Indian Railway Finance Corp Dividends: Prabhudas Lilladher Recommends Buy For TP Of Rs 90, 24% Upside Seen

Indian public sector undertaking, Indian Railway Finance Corporation (IRFC) kick-started the current trading week on a positive note with shares rallying by nearly 3% on Monday. Prabhudas Lilladher is the latest to recommend 'Buy' on IRFC shares for a target price of Rs 90. From the current price level, it would be an upside of nearly 24% ahead. IRFC shares will be in focus ahead of the record date this week for an 8% dividend payout.

On BSE, IRFC shares ended at Rs 72.84 apiece, up by 1% with a market cap of Rs 95,191 crore. The stock has gained by at least 2.9% with an intraday high of Rs 74.15 apiece during the trading hours.

IRFC shares will turn ex-dividend on November 10 for an 8% interim dividend for FY24. This will also be the record date to determine eligible shareholders for the dividend benefits.

As per the regulatory filing, IRFC declared an interim dividend of Rs 0.80 per share having a face value of Rs 10 each. It said, "the "Record date" for determining eligibility of shareholders for payment of the said interim Dividend, as declared by the Board is Friday,10th November 2023."

Further, the company said, the dividends will be paid in the account of the shareholder(s) or the dividend warrant(s) in respect thereof will be dispatched within thirty (30) days from the date of declaration of the interim dividend.

On Monday, in its technical pick report, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed a decent correction recently and has taken support near 68 levels which is an important base and also the 50 EMA level lies in that zone."

She added, "The stock has indicated a trend reversal from that level and has improved the bias to anticipate further upside in the coming days." Adding, she said, "The RSI also has reversed from the oversold zone and has signalled a buy."

Hence, she concluded, "We suggest to buy and accumulate the stock for an upside target of 90 levels keeping a stop loss near 64."

During Q2FY24, the company posted a net profit of Rs 1,549.87 crore as against Rs 1,714.28 crore in Q2FY23 and Rs 1,556.57 crore in Q1FY24. Total revenue from operations stood at Rs 6,766.32 crore compared to Rs 5,809.80 crore in Q2FY23 and Rs 6,679.17 crore in Q1FY24.

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.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor 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.