Indian Railway Finance Corp: Top Miniratna Railway Stock Hot Bet In Short Term; Axis Direct Sets Rs 155 TP

Axis Direct has made positional target for 5-15 days on IRFC. The brokerage sets a target price of Rs 155.

According to Axis Direct, the entry price range in IRFC is around Rs 138.60 apiece to Rs 140 apiece. While its stop loss is set around Rs 136 apiece.

Notably, the brokerage set Rs 155 target six days ago, so from current price level, there is potential of 8.31% upside in IRFC in the short term.

On NSE, IRFC share price stood at Rs 143.10, broadly flat after market hours. The stock's 52-week high and low is at Rs 192.80 and Rs 25.40 apiece.

Axis Direct's view on IRFC remains BUY.

Indian Railway Finance Corporation Limited (IRFC) was incorporated as a public limited company on 12th December 1986 by the Ministry of Railways, as a wholly Government owned public financial institution to raise resources to meet the developmental needs of the Indian Railways.

In Q3FY24, IRFC's profitability was a mixed bag with a decline on the YoY level but an upside on the QoQ front. In Q3FY24, the largest railway company in terms of market share, registered a net profit of Rs 1,602.23 crore, down by 1.8% from PAT of Rs 1,633.45 crore in Q3FY23, but gained by 5.4% from the profit of Rs 1,549.87 crore in Q2FY24.

Meanwhile, IRFC's revenue was healthy on the YoY front, but slightly down from QoQ. In Q3FY24, IRFC's revenue was at Rs 6,741.86 crore, up by 8.4% YoY but down by 0.36% QoQ. The revenue was driven by interest income which came in at Rs 2,334.84 crore in Q3FY24.

Overall, in FY24, IRFC has paid dividends up to 15% amounting to Rs 1.5 per share to its investors.