India’s railway industry continues to be an investor focus, with a number of listed players reporting good financials and operational efficiency. High returns on equity and stable profitability reflect strong fundamentals despite some revenue falls in the short term. Valuations are a mixed bag, but the potential in infrastructure and logistics is still promising. These players are among the major gainers of India’s growing rail network.
1. Indian Railway Finance Corporation
Indian Railway Finance Corporation Limited (IRFC), founded in New Delhi in 1986, is a non-banking finance and infrastructure finance firm. IRFC mainly leases Indian Railways’ railway infrastructure and rolling stock assets. IRFC mobilizes funds in the financial markets to fund these assets and the expansion and modernization of India’s railway network.
The company reported a revenue of Rs 27,153 crores in FY25, up by 1.90 percent from its FY24 revenue of Rs 26,645 crores. It reported a net profit growth of 1.40 percent to Rs 6,502 crores from Rs 6,412 crores in FY24.
The company delivered an ROE and ROCE of 12.8 percent and 5.83 percent respectively, and is currently trading at a P/E of 27.53x as compared to its industry average of 22.71x.
2. Container Corporation Of India
Container Corporation of India Ltd is a Navratna company that Indulges in the handling, transportation, and warehousing in India. It offers rail and road container transport, cold-chain solutions, and multimodal logistics, and operates dry ports, freight stations, and air cargo complexes. The company also provides bonded warehousing, factory stuffing/destuffing, and hub-spoke services.
The company reported a revenue of Rs 8,887 crores in FY25, registering a growth of 2.70 percent from Rs 8,653 crores in FY24. Net profit also rose by 2.38 percent to Rs 1,292 crores from Rs 1,262 crores in the previous fiscal year.
The company delivered an ROE and ROCE of 10.9 percent and 13.69 percent respectively, and is currently trading at a P/E of 33.33x as compared to its industry average of 26.64x.
3. Rail Vikas Nigam
Rail Vikas Nigam Limited (RVNL) is a public sector undertaking engaged in the execution and development of Indian railway infrastructure projects. RVNL trades in new lines, doubling, and gauge conversion, electrification, and metro projects and also in complex works like bridges and institutional buildings. RVNL raises project implementation finance as well as provides services to Indian Railways and other central and state government organizations.
The company reported a revenue of Rs 19,923 crores in FY25, marking a decline of 8.98 percent from Rs 21,889 crores in FY24. Net profit also fell by 18.55 percent, dropping to Rs 1,282 crores from Rs 1,574 crores in the previous fiscal year.
The company delivered an ROE and ROCE of 13.99 percent and 14.71 percent respectively, and is currently trading at a P/E of 65.13x as compared to its industry average of 19.46x.
4. Ircon International
Ircon International Limited offers a variety of construction and infrastructure services, primarily in the rail sector. It constructs new railway tracks, renovates existing ones, and undertakes electrification, signaling, and telecommunication projects. It also builds roads, highways, bridges, airports, and other commercial and residential structures. Additionally, it provides turnkey project solutions, design, supply, and commissioning, and is engaged in renewable energy, electrification, leasing, and maintenance of locomotives.
The company reported a revenue of Rs 10,760 crores in FY25, down by 12.74 percent from Rs 12,331 crores in FY24. Net profit also declined by 21.72 percent to Rs 728 crores from Rs 930 crores in the previous fiscal year.
The company delivered an ROE and ROCE of 11.93 percent and 12.10 percent respectively, and is currently trading at a P/E of 23.87x as compared to its industry average of 19.46x.
Written by Satyajeet Mukherjee
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