Railways Stocks

India has the 4th largest railway system globally, followed by the US, Russia and China. The Indian Railways has a total track length of 1,26,366 km with 7,335 stations. During 2022-23, 5,243 km of track length was achieved, while in 2021-22, 2,909 km were achieved. On a daily basis, the railways operate 13,523 passenger trains and 9,146 freight trains. For FY 2022-23, the Indian Railways (IR) experienced a revenue growth of ₹2.40 lakh crore.

India boasts the 4th largest railway system globally, with significant track length and operational capacity. Expected to become the third-largest railway market by 2027, the sector presents investment opportunities driven by government initiatives and private investments. Before investing in railway stocks, consider government policies, infrastructure development, traffic volumes, safety measures, environmental initiatives, and competition. Indian Railway Catering and Tourism Corp (IRCTC) is a notable stock, enjoying government monopoly and a 5-year average Return on Investment of 31.08% as of February 2, 2024. Angel One provides a convenient platform for investing in railway stocks.

By 2027, the Indian railway market is expected to be the third largest. The Indian government has announced two major initiatives for seeking private investments: to run passenger trains by private operators across the railway network and redevelopment of railway stations across the country. According to Indian Railways, these projects can bring over $7.5 billion investment by 2027-28.

• Government policies and regulations: Evaluate government policies and regulations governing the railways sector. Changes in policies can significantly impact the industry, affecting investment returns.
• Infrastructure development: Assess ongoing and planned infrastructure development projects in the railways sector. Investments in modernisation, expansion, and technology upgrades can indicate growth opportunities.
• Traffic and freight volumes: Examine the trends in railway traffic and freight volumes. Increasing volumes suggest a healthy demand for rail services, which is positive for the sector.
• Safety measures: Safety is essential in the railways sector. Assess the safety measures implemented by railway companies, as incidents can lead to regulatory scrutiny and financial implications.
• Environmental initiatives: Consider the environmental sustainability initiatives of railway companies.
• Competition: The railway sector faces competition from other modes of transport, like air and road travel.

Investing in railway stocks via Angel One is easy. Simply follow these steps:

• Log in to your Angel One account.
• Click on the average icon and look for your desired railway stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

If you don’t have a Demat account with Angel One, you can open one for free online within minutes.