Rail-related stocks in focus; JWL, Kernex, RailTel, BEML rally up to 9%

Jupiter Wagons (JWL) surged 9% to ₹337.70 on the back of over four-fold jump in the average trading volumes; the stock has zoomed 30% in two days.

Share prices of rail-related companies today

 

Shares of railway-related companies Jupiter Wagons (JWL), Kernex Microsystems India, RailTel Corporation of India, BEML, IRCON International, Rail Vikas Nigam Limited (RVNL), RITES, Titagarh Rail Systems, Indian Railway Finance Corporation (IRFC) and Texmaco Rail & Engineering were in focus and rallied up to 9 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market. In comparison, the BSE Sensex was trading 0.07 per cent lower at 85,517 at 10:33 AM.

 

Among individual stocks, JWL surged 9 per cent to ₹337.70 on the back of an over four-fold jump in the average trading volumes. In the past two trading days, the stock price of the railway wagons maker has soared 30 per cent. A combined 42.74 million equity shares changed hands on the NSE and BSE.

 

IRCON International rallied 5 per cent to ₹164.25, followed by RailTel Corporation of India (4 per cent at ₹357.80) and BEML (4 per cent at ₹1,875).

 

What’s driving railway stocks on Tuesday?

 

The Centre has approved 38 major railway projects in Maharashtra with a total investment of ₹89,780 crore, covering 5,098 km as of April 1, 2025. These include 11 new lines, two gauge conversion projects, and 25 doubling or multitracking works to enhance rail capacity and connectivity. Around 2,360 km has already been commissioned, with ₹39,407 crore spent so far. The expansion also includes platform extensions at 34 stations to support 15-car EMU trains and capacity upgrades under the Mumbai Urban Transport Project to address growing suburban passenger demand.

 

RITES announced that it has received a letter of award from Ndalama Capital (Pty) Ltd., South Africa for supply and commissioning of in service diesel electric locomotives. The size of the contracts is $35 million and executed in 18 months.

 

Meanwhile, BEML’s revenue is likely to enter a two-digit growth trajectory from FY27 as a large portion of its orderbook of ₹16,000 crore, primarily from railway & metro (R&M) and defence, would see strong execution momentum. The company's management has retained its revenue target of 20 per cent in FY26 with margin improvement by 150bp, although analysts at Elara Capital believes it is a daunting task as H1 revenue fell by 1 per cent YoY. 

 

The brokerage firm has retained its Buy rating on BEML with a target price of ₹2,700, due to double-digit earnings growth during FY25-28E, rising order pipeline ensuring steady revenue visibility along with the scope for a margin rise. 

 

The R&M segment may witness a huge order pipeline, led by a large ticket order of the Mumbai Rail Vikas Corporation (MRVC) air conditioned electric multiple unit (MRVC AC EMU) order worth ₹35,000-40,000 crore, which is set in the next six months. Other prospective tenders include additional orders Linke -Hofmann -Busch (LHB) coaches, commuter rail orders and a strong metro pipeline of 1,200 -1,300 cars in the next two years.

 

Meanwhile, India's infrastructure sector is experiencing a significant and promising transformation, catalyzed by strategic government action, growing private sector engagement, and rapid urbanization. 

 

The nation is aggressively expanding its transportation network, with a strong focus on roadways, railways, and airports. Landmark government initiatives are driving this development: PM Gati Shakti is set to revolutionize logistics with three new railway corridors, while the National Logistics Policy, Bharatmala, and Sagarmala Projects further bolster connectivity. 

 

Urban renewal is also advancing through Pradhan Mantri Awas Yojana, the Smart Cities Mission, and enhanced public transit via Metro Rail and NaMo Bharat with the capex allocation of ₹11.21 trillion towards infrastructure sector. This robust government backing creates a fertile ground for growth, and the company is strategically positioned to leverage these opportunities, IRCON said in its industry outlook.  =========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.