Indian Railway Finance Corporation (IRFC), the country's largest railway stock, is back in trend all for good reasons. IRFC is expected to rise in both the short term and long term. Its fundamental trajectory looks healthy, while technical indicators are steady. In the short term, the target price for IRFC is Rs 156, while the long-term target price for IRFC is Rs 220.
IRFC Share Price:
IRFC shares have continued their winning streak on Tuesday. The stock stood at Rs 147.70 apiece, up by 2.50% on BSE with market a cap of Rs 1,93,021.83 crore.
This dividend-paying railway giant is a multi-bagger. IRFC is currently up by a massive 429% from its 52-week low of Rs 27.93 apiece. The highest level touched by IRFC is Rs 192.80 apiece.
YTD, IRFC share price is up by 47.16%, while in a year, the upside is around 399.83%, and its all-time gain is a whopping 494.37%.
IRFC Short-Term Target Price:
Currently, IRFC has received a 1-day trade call with the share price predicted to touch Rs 156 levels.
Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher recommends buying IRFC share price on April 24 for a target price of Rs 156. The analysts have suggested keeping Rs 144 as the stop loss.
If IRFC reaches the Rs 156 level, it would be closer to the Rs 160 mark which is expected to be the next position for further fresh upside to the highest target of Rs 220 which was set recently.
IRFC Share Long-Term Target:
Manas Jaiswal, the technical analyst has stated that IRFC shares may cross Rs 220 levels over the next six to eight months, reported CNBC-TV18. Although optimistic about IRFC, he also stated that IRFC above Rs 200 is likely to happen only when the share reaches over Rs 160 levels. He advised shareholders to exit their positions from IRFC if the share fell below the Rs 100 level.
Also, the consensus recommendation from 2 analysts for Indian Railway Finance Corporation Ltd. is BUY, as per Trendline.
IRFC Other Details:
The next big event for IRFC will be its earnings which will be announced later in May month. In the third quarter of FY24, the company registered a net profit of Rs 1,602.23 crore, down by 1.8% from PAT of Rs 1,633.45 crore in Q3FY23, but gained by 5.4% from the profit of Rs 1,549.87 crore in Q2FY24.
In the case of the top-line front, IRFC's revenue was healthy on the YoY front, but slightly down from QoQ. In Q3FY24, IRFC's revenue was at Rs 6,741.86 crore, up by 8.4% YoY but down by 0.36% QoQ. The revenue was driven by interest income which came in at Rs 2,334.84 crore in Q3FY24.
In 2023, IRFC shares paid a dividend of 15% amounting to Rs 1.5 per share.
Recently, IRFC made key changes in its top management to thrive in business. The Railway Ministry appointed Uma Ranade as Chairman & Managing Director (Additional Charge).
Holding a Miniratna status, Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways. This NBFC railway stock has also been lending to various entities in the Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.
The primary objective of IRFC 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.
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