Railway sector stocks witnessed significant movement on Wednesday, with Jupiter Wagons leading the rally by gaining over 10%. Other key players such as RailTel, IRCON, and RITES also posted gains amid positive market sentiment.
RailTel Shares Rebound After Initial Drop
RailTel Corporation’s shares faced early pressure following news that the Bihar Education Project Council canceled orders worth Rs. 609.56 crore, causing the stock to dip up to 2.5% in early trading. However, the stock recovered sharply, and by 1:30 pm, RailTel was trading 2.7% higher at Rs. 349.30. Despite today’s rebound, the stock has declined approximately 4.5% over the past five trading sessions.
Jupiter Wagons Shines as Top Performer
Jupiter Wagons emerged as the top performer in the railway sector today, with its shares trading at Rs. 325.15 around 1:30 pm, marking a 10.52% increase for the day. The brokerage firm Systematix maintained a BUY rating on the stock with a revised target price of Rs. 360. The firm highlighted Jupiter Wagons’ focus on its core freight wagon business, which has historically delivered steady margin expansion, expecting revenue to double and EBITDA to turn positive by FY27.
IRCON Gains on Auditor Appointment News
IRCON International’s shares also gained momentum, trading at Rs. 165.14 per share, up 1.78% on the BSE. The rise followed the company’s announcement of appointing statutory foreign branch auditors for FY 2025-26, after receiving approval from the Comptroller and Auditor General of India (CAG), bolstering investor confidence.
RITES Shares Rise on Strong Order Book
RITES shares posted healthy gains, rising 2.91% to Rs. 233.25. According to IDBI Capital, the company reported a largely flat operating performance in Q1 FY26 with marginal growth. RITES is currently focused on executing a large order book valued at Rs. 87 billion as of Q1 FY26. The brokerage has set a target price of Rs. 281, maintaining a HOLD rating, citing a strong order book, cash-rich balance sheet, steady dividends, and a delayed but anticipated revenue ramp-up.
Analysts attribute the overall positive sentiment in railway stocks to improved order inflows, strategic focus on core businesses, and confidence in future revenue growth.
