A few months ago, Railway Stocks were witnessing a great rise, after which investors were also betting heavily on these stocks. However, now these stocks are seeing a decline. On Tuesday also, railway stocks were seen trading under pressure. Shares of RVNL to IRCTC fell by about 2 percent. However, on Wednesday, these stocks are seeing a slight rise.
Railway stocks have given multibagger returns in the last few years. Government railway stocks include Rail Vikas Nigam (RVNL), IRCON International, RITES, RailTel Corporation of India and Indian Railway Tourism Corporation (IRCTC). These stocks have given returns of up to 2100 percent during the 18-24 months before the fall. However, now profit booking has dominated these stocks, on which experts have also given their view. Experts believe that the shares of these government companies can fall by more than 50 percent.
How much will RITES shares fall?
RITES Ltd shares have given a return of 230 percent in the last two years. In February, it was at its 52-week high level of Rs 826.15 per share. However, currently this stock is 20 percent below its high level at Rs 666. Axis Securities has advised to keep it on hold and has set a target price of Rs 660.
IRCTC Shares
IRCTC’s 52-week high was Rs 1,148.30 on 22 May 2024. From here, this stock has fallen by 20 percent. Prabhudas Lilladher said that the growth in internet ticketing is stable. In such a situation, the target of this stock is Rs 822. Currently this stock is trading at Rs 931.25.
RailTel Corporation Shares
Shares of RailTel Corporation of India Limited have gained more than 580 per cent in the last 24 months and reached the level of Rs 618 in July 2024. The stock has fallen by about 25 per cent in the last one month. ICICI Securities said that RailTel expects telecom revenue to grow by 9 to 10 per cent. However, its expenses are also expected to increase rapidly. Experts have set its target at Rs 315.
IRCON International
Shares of IRCON International rose 775 per cent in the last two years to Rs 350 on July 15. On Tuesday, the share price fell 25 per cent from its peak to Rs 265. IDBI Capital said that IRCON expects revenue growth to remain flat on a year-on-year basis in FY25 and EBITDA margin to remain at the same level. In such a situation, the target for this stock is Rs 272 and it has advised to sell.
Shares of RVNL
Shares of Rail Vikas Nigam Limited have risen nearly 2,100 per cent in the last two years to Rs 647 in mid-July 2024. In a month, the stock has fallen 13 per cent from those levels. RVNL reported a 35 per cent year-on-year decline in its consolidated net profit to Rs 224 crore, while its revenue from operations fell 27 per cent year-on-year to Rs 4,074 crore during the April-June 2024 period.
Antique Stock Broking said its order book stands at Rs 83,200 crore (4x TTM revenue). Experts said that we resume coverage with a ‘sell’ rating and an SOTP-based target price of Rs 283 on the stock. This indicates a downside of more than 50 per cent.
(Note- Before buying or selling any stock, please consult your market expert.)
Source (PTI) (NDTV) (HINDUSTANTIMES)