Groww Nifty India Railways PSU Index Fund(IDCW)

Ticker: mf17629
Decent 66/100

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Business Overview

The Groww Nifty India Railways PSU Index Fund (IDCW) is a mutual fund designed to track the performance of the Nifty India Railways Index. It is ideal for investors looking to gain exposure to the growing railway sector in India. This fund matters as it allows you to invest in a diversified portfolio of Public Sector Undertakings (PSUs) in the railway industry, which is pivotal for India's infrastructure development. With a focus on long-term growth, this fund offers a unique opportunity to participate in a vital sector of the economy.

  • Tracks Nifty India Railways Index
  • Focus on Public Sector Undertakings
  • Ideal for long-term investors
  • Exposure to a growing infrastructure sector
  • Diversified investment in railway companies

Investment Thesis

The Groww Nifty India Railways PSU Index Fund presents a compelling investment opportunity due to its strong backing from a credible promoter group, significant growth potential in digital services, and attractive valuations compared to its peers. This fund is well-positioned to capitalize on the expanding railway sector in India.

  • Strong promoter group enhances credibility and trust.
  • Digital services growth offers substantial upside potential.
  • Attractive valuation relative to peer funds.
  • Focus on India's expanding railway infrastructure.
  • Diversified exposure to key public sector undertakings.

Opportunity vs Risk

Opportunities
  • Strong growth in Indian railways
  • Government investment in infrastructure
  • Diversification through PSU exposure
  • Potential for long-term capital gains
Risks ⚠️
  • Market volatility affecting returns
  • Regulatory changes in railways
  • Dependency on government policies
  • Economic slowdown impact on performance

Peer Perspective

Groww Nifty India Railways PSU Index Fund trades at a slight premium compared to peers like ICICI Prudential and SBI, necessitating consistent margin stability and accelerated growth for a potential rerating.
📊 Stock Investment Checklist (100 Points)
Groww Nifty India Railways PSU Index Fund(IDCW) • Updated: 2025-10-01 05:59:52
  • 10
    Business
    High
    Railway sector has growth potential but faces regulatory challenges.
  • 10
    Growth
    High
    Moderate revenue growth observed, but profitability inconsistent.
  • 10
    Profitability
    High
    ROE and ROCE are below industry average, cash flow issues noted.
  • 8
    Valuation
    High
    Valuation metrics are higher compared to peers.
  • 7
    Balance
    High
    Debt levels manageable, but liquidity concerns exist.
  • 6
    Governance
    Good
    Promoter holding is stable, but transparency could improve.
  • 5
    Drivers
    Good
    Limited growth drivers identified, execution risks present.
  • 5
    Technicals
    Good
    Weak momentum and liquidity issues in the market.
Final Score & Verdict
Score 66 / 100 • Decent
The fund shows potential in a growing sector but faces challenges in profitability and valuation metrics.