Stock market crash: IRCTC, RVNL to IRFC — Railway stocks correct up to 45% from record highs. Opportunity to buy? | Stock Market News

Many quality stocks have been heavily beaten in the recent stock market crash. The quality stocks include railway stocks as well. Among railway majors, Rail Vikas Nigam Limited or RVNL share price has corrected around 35 per cent from its record high of ₹622 apiece on the NSE. Likewise, IRCTC share price has corrected nearly 30 per cent from its record high of ₹1,138.90 apiece. The IRFC share price has corrected around 40 per cent against its lifetime high of ₹229 per share, while IRCON International’s share price ended 45 per cent lower than its record high on Thursday.

According to stock market experts, railway companies have delivered decent quarterly numbers in Q2 results 2024. The Indian government is expected to enhance its focus on the Capex expansion of railway companies, which is expected to push the business volume of these railway companies. They said that the Government of India (GoI) is likely to focus on rail kavach to contain railway accidents after the Maharashtra Assembly Elections, and railway companies like RailTel, and RVNL are expected to benefit from this GoI move. Companies like IRCTC may remain safe bets as they monopolise the online railway ticket booking business.

Railway stocks to buy?

Batting in favour of railway stocks in a current market crash, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Railway companies have reported decent Q2FY25 numbers, and GoI is expected to fuel its expenditure on the railway infrastructure post-Maharashtra Assembly elections. The GoI may enhance its focus on rail kavach-related companies to contain railway accidents. Hence, Capex’s railway company expansion may increase from January 2025.”

Regarding railway stocks to buy, Mahesh M Ojha said, “One can look at RVNL and RailTel shares as these companies are expected to benefit from their rail kavach business. However, to remain safe, one can look at IRCTC shares, an evergreen railway stock to buy.”

On triggers for the railway stocks, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said, “After the 2024 Lok Sabha Elections, the GoI has shown its commitment towards the railway infrastructural development. The cabinet committee has approved various railway infra projects in the last six months, and the process is expected to gain momentum once the results of the Maharashtra Assembly Election are out. IRFC is expected to emerge as a major beneficiary company as it provides credit lines to project-winning railway companies.”

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.