3 Railway Stocks Give Better Returns Than FD Rates For 5-Years Tenure; PL Recommends BUY! Check A Comparison

Three railway stocks are the thematic pick of PL Capital. What's interesting about these three railway stocks is their performance in the long term. For a period of 5 years, these three railway stocks have given returns ranging from 700% to more than 5,000%. These are far better than the 5-year tenure FD rates offered by both private and public sector banks.

The stock market is always considered as a high returns investment scheme, but the real strategy is staying invested in these stocks for the long run. FDs are traditional schemes, offering guaranteed returns and are risk-free, making them handy for investors who do not wish to enter a risky investment scheme which as stocks.

Who are these railway stocks?

1. Jupiter Wagons Ltd Share Price:

After market hours of May 16th, Jupiter Wagons' share price closed at Rs 422.20 apiece, up by 8.8% on BSE with a market cap of Rs 17,922.31 crore. The stock's return on equity is at 14.85%.

For the trading week from May 12-16, Jupiter Wagons stock zoomed by over 18%. But in a 5-year timeframe, the stock skyrocketed by a whopping 5,055.07%. Once upon a time, the stock was merely at Rs 8.19 on May 22, 2020.

PL Capital has recommended buying. It said, "The stock has indicated a decent pullback after making a higher bottom formation on the daily chart taking support at 326 zone and has just moved past the important 50EMA at 362 level with significant volume participation to improve the bias anticipating for further rise in the coming days."

"The RSI has recovered strongly from the oversold zone to indicate a positive trend reversal to signal a buy and has further upside potential from the current rate. The chart looks technically well placed and we suggest buying and accumulating the stock for an upside target of 500 level keeping the stop loss of 330," the brokerage's note said.

Jupiter Wagons is a premier manufacturer of railway wagons, components for passenger coaches, and alloy steel casting for rolling stack and track.

2. Texmaco Rail & Engineering Share Price:

Texmaco is small in the railway basket, trading at Rs 163.25 apiece on BSE, with a market cap of Rs 6,521.30 crore. On May 16 alone, the stock zoomed by 5.5%. From May 12-16, the stock rallied by 18% on BSE. In 5-year span, the stock has advanced by a whopping 722.83%, compared to the Rs 19.84 price level on May 22, 2020.

Texmaco's 52-week high and low are at Rs 296.60 apiece and Rs 115.10 apiece respectively. Its return on equity is at 7.06%.

The stock has witnessed a significant erosion from the peak zone of 295 levels and recently has shown good support near the 124 zone to indicate stability currently with a decent pullback has improved the bias moving past the important 50EMA at 144 level, anticipating for further rise. The RSI is well placed and has indicated a positive trend reversal to signal a buy and has much upside potential to carry on with the positive move further ahead. With the chart technically looking good, we suggest to buy and accumulating the stock for an upside target of 200 keeping the stop loss of 130, as per the analyst's note.

Texmaco Rail is a premier multi-discipline, multi-unit engineering and Infrastructure Company, with 5 manufacturing units extending over 170 acres on the outskirts of Kolkata.

3. Titagarh Rail Systems Ltd Share Price:

Titagarh is a BSE 500 club stock, and is currently at Rs 912.80 apiece, with a market cap of Rs 12,293.02 crore. After the closing bell on May 16, Titagarh shares zoomed by nearly 13%. Its weekly performance is better than Jupiter and Texmaco, with gains of at least 26.3% on BSE from May 12-16. In 5 years span, Titagarh stock rallied by 2,942.67% on BSE. 5 years ago, the stock price was at Rs 30 on May 22, 2020.

Its latest 52-week high and low is at Rs 1,896.50 apiece and Rs 655.30 apiece respectively, while its return on equity is at 13.01%.

For Titagarh, PL's note said, that the stock after witnessing a significant erosion has indicated bottoming out near the 658 zone with a double bottom formation visible and with a decent pullback has improved the bias anticipating further rise. The RSI has strongly recovered from the oversold zone to indicate strength and has much upside potential to carry on with the positive move further ahead. With the chart technically looking good, we suggest buying and accumulating the stock for an upside target of 1000 keeping the stop loss of 660.

Titagarh is a leading comprehensive mobility solution provider with a strong presence in India and Italy. With state-of-the-art factories in both countries, we are committed to meeting the diverse requirements of passenger and freight rail systems.

Top Bank FD Rates Of 5 Years Tenure:

SBI FD Rates:

This largest PSU bank is offering 7.30% interest rate to senior citizens for 5 years and up to 10 years tenure, while the rate is at 6.30% to general category. Also, the bank is offering 7.05% rate to elderlies on 3 years to less than 5 years tenure, but 6.55% to general category individuals for the same tenure.

HDFC Bank FD Rates:

This largest bank of India, is offering 7% rate to senior citizens for 5 Years 1 day - 10 Years tenure, and 6.50% to general categories. While the interest rate is at 7.25% on 4 Year 7 Months 1 day to less than or equal to 5 years to senior citizens, while the rate is at 6.75% for the same.

ICICI Bank FD Rates:

To senior citizens, ICICI Bank is offering 7.40% rate each on 2 Years 1 Day to 5 Years and 5-year tax saver FD scheme. While the rate is at 7.30% on 5 Years 1 Day to 10 Years.

To general category, the bank is offering 6.90% each on 2 Years 1 Day to 5 Years and 5Y (Tax Saver FD) maturity period. The rate will be 6.80% on 5 Years 1 Day to 10 Years tenure.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.