Indian Railway Finance Corporation (IRFC) is the largest railway stock in the overall sector in terms of market share. Currently, IRFC has a market cap of more than Rs 2.06 lakh crore. IRFC was a star performer in 2023, climbing from the small-cap ladder to mid-cap and further to the large-cap as well. In the year 2024, the stock has seen resilient growth in double-digit as well, and there is room for further buying, especially for short-term gains in the last month of the year.
IRFC Share Price:
Last week, on December 6, IRFC share price ended at Rs 157.95 apiece, up by 4.74% on BSE, with a market cap of Rs 2,06,417.05 crore. The stock's 52-week high is at Rs 229.05 apiece, while it is already trading more than double its 52-week low level of Rs 74.70 apiece.
During the trading week from December 2-6, IRFC shares zoomed by 6.04%. While YTD, the stock is up by 57.37%. In a year, the stock is a multi-bagger with gains of 106.25%.
IRFC Fundamentals:
According to Trendlyne data, the stock price rose 107.76% and outperformed its sector by 75.68% in the past year. Also, its Return on Equity(ROE) for the last financial year was 13.03%, in the normal range of 10% to 20%. Additionally, Promoter Share Holding stayed the same in the most recent quarter at 86.36%, while Promoter Pledges were zero.
Among the drawbacks in fundamentals, Trendlyne data pointed out that IRFC's Debt-to-Equity Ratio of 8.38 is higher than 1, which implies that company assets are financed through debt. Also, its Price Earning Ratio is 31.71, higher than its sector PE ratio of 21.39. Moreover, Mutual Fund Holding decreased by 0.4% in the last quarter to 0.15.
In less than 5 years, the company has delivered about 8 dividends to its shareholders. In the last 12 months, the company distributed about Rs 1.50 dividend per share. Currently, it has a dividend yield of 0.95%.
Going ahead, Axis Securities sees short-term gains in IRFC and hence recommends buying.
Axis Securities On IRFC:
The brokerage has recommended BUY on IRFC for a target price of Rs 168 with a stop loss of Rs 152. The entry point suggested is around Rs 157.
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.
Click it and Unblock the Notifications
Sign in with Google