What is the story about?
Shares of Rail Vikas Nigam Ltd., RailTel Corporation of India Ltd., IRFC Ltd. and other railway PSUs gained for the fifth straight day on Friday, December 26, thereby continuing to trim their losses for the years.
RVNL shares have gained as much as 12%, marking their biggest single-day gain since May, while those of RailTel, IRFC, and IRCON International are trading with gains between 8% to 10%.
Shares of RVNL are up 24% in the last five trading sessions, while those of IRCON, IRFC and RailTel have gained between 15% to 20% during this five-day period. Barring IRCON, which has gained in four out the last five sessions, the other stocks have gained for five days straight.
With this upmove, all these railway PSUs are continuing to trim their losses for the year. RVNL shares are now down only 11% for the year, while at the start of the month, they were down nearly 30%. RailTel has also cut its losses down to 6% for the year, while IRFC and IRCON's shares are down 14% and 18% respectively so far this year.
IRCON is poised for its first negative returns for the year after 2019, while RVNL and IRFC will see their first negative year after listing in 2019 and 2021 respectively.
In recent developments, the Union Cabinet approved the ₹12,000 crore expansion plan of the Delhi metro. The fifth phase of expansion will add 13 new stations and take the network past 400 kilometers. 10 out of the 13 stations are likely to be underground and 3 to be elevated.
On a side note, today is the day when the revised railway fares take effect for travel journeys in excess of 215 kilometers. The fares have been revised by 2 paise a kilometer for AC and NON-AC mail and express trains, while for ordinary class coaches, the fare revision is 1 paise a kilometer. Fares for the seasonal and monthly passes have not been raised.
Most of these railway stocks do not have significant analyst coverage and IRFC also has the overhang of an impending promoter stake sale, as the government still holds over 86% stake in the company, above the prescribed minimum shareholding norms of 75%.
With a 17% upmove in December so far, RVNL is currently going through its best month of 2025, while IRFC's 10% upmove so far month-to-date, makes it the third best month of the year.
RVNL shares have gained as much as 12%, marking their biggest single-day gain since May, while those of RailTel, IRFC, and IRCON International are trading with gains between 8% to 10%.
Shares of RVNL are up 24% in the last five trading sessions, while those of IRCON, IRFC and RailTel have gained between 15% to 20% during this five-day period. Barring IRCON, which has gained in four out the last five sessions, the other stocks have gained for five days straight.
With this upmove, all these railway PSUs are continuing to trim their losses for the year. RVNL shares are now down only 11% for the year, while at the start of the month, they were down nearly 30%. RailTel has also cut its losses down to 6% for the year, while IRFC and IRCON's shares are down 14% and 18% respectively so far this year.
IRCON is poised for its first negative returns for the year after 2019, while RVNL and IRFC will see their first negative year after listing in 2019 and 2021 respectively.
In recent developments, the Union Cabinet approved the ₹12,000 crore expansion plan of the Delhi metro. The fifth phase of expansion will add 13 new stations and take the network past 400 kilometers. 10 out of the 13 stations are likely to be underground and 3 to be elevated.
On a side note, today is the day when the revised railway fares take effect for travel journeys in excess of 215 kilometers. The fares have been revised by 2 paise a kilometer for AC and NON-AC mail and express trains, while for ordinary class coaches, the fare revision is 1 paise a kilometer. Fares for the seasonal and monthly passes have not been raised.
Most of these railway stocks do not have significant analyst coverage and IRFC also has the overhang of an impending promoter stake sale, as the government still holds over 86% stake in the company, above the prescribed minimum shareholding norms of 75%.
With a 17% upmove in December so far, RVNL is currently going through its best month of 2025, while IRFC's 10% upmove so far month-to-date, makes it the third best month of the year.
