RVNL, IRCTC, and IRFC stocks soar on the rail sector boom – What's behind the rise?

Railway stocks, including IRFC and RVNL, are witnessing a notable upswing. Discover the driving factors and expert insights.

Railway Stocks on the Rise

If you've been keeping an eye on the stock market, you might have noticed a remarkable trend lately – railway stocks are on the rise. But what's driving this surge, and should you consider investing in these stocks? Let's break it down.


  • Railway stocks, including RVNL, IRCTC, and IRFC, are surging on the market.
  • The government's Rs 5.25 lakh crore investment plan is driving this railway sector boom.
  • Impressive stock performance: IRFC's 20% surge, RVNL's 18% jump, and IRCTC's 2% increase.
  • Analysts are bullish on these stocks.

How are the railway stocks performing?

  • RVNL, the engineering and construction company, started positively and reached a new all-time high of Rs 163.45 per share, marking an 18% increase in a single trading day.
  • IRFC saw a 20% surge, reaching Rs 66.90 per share.
  • IRCTC, the ticketing and tourism giant, also experienced a 2% increase in morning trading, reaching Rs 703.20 per share.
  • IRCON International reached an all-time high of Rs 126.40 per share, with a 6% increase during the same trading session.

The railway sector's performance at a glance

The railway sector's performance at a glance

Data as of 04-Sep-2023

Also ReadThe Railway Revolution: Why Investors Are Jumping On Board With IRCTC, Texmaco, And IRCON

What are the reasons for this surge?

  • Government investments: The Indian government plans to invest ₹5.25 lakh crore in the PM Gati Shakti National Master Plan between 2024 and 2031. This massive investment aims to build new railway tracks, upgrade existing infrastructure, and electrify the network, with a focus on high-speed rail corridors.

  • Production-linked incentive (PLI) scheme: To reduce dependency on imports and attract foreign investments, the government has introduced a PLI scheme for train component manufacturers.

  • Rising demand for rail travel: Factors like increasing disposable incomes, urbanisation, and government support for public transportation have boosted the demand for rail travel.

The takeaway - What are analysts saying?

  • IRFC: Analysts at Motilal Oswal suggest holding the stock with a stop-loss at Rs 61, predicting potential short-term gains up to Rs 72. The overall sentiment remains bullish.

  • IRCTC: Choice Broking recommends a Buy rating with a short-term price target of Rs 725 to Rs 750. They also note a positive chart pattern breakout.

  • RVNL: Motilal Oswal suggests holding with a stop-loss at Rs 148 and a target price of Rs 160. Other experts foresee a strong breakout beyond Rs 144.

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 Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.


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