IRFC Share Price Update: Railway PSU Stock Under Rs 200 Hits 52-Week High, Up 388% In 6-Months, You Own?

Shares of large-cap railway PSU company Indian Railway Finance Corporation Ltd (IRFC) traded at a new 52-week high value of Rs 160.80 for the fifth consecutive day on Friday (Jan 19). IRFC shares were spotted trading 9.60% higher at Rs 160.31 per share at 1:26 pm IST today. At this price, the railway company has a market cap of Rs 2,09,553.49 crore. At this market cap, IRFC is the most valuable railway stock. Not just this, IRFC is also more valuable than 21 Nifty 50 constituents, which include Mahindra & Mahindra, BPCL, Bajaj Auto, and others.

The stock has a 52 Wk High and 52 Wk low of Rs 160.80 and Rs 25.45 respectively.

The railway stock of IRFC can be bought for less than Rs 200. Though the stock is very affordable, there is very little free float of IRFC shares available in the market as the government still owns 86.36% stake in the company. The government's larger share in the company makes the free float available in the market to just around 13.5%. The lack of availability of free float indicates that the company's shares can be at extreme points on either side.

It is worth mentioning that not only IRFC, but even other industry peers like RVNL, and Railtel have recently moved at the speed of a bullet train, thanks to the decent order book due to the government's focus on railway infrastructure.

The Indian government has already declared a fresh investment of around Rs 7 lakh crore for the development of rail infrastructure. Market experts believe that in the upcoming budget 2024, the government will focus on focus on the infrastructure sector, which is expected to benefit the railway PSU companies. The government is expected to declare a fresh infusion for the development of railway infrastructure. Besides, the railway companies are likely to report strong Q3 results.

IRFC Share Price Performance:

IRFC shares have gained 388.24% in the last six months. The last one year, 2-year returns from IRFC shares have gained 383.38%, and 581.87% respectively. Shares of IRFC have gained 60.02% in the last one month, while in this year so far the stock has gained 59.65%.

IRFC Q2 Results:

During Q2FY24, the company reported a net profit of Rs 1,549.87 crore compared to Rs 1,714.28 crore in Q2FY23. The firm's total revenue from operations stood at Rs 6,766.32 crore compared to Rs 5,809.80 crore in Q2FY23.

About IRFC:

Indian Railway Finance Corporation (IRFC) is a Schedule 'A' Miniratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India.

The company was set up in December 1986 to mobilize funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways. Since its inception, IRFC has funded the acquisition of 13,349 locomotives, 73,979 passenger coaches and 2,59,661 freight wagons. Our focused approach to supporting the expansion and modernisation of Indian Railways keeps us perfectly poised to make Indian Railways future-ready.

The cumulative funding to the Indian Railway sector by IRFC has crossed Rs. 5.50 lakh crore mark by the end of the Financial Year 2021-22. Indian Railways has embarked on a massive investment outlay for modernization, upgradation, and growth of the Indian Railway system. Correspondingly, the funding by IRFC has grown exponentially which is evident from the fact that the cumulative funding has been of the order of Rs 2.95 lakh crore during the last 5 years constituting about 61% of the total disbursement made since inception.