Shares of Indian Railway Finance Corporation Ltd (IRFC) were last seen trading 1.16 per cent higher at Rs 175.10 in Tuesday's trade. At this price, the stock was down 12.43 per cent from its all-time high of Rs 199.95, hit earlier this month on June 3.
Technical analysts largely remained positive on the counter. Support could be seen in the Rs 168-162 zone. And, a decisive breach above the Rs 180-185 range is required for further upside.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has recovered significantly from Rs 151 level. It has stabilised currently near the Rs 175 zone with bias maintained positive. A decisive move past the Rs 180 range would further strengthen the trend with potential higher targets of Rs 195 and 208 levels. Support would be maintained near Rs 162."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Traders can enter the stock for an upside target of Rs 185. Keep a strict stop loss placed at Rs 168."
The counter was trading higher than the 5-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day SMA. The counter's 14-day relative strength index (RSI) came at 56.12. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 35.19 against a price-to-book (P/B) value of 4.60. Earnings per share (EPS) stood at 4.92 with a return on equity of 13.07.
IRFC borrows funds from the financial markets to finance the acquisition or creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways.
As of March 2024, promoters held an 86.36 per cent stake in the 'Navratna' PSU.
Separately, a majority of railway stocks were buzzing today after Ashwini Vaishnaw retained Railway Ministry as part of the new council of ministers in Narendra Modi-led Cabinet.