Operations of Indian Railways impact virtually every Indian. The body, having the sole right to run railway operations across the country, is vital for the Indian economy and security. If Indian Railways were a company, investing in it at a suitable price would be the perfect money-minting opportunity for an investor. Alas! No one can invest in Indian Railways.
However, the good news is that Indian Railways does not function in isolation. A number of companies, mostly owned by the government, work in tandem with it to provide numerous products and services. You invest in some of them, like IRFC share, from exchanges.Following are the top Indian Railway stocks that may offer the opportunity to make money:
Indian Railway Catering Tourism Corporation (IRCTC): It is perhaps the most recognisable railway company as it facilitates online ticket booking and catering services on trains. Every railway traveller will interact with IRCTC at any point in her journey. Since listing on bourses in 2019, its shares have also made much money for investors. Analysts believe the trend may continue.
Container Corporation of India (CONCOR): Have you seen freight containers loaded on goods trains? Most likely, CONCOR is the company that is handling them. Currently, the government holds a majority stake in it, but there are plans to divest part of its holdings. This creates a lot of buzz for CONCOR, and if privatisation is realised, it will create value for investors.
Indian Railway Finance Corporation (IRFC): It is another vital cog in Indian Railways’ wheel. IRFC is liable to secure financing for Indian Railways’ capital expenditures and expansions. Even though, since listing, the IRFC share price has not appreciated much, many believe it is India’s best-run non-banking finance company. Currently, it is also available at a relatively affordable valuation.
Rail Vikas Nigam: The company undertakes and executes the project development, financing and implementation of projects related to rail infrastructure, for instance, rail bridges, tunnels, platforms, and new rail lines. As Indian Railways focuses on expanding its operations, Rail Vikas Nigam is likely to be f the biggest beneficiary.
Ircon International: It is a full-fledged engineering and construction company that builds railway infrastructure in India and works on civil infrastructure across India and the world. It is also building metro rail in many cities.
Titagarh Wagons:The company primarily makes railway coaches for Indian Railways. It also builds components for bailey bridges and supplies mining equipment. As Indian Railways’ freight traffic zooms, especially after the e-commerce boom, demand for wagons is likely to rise, which bodes well for a company like Titagarh Wagons.
BEML: The company supplies products and parts to not just Railways but also has operations in the fields of defence, aerospace, and mining. It builds passenger coaches, maintenance vehicles, and freight wagons for railways and metro rails. As metro rail is being built across India, its business will likely grow rapidly, and so will its earnings.
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