Amidst railway stocks' robust performance in 2024 so far, two Navratna stocks in the sector are assigned with a BUY rating for potential upside in the range of 17% to 24%. They are IRCON International and RITES Ltd. Both are dividend-paying railway stocks and are well-placed as the government aims to transform the sector.
RITES Ltd Share Price:
On April 23, RITES share price stood at Rs 670.35 apiece, up by 0.93% on BSE with a market cap of Rs 16,108.64 crore. The stock's 52-week high and low are at Rs 826.15 apiece and Rs 344.45 apiece respectively.
YTD, RITES share price has surged by 33% on BSE, while in a year, the gains around about 91%. But, RITES emerges as a multi-bagger with gains of a whopping 245% in 5 years.
Earlier, in 2024, RITES delivered the third interim dividend of 47.5% amounting to Rs 4.75 per share for FY24. Before that, it paid a 45% dividend valued at Rs 4.5 per share for the fiscal. In FY23, the company paid dividends up to 205% amounting to Rs 20.5 per share. Its current dividend yield is at 3.06%.
RITES Limited, a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways, incorporated on April 26, 1974, is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies.
The company's market capitalization has placed it among the top 500 listed companies in India, a testament to the high-quality solutions and services it delivers, driven by its talented pool of professionals.
Brokerage Antique Stock Broking has suggested buying RITES share price for a target of Rs 787, signalling a 17.40% upside ahead from CMP.
IRCON International Ltd:
Antique also recommends BUY on yet another Navaratna railway stock and this time it is IRCON. The brokerage has set a target of Rs 281, hinting at a 23.4% potential upside as compared to the current price level.
On BSE, IRCON's share price stood at Rs 227.80 apiece, up by 2.5% on Tuesday with a market cap of Rs 21,424.95 crore. The stock's 52-week high and low are at Rs 280.90 apiece and Rs 64.03 apiece respectively.
YTD, the stock has zoomed by 31%, while in a year, the stock skyrocketed by 236%. Further, in 5 years, the stock has flown above a massive 465%.
Just like RITES, IRCON too paid dividends earlier in 2024 up to 90% or Rs 1.80 per share for FY24. In FY23, the stock paid up to 150% dividend or Rs 3 per share. Currently, it has a dividend yield of 1.32%.
IRCON was set up to utilize the Indian Railway's experience in helping Developing Nations of the world to install or maintain their railways and also to execute railway projects for the private sector. The Company's specialization is in Railways, Railway Electrification, Signal and Telecommunication, construction of roads, highways, commercial, industrial and residential complexes, airport runways, airport constructions, leasing of locomotives, mass rapid transit systems etc.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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