IRFC share price: Indian Railway Finance Corporation Ltd (IRFC) shares, which drew attention following the Q4 results, rose by 3.5 percent in morning trades on Tuesday. The company announced its financial performance for FY24 and Q4 FY24 on Monday, March 20, 2024.
Indian Railway Finance Corporation Ltd (IRFC) shares have surged nearly 419% over the past year, delivering multi-bagger returns.
IRFC’s share price is benefiting from the increasing capital expenditure of Indian Railways.
IRFC reported a 33.6% year-on-year increase in net profit, rising to ₹1,717 crore from ₹1,285 crore during the same period last year. In the March quarter, total revenue from operations grew by 4.5%, reaching ₹6,473 crore compared to ₹6,193 crore in the previous year.
The Miniratna public sector company’s net profit for the fiscal year ending FY24 was ₹6,412 crore, up from ₹6,167 crore in FY23.
IRFC’s share price also remains in focus following its dividend declaration. For the fiscal year 2023–2024, IRFC has recommended a final dividend of ₹0.70 per equity share of ₹10. This is on top of the ₹0.80 interim dividend. per equity share declared on November 2, 2023, bringing the total dividend for FY24 to ₹1.50 per share, based on a face value of ₹10 each.
Chandan Taparia, Head of Equity Derivatives and Technical at Motilal Oswal Financial Services, maintains a bullish outlook on IRFC’s share price. Taparia has recommended a Buy call on IRFC with a target price of ₹190, suggesting an upside potential of approximately 10% from the current level of around ₹173, at which the IRFC share price is trading. Taparia has also set a stop loss for IRFC’s share price at ₹165.
According to Taparia, IRFC’s share price has experienced a breakout on the daily chart and successfully closed above this level. There’s observable buying activity across Rail PSU Stocks, potentially supporting the ongoing upward movement. Additionally, IRFC has formed a robust bullish candle on the daily scale, with support levels gradually rising. Taparia also notes that the Momentum indicator Relative Strength Index (RSI) is positioned positively, suggesting a potential uptrend.
Manish Shah, a SEBI registered Investment Advisor, emphasized that IRFC’s share price is breaking out of a head and shoulders trend pattern, signaling a bullish development. He anticipates significant upside potential over the next few months, targeting 220 or higher. Shah recommends buying on any short-term decline to the range of 170-180 for a sustained rally, with a suggested stop loss below 155.
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Hormuz Maloo, CEO of AFco Investment, mentioned that going forward, similar to many other stocks, the movement of IRFC stock will be heavily influenced by the outcomes of elections. While he noted that fundamentally it appears overpriced, he also pointed out that there are currently no significant sell signals evident from a technical perspective.
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