India’s vast railway network stretches across thousands of kilometres, connecting nearly every corner of the country. It ranks as the fourth-largest in the world, following the United States, China, and Russia.
Looking ahead, India is expected to contribute 40 percent to the global rail activity by 2050. Indian Railways is also advancing its technological capabilities in key areas such as signalling and telecommunications. As part of this effort, 15,000 kilometres of track are being upgraded with automatic signalling, while 37,000 kilometres are set to be equipped with ‘KAVACH’—a homegrown Train Collision Avoidance System. Additionally, the government has laid out plans to develop 5,000 kilometres of metro rail across 100 cities by the year 2047.
However, despite the sector’s long-term growth potential, many railway stocks have seen declining returns in recent times. One key reason behind this dip is the disappointing financial performance of several railway companies. Lower-than-expected revenue growth, shrinking net profits, and weak earnings reports have triggered negative sentiment in the stock market, raising concerns among investors about the short- to medium-term outlook.
Following are a few railway stocks that are currently trading at a discount of up to 60 percent from their 52-week highs to add in your watchlist:
With a market cap of Rs. 17,978 crores, the stock fell nearly 1.3 percent to close in the red at Rs. 191.15 on Friday. The stock hit its 52-week high at Rs. 351.65 on 15th July 2024, and compared to Friday’s closing price, the stock is trading at a discount of nearly 46 percent. The shares of IRCON have delivered negative returns, crashing by nearly 40 percent in one year, as well as over 11 percent in the last one month.
On the financial front, the company’s revenue from operations declined by around 10 percent YoY to Rs. 3,412 crores, while the net profit fell by nearly 14 percent YoY to Rs. 212 crores in Q4 FY25.
With a market cap of Rs. 12,519 crores, the stock fell nearly 2 percent to close in the red at Rs. 929.6 on Friday. The stock hit its 52-week high at Rs. 1,751.7 on 15th July 2024, and compared to Friday’s closing price, the stock is trading at a discount of nearly 47 percent. The shares of Titagarh Rail have delivered negative returns, crashing by nearly 46 percent in one year, as well as around 1 percent in the last one month.
On the financial front, the company’s revenue from operations declined marginally by around 4 percent YoY to Rs. 1,006 crores, while the net profit fell by nearly 19 percent YoY to Rs. 64 crores in Q4 FY25.
With a market cap of Rs. 15,732 crores, the stock fell nearly 1.3 percent to close in the red at Rs. 370.6 on Friday. The stock hit its 52-week high at Rs. 727 on 15th July 2024, and compared to Friday’s closing price, the stock is trading at a discount of nearly 49 percent. The shares of Jupiter Wagons have delivered negative returns, crashing by nearly 46 percent in one year, as well as more than 9 percent in the last month.
On the financial front, the company’s revenue from operations declined marginally by around 6 percent YoY to Rs. 1,045 crores, while the net profit fell by nearly 2 percent YoY to Rs. 103 crores in Q4 FY25.
With a market cap of Rs. 1,143.3 crores, the stock fell nearly 1 percent to close in the red at Rs. 177.1 on Friday. The stock hit its 52-week high at Rs. 445 on 19th July 2024, and compared to Friday’s closing price, the stock is trading at a discount of nearly 60 percent. The shares of Oriental Rail have delivered negative returns, crashing by nearly 53 percent in one year, but have gained by around 7 percent in the last month.
On the financial front, the company’s revenue from operations declined by around 18 percent YoY to Rs. 140.2 crores, while the net profit grew by nearly 23 percent YoY to Rs. 5.4 crores in Q4 FY25.
Written by Shivani Singh
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