Indian Railway Finance Corp (IRFC): Buy Super Railway PSU Stock On August 5, New Target Price Rs 207

Leader of the railway stocks, Indian Railway Finance Corporation (IRFC) is among the top picks to buy on August 5. The new target price is likely to surpass the Rs 200 mark. IRFC is currently a little over Rs 190 and is expected to surge by nearly 8% this week. With a market value of over Rs 2.51 lakh crore, IRFC is the largest railway stock in India. YTD, the stock zoomed by over 21%.

On August 5th, the stock market is expected to go side-ways with a bearish tone amidst weak global cues as investors carry panic-selling in the Asian market on fears of a recession in the US economy after unemployment claims data surpassed Fed's limit which hinted at key interest rates to stay at multi-decadal high for a longer period. Wall Street nosedived last week on Friday as well.

Amidst this, Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has recommended buying three stocks on August 5th. One of which is the IRFC share price.

Koothupalakkal has advised buying for a target price of Rs 207 in IRFC shares with a stop loss of Rs 187.

As per Trendlyne data, the consensus recommendation from 2 analysts for Indian Railway Finance Corporation Ltd. is BUY. Further, the key fundamentals of the stock are:

- Annual Revenue rose 11.38%, in the last year to ₹26,655.92 Cr. Its sector's average revenue growth for the last fiscal year was 27.24%.

- Annual Net Profit rose 1.18% in the last year to ₹6,412.1 Cr. Its sector's average net profit growth for the last fiscal year was 26.77%.

- Stock Price rose 326.93% and outperformed its sector by 268.01% in the past year.

- Debt to Equity Ratio of 8.38 is higher than 1. This implies that company assets are financed through debt.

- Mutual Fund Holding increased by 0.37% in the last quarter to 0.55.

- Interest Coverage Ratio is 1.32, in the normal range of 1 to 1.5.

- Price to Earning Ratio is 39.1, higher than its sector PE ratio of 21.69.

- Return on Equity(ROE) for the last financial year was 13.03%, in the normal range of 10% to 20%.

- Promoter Share Holding stayed the same in the most recent quarter at 86.36%.

- Promoter Pledges are zero.

Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets. IRFC is a Schedule 'A' Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt.

Last week, on Friday, IRFC share price stood at Rs 192.30 apiece, up by 1.32% with market cap of Rs 2,51,307.37 crore. Its weekly performance was up by 3.5%.

Other two stocks recommended to buy by Koothupalakkal are:

- BUY RAMKRISHNA FORGING cmp 887 Stop Loss 870 Target 932

- BUY WEST COAST PAPER cmp 630.75 Stop Loss 615 Target 664

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.