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

Multibagger railway stocks in focus: Railway stocks have emerged as a bright spot on Dalal Street in recent years, as investors flock to acquire stakes in these companies, driven by the Indian government's strong emphasis on the railway sector, allocating significant funds to modernize the network, improve safety standards, expand connectivity through new routes, and boost railway freight operations. 

This has resulted in a surge in the order books of companies operating in the railway sector, driving improved financial performance, which in turn has led to a sharp rally in their stock prices, and one such stock in this regard is Hind Rectifiers, which has delivered massive returns to its shareholders, emerging as one of the biggest wealth creators on Dalal Street.

The company, a leading manufacturer of power semiconductors, power electronic equipment, and railway transportation systems, has seen its share price surge from ₹154 apiece to ₹1,340 over the past three years, delivering a phenomenal return of 770%, and over the last decade, it jumped by 2570%.

Despite volatile market conditions, the stock ended May with a strong gain of 48%, as investors cheered the company’s robust March quarter performance and expanding order book, which helped sustain positive sentiment.

Indian Railways remains the company's largest customer, thanks to its long-standing reputation and strong technological offerings in locomotives and coaches. However, Hind Rectifiers is diversifying by focusing on new product development for private rolling stock manufacturers and expanding its presence in the industrial sector through upgrades to existing product lines.

Meanwhile, the company is also diversifying into the defense and aerospace sectors, securing certifications for aerospace standards and registering with defense organizations, which are expected to contribute additional revenue streams in the coming years.

Reports a PAT growth of 96% YoY in Q4 and 197% YoY in FY25

Hind Rectifiers reported a strong performance in Q4FY25, with consolidated total income rising 22% year-on-year (YoY) to ₹185.4 crore, compared to ₹151.7 crore in Q4FY24. EBITDA grew by 46% YoY to ₹20.2 crore from ₹13.9 crore, reflecting improved operating efficiencies. EBITDA margins expanded by approximately 180 basis points YoY to 10.9%, up from 9.1% in the same quarter last year.

On the bottom line, profit after tax (PAT) nearly doubled, surging 96% year-on-year (YoY) to ₹10 crore, supported by robust operational performance. For the full year FY25, the company’s total income rose 27% YoY to ₹656.8 crore, while net profit soared 197% to ₹37.1 crore, driven by an enhanced product mix, backward integration, and improved operational efficiencies.

Company reports ₹893 crore order book

According to the company’s earnings' filing, its order book stood at ₹893 crore as of March 31, 2025, primarily supported by railway sector expansion and various government initiatives.

The company believes that its robust order pipeline, coupled with the commissioning of strategic capex of ₹43 crore—aimed at backward integration and facilitating new product manufacturing at its Sinnar and Satpur facilities—positions it well for sustained future growth.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.