Indian Railway Finance Corp: Top Railway Stock Advised To BUY On June 24: Intraday Target At Rs 186

Indian Railway Finance Corporation (IRFC), the largest railway stock is back in the limelight and recommended to buy for shortest-term gains which are intraday. IRFC is the top pick of Prabhudas Lilladher analysts. The railway giant stock is currently near Rs177 and ended the trading week from June 17-21 on a positive note with gains of 1.2% on BSE overall.

IRFC share price stood at Rs 176.30 apiece, up by 2.3% on BSE with a market cap of Rs 2,30,397.76 crore. The stock is near its 52-week high of Rs 199.95 apiece and has given up to 449% returns from its 52-week low of Rs 32.10 apiece.

YTD, the stock is up by 76%. In a year, however, the performance is robust with 438% gains on BSE. All-time gains of IRFC are mind-blowing by 609.46%.

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has recommended BUY on IRFC for the June 24th trading session. The analyst suggested an intraday target price of Rs 186 with a stop loss of Rs 176.32 apiece.

Last month, Prabhudas Lilladher gave a short-term outlook on IRFC. The brokerage's report said, "The brokerage added, "The RSI has shown improvement with a trend reversal indicated signalling a buy and has potential to carry on with the positive move further ahead. With the chart looking attractive, we suggest buying the stock for an upside target of 195 level keeping the stop loss of 131 level."

Also, as per Trendlyne data, the consensus recommendation from 2 analysts for Indian Railway Finance Corporation Ltd. is BUY.

Apart from this, BP Wealth also said, "The ongoing price action connotes the assumption of technical analysis of history repeating itself. IRFC's price action on the daily outlook is currently replicating its previous price pattern. The stock is consolidating at the back of a shorter-term moving average offering immediate support. This shows lower volatility diminishing the probability of an unruly move."

BP Wealth has recommended BUY for a short-term target of Rs 189.

In the case of technical, as per the data, the RSI is at 55.1 of IRFC which is stable since an RSI below 30 is considered oversold and above 70 overbought. Similar was the case with MFI which came in at 57.1. Further, the data, revealed that IRCF is trading above 8 out of 8 SMAs, however, below 4 out of 9 Oscillators in the bearish zone. The pivot point in IRFC is between Rs 174-176.

In general terms, as per Fidelity, the Money Flow Index (MFI) is a momentum indicator that measures the flow of money into and out of a security over a specified period. It is related to the Relative Strength Index (RSI) but incorporates volume, whereas the RSI only considers price.

Coming to the fundamentals of IRFC, the data from BSE showed that IRFC's price-to-equity ratio is at 35.84, and the return on equity is at 13.07%.

In FY24, IRFC declared a dividend of 15% amounting to Rs 1.5 per share. Currently, it has a dividend yield of 0.85%.

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.