IRFC vs RVNL vs RailTel: Which railway PSU stock to buy for long-term?

Stocks to buy for the long term: PSU stocks have remained under the sell-off heat for years. However, after the recent bloodbath on Dalal Street, some railway PSU stocks sign a trend reversal pattern on the technical chart. As the Government of India (GoI) showcases a special focus on railway infrastructure projects, some railway stocks are witnessing discounted buying. IRFC, RVNL, RailTel, CONCORD, and Ircon International shares are some of them.

According to stock market experts, these railway PSU stocks have undergone a significant correction, and most quality railway stocks are available at an attractive discount. They said that the trigger for the sell-off in railway stocks was mainly after the Union Budget 2025 when no such big railway infra project was announced. However, the Union Cabinet recently declared four new railway infra projects worth ₹18,658 crore. They said the cabinet decision has triggered buying interest among the market bulls, and buying such stocks at such a whopping discount can be a good bet for long-term investors.

Triggers for railway PSU stocks

“Railway PSU stocks came under the radar of Indian stock market bulls last week, when the Union Cabinet approved four railway infrastructure projects worth ₹18,658 crore. However, bulls didn’t respond at the beginning of the week due to Black Monday, but some value buying was witnessed on Friday. So, the uptrend may continue in railway PSU stocks,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Avinash Gorakshkar of Profitmart Securities said that IRFC shares should be given priority over other railway PSU stocks as it is in the railway infra financing and has business with most of the railway stocks.

IRFC vs RVNL vs RailTel: Which is better?

Comparing the three railway PSU stocks, Prashanth Tapse, Senior Vice President of Research at Mehta Equities, said, “For conservative investors, IRFC stands best in terms of its business model, which is a dedicated financing arm of Indian Railways. We believe strong government backing and a low-risk business model with healthy dividend yields in the long term give IRFC a better long-term pick. While, if the investors wish to take short-term risk for long-term investment, we believe RVNL looks a better long-term candidate as it is a key player in Indian railways modernization including track laying, electrification, and station modernization.”

Prashanth Tapse advised high-risk investors to look at RVNL shares, saying, “A strong order book and consistent revenue growth along with government vision would help RVNL perform well in the long term. If investors wish to build a balanced portfolio focusing on railways, they should have both stocks in the long-term portfolio.”

IRFC share price target

On what the technical chart suggests, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Railway PSU stocks are showing signs of revival after deep corrections. Among them, IRFC share price appears to be the strongest candidate. IRFC share price has corrected 52% over 33 weeks but is now forming a higher low on the weekly chart, backed by a bullish Marubozu candle — a sign of strong buying interest. With visible relative strength, a bounce toward ₹140 looks likely.”

RVNL share price target

Speaking on the outlook of RVNL share price, Anshul Jain said, “RVNL share price has also shed 52% in 38 weeks and recently tested a major support at ₹311. It also formed a bullish Marubozu pattern, suggesting potential for a rebound to ₹388.”

RailTel share price target

“RailTel share price, down 56% in 39 weeks, has made a failed breakdown against a 7-week consolidation zone at ₹275. A technical bounce to ₹333 could be on the cards,” said Jain.

Batting in favour of IRFC shares, Anshul Jain said, “All three are showing bottoming signs, but IRFC stands out with better structure and strength. For traders looking to ride the railway rebound, IRFC may offer the smoothest track.”

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.