Indian Railway Finance Corporation Ltd (IRFC) stock kick started the current week's trading session on a positive note, by cross Rs 150 mark. The stock is performing higher ahead of its ex-dividend date for interim dividend of 8%. IRFC is the largest railway stock with market cap nearly Rs 1.97 lakh crore. It is also a multibagger with gains of more than 100% in a year. However, IRFC shares have also corrected sharply from their 1-year highs by 34%. Is there a buying opportunity?
IRFC Share Price:
At the time of writing, IRFC shares traded at Rs 150.50 apiece, up by 1.4% on BSE. Its market cap currently is at Rs 1,96,681.02 crore. The stock's 52-week high and low is at Rs 229.05 apiece and Rs 72.71 apiece respectively.
Its price-to-equity ratio is at 29.80x, while return on equity is at 12.65%. YTD, IRFC stock is up by 50%. In a year, the stock zoomed by 104% as of now.
IRFC Dividend:
Going ahead, IRFC shares will turn ex-dividend on November 12, 2024, for its interim dividend up to 8% worth Rs 0.80 per share. This is also the record date to determine eligible shareholders for divided payout. Also, it is the first dividend of FY25.
In FY24, the company delivered dividends of up to 15% valuing Rs 1.5 per share.
Currently, it has a dividend yield of 1.01%.
IRFC Results:
In the period ending September 30, 2024, IRFC bagged PAT of Rs 3189.47 crore vis-a-vis Rs. 3095.86 crore reported in the corresponding period in the previous year. Also, the company posted profit growth of 4.41% for Q2 FY 2024-25 at Rs. 1612.65 crore vis-a-vis Rs. 1544.58 crore reported in Q2 FY 2023-24.
Total income in H1FY25 grew by 1.70% and stands at Rs 13666.22 Crore as against Rs 13437.91 Crore reported in the corresponding period of the previous year.
As of September 30, 2024, the company's net worth stood at Rs 51464.12 crore up by 9.77%, as against Rs. 46883.22 crore reported in the months ended 30th September 2023. The Assets Under Management (AUM) to end of six-month ended 30th September 2024, stands at Rs.462282.62 crore.
Experts On IRFC Stock:
After its Q2 results, Arihant Capital Markets has highlighted the following points for IRFC:
- IRFC is focused on expanding its financing portfolio beyond Indian Railways, including backward and forward linkages within the logistics and infrastructure sectors. The management has started working with entities like NTPC for project funding, signalling a move towards diversification.
- The debt-to-equity ratio is projected to stabilize as the company aims for balanced growth while exploring attractive lending opportunities with higher margins outside traditional railway projects.
- IRFC's borrowing cost remains among the lowest in the NBFC sector, enhancing its competitive position as it explores higher-margin, non-railway lending.
- IRFC's capital adequacy remains robust, providing substantial headroom for growth. IRFC maintains its zero-NPA status, driven by its low-risk, government-backed funding model.
- The management has indicated plans to venture into other infrastructure segments, aligning with national infrastructure growth priorities and leveraging IRFC's competitive lending rates.
Meanwhile, Sumeet Bagadia, Executive Director & Head of Technical Research at Choice Broking, has set a short term target of Rs 175 on IRFC, with stop loss of Rs 140.
Click it and Unblock the Notifications
Sign in with Google