IRCTC, IRFC, IRCON and other railway stocks attempt to rebound after two-day drop

IRCTC, late on Wednesday evening also announced that it had signed an MoU with the Maharashtra State Road Transport Corporation (MSRTC) to enable the booking of the latter's buses through IRCTC's bus ticketing platform.

Railway stocks witnessed some profit booking after a sharp surge this year. Barring IRCTC, stocks like Railtel, RVNL, IRCON and IRFC have gained 80-150 percent this year.

Experts though continue to advise investors to remain cautious on these stocks considering the run-up they have had and in some instances, even book profits.

Anshul Saigal of Kotak PMS also mentioned that most of the valuation re-rating in these stocks has already taken place and whatever upside that is left in these stocks will be more of a compounding upside.

"Valuations in one of these stocks are more than building in what the expectations from earnings are likely to be going forward. Now, when this has happened, it is only logical that we should take money off the table, which is what we are doing," he said.

Saigal said some exuberance was also seen in some of these names which makes them further cautious. "We think that much of the future earnings upside is already built in into both these sectors (shipbuilders is the other) that you mentioned. And so that warrants a little bit of a caution," he added.

Read further about what other market experts had to say in their commentary on these stocks in this piece.