This railway stock surged 770% in 3 years, 2,570% in 10 years. Is it part of your portfolio?

A Decade of Stellar Returns: Indian Railway Stock Turns Heads

In the ever-evolving world of equity markets, one sector that has consistently outperformed expectations in India is the railway infrastructure segment. A shining example within this space is Rail Vikas Nigam Ltd (RVNL)—a public sector enterprise that has transformed from a modest government company to a multibagger stock, rewarding its long-term investors with exponential gains.

RVNL’s stock has surged a staggering 770% in the past 3 years and a jaw-dropping 2,570% in the last decade, turning heads on Dalal Street and drawing interest from retail and institutional investors alike.

 RVNL’s Meteoric Rise: Key Milestones

RVNL was listed on the Indian bourses in April 2019 at a modest issue price of ₹19 per share. Today, it trades well over ₹400, representing a multi-fold increase that few PSU stocks have managed in recent memory.

Key reasons for this phenomenal rise include:

• Strategic importance in national infrastructure development

• Consistent project execution and revenue visibility

• Inclusion in the MSCI India Index

• Government’s continued push for railway modernization

• Improved financials and dividend track record

 Financial Performance and Market Standing

RVNL reported a 43% YoY rise in net profit to ₹478 crore for Q4 FY24, with revenues up 19% at ₹6,350 crore. For FY24, net profit stood at ₹1,551 crore—up 30% from the previous year.

Its robust order book of over ₹60,000 crore provides solid earnings visibility for the next several years. The company is executing major projects including metro rail construction, electrification, doubling of lines, and station redevelopment.

According to data from exchanges, the stock currently trades at a P/E ratio of around 26, which some analysts still consider reasonable, given its growth trajectory and government backing.

 Expert Views: Should You Add RVNL to Your Portfolio?

Richa Agarwal, Senior Analyst at Equitymaster, remarks,

“RVNL’s transformation from a slow-moving PSU to a high-growth railway EPC giant is a textbook case of operational leverage and sectoral tailwinds. While valuation has run up, its order pipeline and execution strength still provide room for upside.”

Prakash Diwan, Market Expert, adds,

“Railway modernization is a multi-decade theme. Stocks like RVNL are strategic plays. However, investors must balance excitement with caution, especially after such a sharp run-up.”

 Government Push to Modernize Railways

The Indian government has made massive allocations to the railways in recent budgets. The Union Budget FY25 earmarked ₹2.52 lakh crore for Indian Railways, with a focus on:

• Vande Bharat train manufacturing

• Station redevelopment

• Electrification of routes

• Private sector participation in rail freight

Being one of the key executing arms of the Railway Ministry, RVNL continues to be a prime beneficiary of these mega plans.

 Retail Investor Interest Soars

Over the past year, RVNL has seen a significant increase in retail shareholding. As per March 2025 shareholding data:

• Retail investors now own over 13.4% of RVNL

• FIIs and DIIs have steadily increased their stake

• The company has also declared regular dividends, with a yield of around 1.8%, making it attractive for conservative investors

 Risks to Watch

Despite its meteoric rise, RVNL is not without risks:

• Heavy dependence on government contracts

• Execution delays or cost overruns

• Political or policy-related disruptions

• Valuation concerns after sharp rallies

Veteran investors advise not to chase the rally blindly but to accumulate on dips with a long-term view.

 Investor Outlook: Is There Still Steam Left?

The big question—is there more upside left in RVNL stock?

For those who believe in India’s infrastructure growth story and the transformative push in the railway sector, RVNL offers a rare combination of government backing, earnings visibility, and growth momentum.

However, experts suggest portfolio diversification and staggered investments.

Investor Tip:
RVNL may not repeat a 2,570% run in the next decade, but with India’s infrastructure focus intensifying, the journey seems far from over.

RVNL’s stunning 10-year performance is a testament to the potential within India’s PSU and infrastructure landscape. It also reinforces the power of long-term investing.

If you're building a portfolio aligned with India's growth story, RVNL is a stock worth watching—just remember to board the train with due diligence.