Investors are choosing to book profits in railway stocks after the stocks have had a stellar run over the last 12-18 months.
- IRFC shares have declined 9% from last Friday’s high of ₹224.
- Shares of RVNL, which are down for the fourth day in a row, are also down 9% from their recent record high of ₹647.
- IRCON International shares have declined nearly 11.5% from Monday’s high of ₹351.
- Shares of Railtel, which had surged over 14% last Friday, has nearly given up all of those gains in the last three sessions. The stock is down 15% from last week’s high of ₹617.
Even after this drop, shares of IRCON International are trading at a current-year price-to-earnings multiple of 21 times, which is well above the five-year average of just 12.8 times.
Shares of Rail Vikas Nigam, which have surged over 200% in value so far this year, are trading at a price-to-earnings multiple of 75 times for the current year and 67 times for financial year 2026. Both these numbers are well above its five-year average price-to-earnings multiple of 11.9 times.
Despite this recent drop, shares of RailTel are still up 13% so far in July, while IRFC shares are up 17.6% so far this month. Shares of IRCON International are also still up 15.7% so far this month.
Both IRFC and RVNL are yet to upload their shareholding patterns for the June quarter.