In recent sessions, railway stocks have been on a bullish trend, catching the attention of investors. Over the past five sessions, we’ve seen significant growth in several key railway companies. Here’s a look at the standout performers and their year-to-date (YTD) returns:
1. Ircon International:
This railway stock has emerged as a standout multibagger in the Indian stock market. In YTD, Ircon’s share price has soared from approximately ₹60 to ₹174 per share on NSE, marking an impressive gain of nearly 190% in 2023. Over the last six months, Ircon’s stock price has surged from about ₹52 to ₹174 per share on NSE, delivering a remarkable 235% return to long-term investors.
2. IRFC (Indian Railway Finance Corporation):
IRFC’s stock has made significant strides, climbing from roughly ₹33 to ₹92 per share in YTD, resulting in an impressive return of nearly 180% for long-term investors in 2023. Over the past six months, it has risen from ₹27.50 to ₹92 per share on NSE, recording an astonishing 235% increase in this period. IRFC stands as one of the standout multibagger stocks of 2023.
3. RVNL (Rail Vikas Nigam Limited):
RVNL has also made its mark among the multibagger stocks in 2023. YTD, this stock has surged from around ₹68.50 to ₹199.25 per share on NSE, delivering approximately 190% returns to its shareholders. Over the last six months, RVNL’s share price has risen from about ₹64 to ₹199.25 per share, registering a substantial 210% increase during this period.
4. RailTel:
Another notable multibagger stock in the railway sector, RailTel has witnessed its share price climb from around ₹132.50 to ₹255 per share on NSE, resulting in nearly a 90% increase in YTD. Over the past six months, it has doubled investors’ money, rising from ₹105 to ₹255 per share, delivering a robust return of approximately 140% to long-term investors.
5. BEML (Bharat Earth Movers Limited):
BEML, a significant player in the railway sector, has also impressed investors with its substantial gains in 2023. YTD, the company has seen its stock price increase by 60%, while over the last six months, it has delivered a multibagger return of nearly 110% to positional investors.
What Lies Ahead?
Regarding the future outlook of these multibagger railway stocks, Sumeet Bagadia, Executive Director at Choice Broking, advises shareholders to consider profit booking, especially given the recent profit-taking in small-cap and mid-cap stocks. However, for those with a long-term perspective, Bagadia suggests considering Ircon International shares as a buy opportunity around ₹125 per share, with a recommended stop loss at ₹110 per share.
As railway stocks continue to generate significant attention and returns, investors will be keeping a close eye on developments in this sector throughout the remainder of 2023.
