IRCTC, RVNL, IRFC, RailTel to IRCON: Railway stocks fall up to 3%; opportunity to buy on dip? Experts' views, target, SL
Following the weak trends in the Indian stock market, railway stocks are under pressure since morning. Flagship railway stock, IRCTC is down by near 3%, RVNL share price is down by around 2.50%, IRCON International and Railtel Corporation shares are down by around 2%, RailTel Corporation share price, whereas IRFC share price today is down by around 1.90%.
According to stock market experts, railway stocks are under pressure due to a mix of fundamental corrections, margin pressures, and broader market headwinds. FII outflows, rebalancing valuations, and macro headwinds are some other reasons that are dragging the railway stocks, say experts.
Highlighting the reasons behind the selling pressure in the railway stocks today, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Railway stocks are currently under pressure and trading down significantly due to a mix of fundamental corrections, margin pressures, and broader market headwinds. Railway companies face margin compression due to lower-margin competitive open-bidding projects (moving away from purely nominated or high-margin rail contracts) and execution challenges in projects like Vande Bharat rollouts.”
“The railway sector faces a wider risk-off wave, FII outflows, and monthly F&O expiry volatility impacting high-beta and capex-heavy PSUs. Investors are closely tracking quarterly results and order book execution speed to see if revenue growth can justify previous high price-to-earnings (P/E) multiples,” said Anuj Gupta, a SEBI-registered market expert.
If this fall in the railway stocks an opportunity for bottom fishing, Avinash Gorakshkar said, “Those looking for a value pick can look at IRFC shares. The company deals in the credit lending and some recent Capex pipeline announcement are expected to benefit IRFC. So, one can look at buying IRFC shares.”
Decoding the technical chart of IRFC shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “The stock is in ₹75 to ₹90 range. On breaking above ₹90 on a decisive basis, we can expect the IRFC shares to touch ₹100 and ₹110 in the near term.”
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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