IRFC, Titagarh, RVNL And Other Railway Stocks Continue Rally For Second Day
The share price of RVNL rose as much as 6.13% during the day to Rs 436.35 apiece on the NSE.
Share prices of railway infrastructure companies continued their upward momentum on Friday, driven by growing expectations that the government may significantly increase capital expenditure in the railway sector in the upcoming Union Budget for the financial year 2025-26.
This rally marks the second consecutive day of gains for railway infrastructure stocks, reversing a correction seen earlier in January.
Shares of Indian Railway Finance Corp. saw a spike on Friday after the company announced on exchanges that it has been rated "excellent" by Department of Public Enterprises for the financial year 2023-24 under the MOU parameters on the operational and financial performance.
IRFC's share price rallied nearly 6% on Thursday before closing at nearly 4% after the company announced that its board had approved financing of 20 BOBR rakes procured under General Purpose Wagon Investment Scheme of Indian Railways to NTPC for up to Rs 700 crore on a finance-lease basis.
The broader rally on Friday is led by RVNL that rose as much as 11% on Thursday and over 6% on Friday as it secured two multi-crore order from BSNL on Jan. 15 and Jan. 16, the orders cumulatively are worth over Rs 13,235 crore.
RVNL shares rose as much as 6.13% during the day to Rs 436.35 apiece on the NSE. It pared gains to trade 5.67% higher at Rs 434.45 apiece, as of 10:45 a.m.
Meanwhile, the overall correction had been triggered by broader market pullbacks after hitting fresh highs in 2024, as well as concerns about high valuations in the railway sector.
Ircon International Ltd. and Texmaco Infrastructure & Holdings Ltd. also saw significant gains, with their stocks jumping over 2% and 3.19%, respectively. These stocks have benefited from renewed investor confidence in the sector, as expectations rise that the government will prioritise railway infrastructure in its spending plans for FY26.
Meanwhile, Indian Railway Catering and Tourism Corp. saw a more modest increase, rising 1.24% to 772.70 per share as of 11:05 a.m., lagging behind other stocks in the sector. Despite this, the overall sentiment remains positive as investors speculate on potential growth opportunities in the railway infrastructure space.
