Stocks to watch ahead of Budget 2025: Experts bet on railway stocks – should you invest?

With the Union Budget 2025-26 set to be unveiled on February 1, stock market experts are turning their focus to railway stocks, as the Government of India is expected to prioritize high-speed rail projects, modernization, and green initiatives. Among the stocks gaining attention are Rail Vikas Nigam Ltd. (RVNL), IRCON International Ltd., and Titagarh Rail Systems Ltd.

Experts anticipate that the Union Budget will focus on enhancing tourism through infrastructure developments like high-speed rail and electrification, along with sustainability efforts in the railway sector. This is expected to drive growth in key railway stocks.

Key Railway Stocks to Watch:

Rail Vikas Nigam Ltd. (RVNL):

RVNL shares have surged over 1,600% in the last five years, and investors are eyeing further growth. The stock closed 2.25% higher at ₹437.05 on January 30, 2025. With a strong track record, RVNL is likely to benefit from budget allocations towards railway infrastructure projects.

IRCON International Ltd. (IRCON):

IRCON shares saw a 4.43% rise to ₹202.60 after the recent market close. Although the stock has faced a 13% decline over the past year, its long-term prospects remain strong, particularly with a potential focus on railway modernization and green initiatives in the upcoming Budget.

Titagarh Rail Systems Ltd. (TITAGARH):

Titagarh Rail Systems has delivered over 100% returns in the last five years. The stock saw a 1.37% rise to ₹960.40 on January 30. Despite some recent volatility, the stock is expected to benefit from the government’s rail modernization push.

Expert Insights:

Narinder Wadhwa, CEO of Ski Capital Services, shared that a fiscal deficit target of 4.5% would be positive for the stock market by balancing fiscal consolidation with economic growth needs. He further highlighted that a focus on railway projects, electrification, and green initiatives would support stocks like RVNL, IRCON, and Titagarh.

With these stocks benefiting from anticipated infrastructure investments, experts suggest that now might be the right time to consider these stocks as potential investments ahead of the Union Budget 2025-26. However, it is always advisable to consult with certified experts before making any investment decisions.

Disclaimer: This article reflects the views of the authors and does not represent the views of Mint. Always seek professional advice before making financial decisions.