IRFC: Top Railway Stock Declares Rs 0.70/Sh Dividend, Rs 50,000 Cr Fundraise, Q4 PAT Up 34%; Axis Sec Says BUY

IRFC, the railway behemoth, has declared its Q4 earnings under which it posted double-digit growth in both the topline and bottom-line front. Furthermore, IRFC announced final dividend rewards for FY24, along with a massive fundraising plan of Rs 50,000 crore. This top railway stock will be in focus eventually on Tuesday. Brokerage Axis Securities has recommended buying for short-term targets.

IRFC Q4 Results:

India's largest railway stock, Indian Railway Finance Corporation Ltd (IRFC) has announced its Q4 and full-fiscal results for 2023-24. The top railway projects financier reported a net profit of Rs 1,717 crore in Q4FY24, registering a growth of 33.6% from the net profit of Rs 1,285 crore in the same period a year ago.

Also, its total revenue came in at Rs 6,473 crore, witnessing a marginal upside of 1.73% from Rs 6,193 crore in Q4FY23.

For the entire fiscal FY24, the company's PAT stood at Rs 6,412 crore, surging from Rs 6,167 crore.

IRFC Dividend:

IRFC has recommended the final Dividend of Rs 0.80 per share having a face value of Rs 10/- each for the financial year 2023-24, subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).

This dividend payout is in addition to the Interim Dividend of Rs 0.80/- per equity share declared on 2nd November 2023, thereby making the total dividend for FY24.

In total, IRFC's dividend payout for FY24 is to the tune of Rs 0.70 per share.

IRFC Fundraising:

Further, IRFC's board also approved raising of resources for the financial year 2024-25 up to Rs. 50,000 crores from both domestic and international markets, through a prudent mix of Tax-Free Bonds, Taxable Bonds on private placement or public issue basis, including Capital Gain Bonds u/s 54EC of Income Tax Act, Government Guaranteed Bonds, Govt. Serviced Bonds, zero coupon bonds, Perpetual bonds, subordinated bonds, market-linked bonds, Environment, Social and Governance (ESG) Bonds, Separately Transferable Redeemable Principal Parts (STRPP) or any other bonds/debentures.

The fundraising will be on a private placement or public issue basis, with Loans from Banks and other Financial
Institutions, Institutional Financing, Securitization of future leases I.eceivables, ECBs etc. at appropriate times, keeping in view, the market conditions and requirement of funds of the Company for meeting the fending requirement of Indian Railways, if any, new business activities, committed liabilities, refinancing of existing loans and for other general corporate purposes in one or .more tranches during the financial year.

IRFC NCDs:

Also, the board has approved the policy namely "Policy for Claiming Unclaimed interest/redemption amount of non-convertible securities.

IRFC Share Price:

This railway giant stock ended at Rs 173.20 apiece, up by 2.61% in the special trading session on Saturday, with a market cap of Rs 2,26,346.52 crore.

This week alone, from May 13 to May 18th, IRFC shares have skyrocketed by a whopping 18.4% on BSE. YTD, the stock is up by 73% on the exchange. In a year, IRFC shares have zoomed by a breathtaking 417.46% as of now. Its all-time gain is a massive 598%. The stock was merely at Rs 24.85 on January 29, 2021.

BUY IRFC Shares:

Currently, Axis Securities has made a positional recommendation in IRFC for short-term gains. The brokerage has suggested an entry price of Rs 174 in IRFC, for gains up to 7% in less than 2 weeks. That being said, the brokerage has recommended a target price of Rs 185 with a stop loss of Rs 169 and a timeframe of 5-15 days after Saturday's session.

Holding a Miniratna status, Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways. Its primary objective is to meet the predominant portion of the 'Extra Budgetary Resources' (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company's principal business therefore is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.