Many quality stocks have taken a beating lately. stock market crash. Quality stocks also include railway stocks. Among the railway majors, Rail Vikas Nigam Limited or RVNL stock price corrected about 35 percent from its record high ₹622 each on the NSE. Likewise, IRCTC Stock Price corrected almost 30 percent from its record ₹1,138.90 each. THE IRFC share price corrected about 40 percent from its all-time high of ₹229 per share, while IRCON International’s share price ended down 45 percent from its record high on Thursday.

According to stock market experts, railway companies published satisfactory quarterly figures in Q2 2024 results. The Indian government is expected to focus more on expanding the capital expenditure of railway companies, which is expected to increase the business volume of these railway companies. They said the Government of India (GoI) is likely to focus on rail kavach to contain train accidents after the Maharashtra Assembly elections, and railway companies like RailTel and RVNL are expected to benefit from this move by the GoI. Companies like IRCTC can remain a safe bet as they monopolize the online train ticket booking industry.

Rail stocks to buy?

In favor of railway stocks in the current market crash, Mahesh M Ojha, assistant vice-president of research at Hensex Securities, said: “Railways reported decent numbers for the second quarter of FY25, and the Indian government is expected to fuel its spending on railway infrastructure after the Maharashtra Assembly. The Indian government may focus more on railway kavach related businesses to contain railway accidents. Therefore, the expansion of railway companies may increase from January 2025.”

On railway stocks to buy, Mahesh M Ojha said, “One can look at RVNL and RailTel stocks as these companies are expected to benefit from their railway kavach business. However, to stay safe, one can look at IRCTC shares, an evergreen railway stock. buy.”

On the triggers for rail stocks, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said: “After the 2024 Lok Sabha elections, the Indian government has shown its commitment towards infrastructure development railway. The cabinet committee has approved various railway infrastructure projects in the last six months, and the process is expected to gain momentum once the results of the Maharashtra Assembly elections are out. The IRFC is expected to become a major beneficiary as it provides lines of credit to project-winning rail companies.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, and not of Mint. We advise investors to seek advice from certified experts before making any investment decisions.