IRFC Shares Have Recovered 87% Of Their 52-Week Low; Will They Reach Rs 50?

IRFC shares have increased by 85% in the previous year, with the majority of the gains coming in 2022. The stock has gained only 17.63% so far this year.

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Shares of Indian Railway Finance Corporation Ltd (IRFC), the Indian Railways’ finance arm, have increased by 85% in the previous year, with the majority of profits expected in 2022. The stock has gained only 17.63% so far this year. The IRFC stock has a PE of 7.88, indicating that it is expensive in comparison to the sector. The sectoral PE is now 5.91. The railway stock closed at a record high in the previous session, which corresponds to its high PE score. On the BSE, IRFC shares finished 9.04% higher at Rs 38.23, compared to the previous closing of Rs 35.06.

The IRFC stock reached a new high of Rs 38.50 during the session, increasing 9.81% intraday. IRFC shares started higher on Monday at Rs 35.60. The stock finished higher for the third consecutive session, bringing its three-day gains to 10%. On the other side, on July 29, 2022, the railway stock reached a 52-week low of Rs 20.45. To date, it has recovered 87% of its annual low.

IRFC has a relative strength index (RSI) of 65.8, suggesting that it is neither overbought nor oversold. The one-year beta of IRFC stock is 0.8, showing relatively low volatility throughout the time. The IRFC stock price is above the 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages.

A total of 277.81 lakh shares of the company were traded, resulting in a turnover of Rs 103.62 crore. On the BSE, IRFC’s market capitalization increased to Rs 49,960 crore.

Here’s what experts had to say about the stock’s prospects.

“From a technical standpoint, Indian Railway Financial Corporation (IRFC) is facing a strong hurdle at Rs 37, a strong close above that level will be considered as a Cup and Handle Formation breakout, and according to the pattern, the target arrives at Rs 49,” said Aditya Gaggar, Director of Progressive Shares. The leading indicator, RSI, has already broken out, signaling that the price will follow suit. Trend-following indicators like ADX and MACD have already provided a favorable signal.”

“IRFC is bullish but overbought on the Daily charts,” stated Abhijeet of Tips2Trades, “with next resistance at Rs 39.25.” A daily closing below Rs 35.3 support might go to Rs 32 in the short future.”

“IRFC has seen good traction over the last couple of trading sessions, leading to a strong surge in the counter to clock new highs,” stated Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One. On the technical aspect, the counter has experienced a volume-based breakthrough around Rs 36 odd levels, and the run is projected to continue in the same time. In terms of levels, the Rs 36-34 zone is expected to buffer any short-term wobble, while crucial support is around the Rs 32-31 consolidation zone. On the other hand, unless the counter can persist above the support zones, it is likely to trade with a bullish bias and may continue its march into new territory.”

“Indian Railway Finance Corporation (IRFC) has crossed the current level of Rs 36.75 multiple times and is trading above the resistance level,” stated Manoj Dalmia, CEO of Proficient Equities. Over the last three months, the firm has returned 12%, and it has also set a new 52-week high. When this level is passed over 38, investors might expect major swings. Investors might assume a medium to long-term aim of Rs 50 and can accumulate now.”

For the fiscal year 2022-23, IRFC had a profit of Rs 6,337 crore. Revenue from operations increased 17.70% to Rs 23,891 crore in FY23, up from Rs 20,298 crore the previous year. The company’s earnings per share were Rs 4.85 at the end of FY23, compared to Rs 4.66 the previous year.

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For fiscal year 2022-23, the board recommended a final dividend of 7% of the face value of Rs 10 per share, or 70 paise per share.

Profit for the March 2023 quarter fell 10.9% to Rs 1,328 crore from Rs 1,492 crore the previous year. In the March quarter, consolidated income from operations climbed 5.14 percent to Rs 6,236 crore, up from Rs 5,931 crore the previous year. The corporation has yet to declare its results for the second quarter of 2023.

Indian Railway Finance Corp borrows money from the financial markets to support the acquisition/creation of assets, which are subsequently leased to Indian Railways or any other organisation under the Ministry of Railways.

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