Rail stocks on a wobbly path after small caps lose their sheen

Mar 14, 2024

By: Katya Naidu

Multibaggers go slow

Railway stocks like RVNL, IRFC and IRCON gave great returns last year. But they’ve been crashing for the last few weeks, as investors take a re-look at smallcap stocks.

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On a fast track

The Indian government’s steady investments into building railway infrastructure and order booking by railway companies helped companies in the sector grow fast — and generate value. However, concerns around overheating in small-caps have led to selling in the last one month.

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RVNL

Rail Vikas Nigam Limited stock fell over 10 percent in the last few weeks. But it has retained its multi-bagger status with 2.1 times returns to those who stayed invested in it for over a year.

Credit: IANS

​IRFC

Another high-flying stock, Indian Railway Finance Corporation fell by around 19 percent in the last one month — after giving a massive 3.5 times returns in a year.

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IRCON

Indian Railway Construction International stock also fell by 16.6 percent in the last one month. It has also given 2.8x returns over a period of one year.

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IRCTC

The stock of Indian Railway Catering and Tourism Corporation fell 5.3 percent in a month, after rising 45 percent in the last one year.

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Titagarh Rail Systems

The stock fell by 13.5 percent in the last one month, after giving 2.9x returns in the last one year.

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Jupiter Wagons

The Kolkata-based company’s stock fell by 12.5 percent in the last one month. Over the last one year, it has risen twice over.

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Many remain multibaggers

In spite of a sharp fall, most railway stocks have retained their multi-bagger status, by giving over 100 ​percent returns in a year.

Credit: IANS

​Mutual funds add newly listed small caps as they completely exit these stocks