Railway stocks: With the Union Budget 2025 just a month away, investors seem cautious, contemplating whether this is the right time to invest in Indian railway stocks like Indian Railway Catering and Tourism Corporation (IRCTC), Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam (RVNL) and Railtel Corporation Of India.
IRCTC, IRFC, RVNL, Railtel share price trend
Several railway stocks have been on a downhill slope for the last few months.
On a monthly scale, IRCTC’s share price has been in the red since May this year. IRFC’s share price and Railtel’s share price have been declining since August.
RVNL’s share price has been falling since September.
Is it the right time to buy Indian Railway stocks?
The Indian railway sector is expected to receive a boost from the Union Budget 2025, especially in terms of modernising railway infrastructure amid growing passenger demands.
As per a Mint report, Indian Railways is actively implementing various technological upgrades to its passenger services.
Experts believe the government’s increased budget on railway modernisation could infuse fresh momentum in railway stocks.
According to Mahesh M Ojha, AVP of research at Hensex Securities, the upcoming Union Budget is expected to remain infra-oriented. Hence, railway stocks are one of those segments that will benefit from such budgetary allocations.
However, Ojha added that most railway stocks have limited upside possibilities due to the limited possibility of CAPEX expansion. So, one should buy stock for the short term and avoid any medium or long-term.
“Rail Vikas Nigam (RVNL) and Railtel Corporation Of India stocks are looking better ahead of the budget for 2025,” said Ojha.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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