Indian Railway Finance Corp (IRFC): Super Railway Stock Advised To Buy On July 8; Intraday Target At Rs 200

Indian Railway Finance Corporation (IRFC), India's largest railway stock, is an hot pick to buy during the trading session of July 8th. Prabhudas Lilladher has set a target price of Rs 200. During the trading week from July 1-5, IRFC shares zoomed by at least 9.3% on BSE. But its YTD performance sees robust gains of 87.15%.

Currently, valued at Rs 188.30 apiece on BSE with market cap of Rs 2,46,079.97 crore, IRFC stock has potential of over 6% gains next week.

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.

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.

In May 2024, --S&P Global Rating revised IRFC's rating outlook to "positive" from "stable''. The rating actions follow a similar action on the sovereign credit rating in India.

As per S&P, the ratings on lFRC reflect the company's critical role and Integral link with the government. Ongoing governmental support--in forms Including guarantees, budgetary support, and lease agreements--supports timely debt payment. S&P believes IRFC will continue to play a critical role in the Indian government's economic development plans and policies.