Railway stocks have given exceptional returns in the month of April.
Shares of Rail Vikas Nigam (RVNL) have surged almost 50 percent in the past 6 sessions. The stock has advanced from ₹74 on April 19 to currently trade around ₹111. Just in April so far, the stock has surged over 59 percent.
The scrip jumped after the company along with its consortium with Siemens bagged two orders from Gujarat Metro Rail Corporation. Meanwhile, a strong order book has also added to its gains. It has received multiple orders that include the production of 120 advanced Vande Bharat Express trains.
In a stock exchange filing on March 31, the company said that it received a letter of award for the same from the Ministry of Railways for manufacturing cum maintenance of Vande Bharat trainsets including the upgradation of the government manufacturing units & trainset depots.
The stock has given multi-bagger returns in the last 1 year, rallying over 200 percent. Meanwhile, it has advanced 60 percent in 2023 YTD with positive returns in 3 of the 4 months of this calendar year. The 59 percent rise in April so far was followed by a 19 percent rise in March. However, it fell 24 percent in Feb but added 11.5 percent in Jan.
Recently, media houses reported that Indian Railways would begin the production of 120 advanced Vande Bharat Express trains by August 2023. This has also boosted the sentiment of all major railway stocks. Further, a rise in travel and a strong outlook of it continuing post the COVID-19 pandemic has also added to the positive sentiment.
IRCON International has also been giving positive returns for 7 straight sessions, rising 25 percent in this period. It has rallied 28 percent just in April after an 8 percent rise in March. Overall in 2023 YTD, the stock has advanced 20 percent. In the last 1 year, it is up over 64 percent.
Indian Railway Finance Corp (IRFC) is another railway stock that has been on the rise. The stock has gained 38 percent in the last 1 year but is down 6 percent in 2023 YTD. Along with other railway stocks, it has surged 15 percent in April so far.
IRCTC is the only railway stock that has given negative returns in the last 1 year as well as in 2023 YTD. It is seeing some recovery in April. The stock has shed 18 percent in the past 1 year and has lost 5 percent in 2023 YTD, giving negative returns in 3 of the 4 months of the current calendar year. it is up over 6 percent in April so far.
