Kamaal Dhamaal Malamaal Is Multibagger Railway Stock IRFC; Turns Rs 1 Lakh To Rs 4.5 Lakh In 10 Months

Indian Railway Finance Corporation (IRFC), a financial services provider to Indian Railways projects, in recent times has grabbed the attention of many investors. Since 2023, IRFC has been known for its strong fundamentals, overblown bulls and crazy wealth-creating railway stock. In short, IRFC is better described as Kamaal (amazing), Dhamaal (blast), and Malamaal (rich) stock. Last week, IRFC touched a new 52-week high, extending its winning streak and now even giving over 4.5x return on investment since IPO. Investors and experts are gaga over IRFC.

On BSE, IRFC shares ended at Rs 113.38 apiece, up by 6.09% on Friday last week. During this trading session, IRFC touched a new 52-week high of Rs 114 apiece.

Compared to its peers like biggies namely Bajaj Finance, Bajaj Finserv, Jio Financial Services, and Power Finance Corporation, the share price of IRFC is a star performance. In 1-year, IRFC shares have zoomed by 242.54% on BSE compared to Bajaj Finance which gained by 27.35%, Bajaj Finance advanced by 19.31%, Jio Financial with a meagre 1.37% upside, and CPSE PFC shares which soared by 233.83%.

Also, IRFC shares have skyrocketed by nearly 348% from a 52-week low of Rs 25.45 apiece which was recorded on March 28, 2023. Let's suppose, that an investor pumped in Rs 1 lakh for IRFC shares during its 1-year low levels, then in less than 10 months, their investment value has surged to Rs 4,47,930 -- a return of Rs 3,47,930 during this period.

IRFC was listed on BSE and NSE on January 29, 2021. The company's IPO was launched from January 18 to 20 2021, and it oversubscribed by 3.49 times on the final day. The IPO issue price was set at Rs 26. From the issue price, IRFC shares are currently up by 338.5% on BSE.

IRFC's stock price indicators are broadly positive to neutral. was incorporated as a public limited company on 12th December 1986 by the Ministry of Railways, as a wholly Government-owned public financial institution to raise resources to meet the developmental needs of the Indian Railways.

As per Trendlye, the consensus recommendation from 2 analysts for the Indian Railway Finance Corporation is BUY. key factors for IRFC stock analysis are:

- Stock Price rose 246.26% and outperformed its sector by 206.35% in the past year.

- Interest Coverage Ratio is 1.36, in the normal range of 1 to 1.5.

- Promoter Share Holding stayed the same in the most recent quarter at 86.36%.

- Promoter Pledges are zero.
- Return on Equity(ROE) for the last financial year was 13.93%, in the normal range of 10% to 20%.

- Price to Earning Ratio is 24.42, lower than its sector PE ratio of 25.24.

IRFC is yet to announce its financial results for Q3FY24. But in Q2FY24, the company posted a net profit of Rs 1,549.87 crore as against Rs 1,714.28 crore in Q2FY23 and Rs 1,556.57 crore in Q1FY24. Total revenue from operations stood at Rs 6,766.32 crore compared to Rs 5,809.80 crore in Q2FY23 and Rs 6,679.17 crore in Q1FY24.

IRFC's sole objective is to raise money from the debt Capital markets to part-finance the plan outlay of Indian Railways. The money so made available is used predominantly for the acquisition of new rolling stock assets to be leased to Indian Railways or developing railway Infrastructure. IRFC's funding has supported technology infusion in the Railways. For instance, it has enabled the Ministry of Railways to purchase new-generation Locomotives from General Motors (USA) along with the transfer of technology and new-generation Coaches from Germany for use in high-speed trains.

Further, Trendlyne data highlighted that IRFC is currently overbought but its day-momentum is strong. The Day Trendlyne Momentum Score on IRFC is 76.9, as stocks with a score above 70 are considered technically Strong. But its RSI and MFI are at 81.9 and 75.1 respectively, which means that it may show pullback as the stock is overbought. Further, IRFC's weekly average delivery volume is 25.72%, while it is trading above 8 out of 8 SMAs, and above 7 out of 9 Oscillators in the bullish zone.

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.