IRCTC, IRFC, RVNL: 7 Railway Stocks Are Potentially To Benefit After Inauguration Of Ayodhya Ram Mandir

The inauguration of Ayodhya Ram Mandir on January 22 is a heartfelt moment of pride, joy and an essence of spiritual uplifting for Indian citizens. During this historic moment, seven railway stocks could potentially benefit after the launch of the Ram temple. These stocks are IRCTC, IRFC, RVNL, Titagarh Rail Systems, IRCON Internation, Jupiter Wagons, and BEML. Six of them are mulitbaggers.

Although, the majority of experts have openly said IRCTC is the biggest beneficiary from Ayodhya Ram Mandir in the railway segment due to its forefront nature of business of providing categering and services to railways and stations, however, the other six stocks in the background have a huge potential to contribute to the development of railways in the city that is situated on the banks of the Sarayu river of Uttar Pradesh.

It needs to be noted that the government has not officially detailed the companies involved in the transformation of Ayodhya amidst the launch of Ram Mandir. However, there are huge projects that have been announced which bring an opportunity for many sectors, especially railways.

On December 30, PM Narendra Modi inaugurated the redeveloped Ayodhya Railway Station and flagged off new Amrit Bharat trains and Vande Bharat trains. He also dedicated several other railway projects to the nation.

The redeveloped Ayodhya Railway Station - known as Ayodhya Dham Junction Railway Station, will have a cost of over Rs 240 crore. As per PIB, the three-storey modern railway station building is equipped with all modern features like lifts, escalators, food plazas, shops for puja needs, cloakrooms, child care rooms, and waiting halls. The station building will be 'accessible for all' and 'IGBC certified green station building'.

Notably, the Ayodhya Dham Junction Railway Station witnessed the Prime Minister flagging off a new category of superfast passenger trains in the country - the Amrit Bharat Express.

The Amrit Bharat train is an LHB push-pull train with non-air-conditioned coaches. This train has locos at both ends for better acceleration. It provides improved facilities for rail passengers like beautifully designed seats, better luggage racks, mobile charging points with suitable mobile holders, LED lights, CCTV, public information system, among others. The Prime Minister also flagged off six new Vande Bharat Trains.

Further, PM Modi flagged off two new Amrit Bharat trains viz Darbhanga-Ayodhya-Anand Vihar Terminal Amrit Bharat Express and Malda Town-Sir M. Visvesvaraya Terminus (Bengaluru) Amrit Bharat Express.

More superfast trains to travel on the soil of Ayodhya. PM Modi also flagged off six new Vande Bharat Trains. These include Shri Mata Vaishno Devi Katra-New Delhi Vande Bharat Express; Amritsar-Delhi Vande Bharat Express; Coimbatore-Bangalore Cantt Vande Bharat Express; Mangalore-Madgaon Vande Bharat Express; Jalna-Mumbai Vande Bharat Express and Ayodhya-Anand Vihar Terminal Vande Bharat Express.

Finally, Modi dedicated three railway projects worth Rs 2300 crore to the nation to strengthen rail infrastructure in the region. The projects include the Rooma Chakeri-Chanderi third line project; Jaunpur-Tulsi Nagar, Akbarpur-Ayodhya, Sohawal-Patranga and Safdarganj-Rasauli sections of the Jaunpur-Ayodhya-Barabanki doubling project; and doubling and electrification project of the Malhaur-Daliganj railway section.

Why these seven stocks may potentially benefit from Ayodhya Ram Mandir?

With the extensive projects vowed in Ayodhya, these companies' nature of business aligns with it.

1. IRCTC Share Price:

The top of the list is Indian Railways' catering services provider, IRCTC which needs no telling but directly benefits from the new railway projects in Ayodhya.

This Mini Ratna was incorporated in September 1999, as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through the development of budget hotels, special tour packages, information & commercial publicity and global reservation systems.

In a year, IRCTC's share price has gained by 44%. This railway stock started 2024 with a bang and touched a new 52-week high of Rs 929.50 recently, surpassing many brokerages' target prices. Currently, the stock is above Rs 920, also near its peak levels.

2. Indian Railway Finance Corporation (IRFC) Share Price:

IRFC, whose stock price was a rising star in 2023 under the railways segment, may also be in focus. IRFC is the dedicated funding arm of Indian Railways. The company was set up in December 1986 to mobilize funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways.

IRFC shares have emerged as a multi-bagger since 2023. In a year, the stock climbed by a whopping 210% on BSE. Starting in 2023 from below Rs 33 price levels, IRFC share prices have skyrocketed to touch a new 52-week high of Rs 104.14 apiece recently. The stock continues to trade above Rs 100.

3. Rail Vikas Nigam (RVNL) Share Price:

RVNL works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. The organization undertakes project execution from concept to commissioning and creates project-specific SPVs.

Hence, this stock may also be in focus and potentially see an upside amidst the Ayodhya Ram Mandir's launch and after.

RVNL is another multi-bagger of the railway sector. In a year, the stock zoomed by 157% on BSE as of now. RVNL had touched a new 52-week high of Rs 199.25 apiece in September last year.

But currently, the stock is nearing its 1-year highs. On January 9th, RVNL jumped to as much as Rs 187.30 on BSE.

4. Titagarh Rail Systems Share Price:

Next up is Titagarh Rail Systems formerly known as Titagarh Wagons. The company is engaged in producing railway castings such as bogies and couplers for the Indian railways. The company also caters to passenger rolling stock including trains and metros as well. They also participated in India's Semi high-speed train project, "Vande Bharat," aligning with policies like 'Make In India' and 'Atmanirbhar Bharat.'

Titagarh Rail is another blockbuster stock under railway stocks. In a year, Titagarh Rail zoomed by over 350% on BSE. Last month, Titagarh touched a new 52-week high of Rs 1,090.95 apiece, and currently, it is trading over Rs 1,020 levels.

5. IRCON International Share Price:

Also, government-backed, IRCON focuses on the construction of roads, bridges, railways, airports, airport runways, and residential, industrial, and commercial buildings. It also provides services such as railway electrification, leasing of locomotives and passenger cars, and signals and telecommunications installations.

IRCON is also a multi-bagger stock in the railway sector. In a year, the stock has climbed nearly 200% on BSE. It has touched a 52-week high of Rs 190.85 apiece recently and currently trades over Rs 180 levels.

6. Jupiter Wagons Share Price:

Although a private manufacturer, Jupiter Wagons has a long history of manufacturing railway freight wagons, passenger coaches, wagon components, cast manganese steel crossings and castings for Indian Railways and private companies.

Jupiter's share price has soared by 250% on BSE in a year.

7. BEML Share Price:

BEML is engaged in manufacturing a variety of heavy equipment, such as that used for earth moving, railways coaches and spare parts, transport and mining. Headquartered in Bangalore, BEML has a nationwide network for after-sales and services of Mining and Construction Equipment spread across India. It is the second second-largest manufacturer of earth-moving equipment in Asia.

In a year, BEML shares have jumped by more than 111% on the BSE.

In recent times, railway stocks have witnessed a stellar bull run so far owing to key factors like investment programs during fiscal years 2024-31, developments in the G20 Summit, and improvement in businesses. Also, budget allocation is highest in this sector for FY24, production of Vande Bharat trains, and measures for revamping and enhancement of railway coaches and services. Following these developments, the majority of railway stocks have given triple-digit returns in 2023.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.