IRCTC, RVNL, Texmaco Rail & Jupiter Wagons shares gain after rail fare revision announcement

Shares of railway-related companies recorded modest gains in Wednesday's trade after Indian Railways announced a marginal hike in passenger fares -- the first such increase in several years. The hike, set to take effect from July 1, 2025, is expected to impact millions of daily commuters and long-distance travellers.

The fare adjustment, though minor, signals a shift in the government's pricing strategy as the national transporter also moves towards stricter identification protocols for ticket bookings.

Under the revised structure, fares for non-AC Mail and Express trains will reportedly increase by 1 paisa per kilometre, while fares for AC classes will go up by 2 paise per kilometre.

Reacting to the development, stocks of several railway-linked companies climbed in early trade today. Shares of Indian Railway Catering and Tourism Corporation (IRCTC) moved up 1.21 per cent at Rs 771.

Rail Vikas Nigam Ltd (RVNL) rose 0.53 per cent to Rs 400.60, while Indian Railway Finance Corporation (IRFC) was up 0.47 per cent at Rs 139.25. Jupiter Wagons Ltd (JWL) gained 0.42 per cent to Rs 380.70 and Texmaco Rail & Engineering surged 1.51 per cent to Rs 168.45.

Among other gainers, Titagarh Rail Systems advanced 0.79 per cent to Rs 930.40 and IRCON International climbed 0.82 per cent to Rs 202.45. State-run rail infra firm RITES Ltd jumped 2.39 per cent to Rs 282.45.

Out of the railway pack, Antique Stock Broking has recently released reports on JWL and Titagarh Rail Systems Ltd, highlighting both companies' growth prospects in the railway and transportation sectors.

Despite the potential, the brokerage has maintained a 'HOLD' rating on JWL, citing steep valuations as a key concern. The target price has been set at Rs 431.

In contrast, Titagarh Rail continues to draw optimism from the brokerage, which has reaffirmed its 'BUY' rating, setting a target price of Rs 1,099.

Kiran Jani, Head of Technical Research at Jainam Broking, expressed a positive view on RITES and IRCTC at their current levels. "For RITES, investors can consider buying with a stop loss at Rs 255 and look for an upside target of Rs 320–325 in the short term," he told Business Today.

As for IRCTC, Jani anticipates a potential recovery. "A strict stop loss below Rs 700 is advised and we may witness a decent upside in the near term," he added.