From mint · Sharmila Bhadoria · · 1m 10s
Railway PSU Stocks Drop 40% in Year
Railway PSU stocks fell 40% in a year as experts explain why valuations outpaced fundamentals.
In brief
Railway PSU stocks fell 40% in a year as experts explain why valuations outpaced fundamentals. Railway PSU stocks like RVNL and IRCTC dropped 40% in a year due to weak margins and order conversion despite record capital outlay. Originally reported by mint.
Railway PSU Stocks Drop 40% in Year
Railway PSU stocks have fallen sharply after valuations outpaced fundamentals.
Experts Cite Slowing Growth
Experts cite slowing growth, squeezed margins and weak order conversion as key concerns.
Record Capital Outlay
Railway capex for FY27 is a record ₹ 2.93 lakh crore despite falling stock prices.
Order Book Conversion Weak
Only about ₹ 40,000 crore of RVNL's order book is under execution with thin margins.
IRCTC Margin Drop
IRCTC's margin fell from 34.3% to 28.2% despite 18% revenue growth last quarter.
IRCON Profit Drop
IRCON's consolidated profit dropped to ₹ 92.7 crore from ₹ 164.6 crore due to joint ventures.
Stocks Down 40% in Year
RVNL, IRFC, IRCON, RITES and IRCTC down 40% in a year from peak prices.
Technical Outlook Bearish
IRCTC stock remains trapped under a heavy bearish structure with no fresh buying opportunity.
The short version
Railway PSU stocks like RVNL and IRCTC dropped 40% in a year due to weak margins and order conversion despite record capital outlay.
