Many quality stocks have taken a heavy beating recently the stock market crash. The quality stocks also include railway stocks. Among the railway majors, Rail Vikas Nigam Limited or RVNL share price has corrected about 35 percent from its record high of ₹622 pieces on NSE. Likewise, IRCTC share price has corrected nearly 30 percent from its all-time high of ₹1,138.90 each. The IRFC share price has corrected about 40 percent towards its lifetime high of ₹229 per share, while IRCON International’s share price ended 45 percent lower than record highs on Thursday.

According to stock market experts, the railway companies have delivered decent quarterly figures Results for the second quarter of 2024. The Indian government is expected to increase its focus on the expansion of the railway companies’ Capex, which is expected to increase the business volume of these railway companies. They said that the Government of India (GoI) is likely to focus on railway cavacs to prevent rail accidents after the Maharashtra assembly elections, and railway companies like RailTel and RVNL are expected to benefit from this GoI move. Companies like IRCTC can remain safe bets as they monopolize online railway ticket booking.

Railroad stocks to buy?

Mahesh M Ojha, AVP — Research at Hensex Securities, championing rail stocks in a current market crash, said, “Rail companies have reported decent numbers for Q2FY25, and the GoI is expected to push its spending on rail infrastructure after the Maharashtra assembly elections. The GoI may increase its focus on railway cavach-related businesses to prevent railway accidents. Capex expansion of railway companies may increase from January 2025.”

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

On the triggers for railway stocks, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities said, “After the 2024 Lok Sabha elections, the Indian government has shown its commitment to the development of railway infrastructure. The Cabinet Committee has approved various railway infrastructure projects in the last six months, and the process is expected to pick up once the Maharashtra assembly election results are out.IRFC is expected to emerge as a major beneficiary as it provides credit lines to project-winning railway companies.”

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