Shares of Indian Railway Finance Corporation Ltd (IRFC), the financial arm of the Indian Railways, slipped nearly 18% from record high in line with the stock market crash today. IRFC stock hit a record high of Rs 192.80 in early trade today. However, it fell to an intraday low of Rs 158.80, losing 17.63% from its all-time high in the afternoon session today.
Shares of IRFC saw the highest turnover of Rs 698.42 crore today with 402.97 crore shares changing hands on BSE. IRFC stock slipped 9.97% to Rs 158.80 against the previous close of Rs 176.39 on BSE. Market cap of the firm fell to Rs 2.15 lakh crore on BSE.
However, the stock is still up 439.21% from its 52-week low hit last year. The IRFC stock fell to a 52 week low of Rs 25.45 on March 28, 2023.
Despite the correction today, IRFFC stock is strongly overbought on technical charts as the relative strength index (RSI) of IRFC stands at 92.3. The IRFC stock has zoomed 401.92% in the last one year. In the current year, the stock has rallied 64.02%. The IRFC stock has a PE of 35.64, which indicates it’s overvalued compared to the sector. The sectoral PE stands at 17.25.
IRFC stock has a one-year beta of 0.9, indicating average volatility during the period. IRFC stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
"With Budget around the corner, railways stocks have been witnessing sharp gains. It could be due to anticipation of a record budgetary allocation for the sector," said Vishal Periwal, Sector Analyst (Infra) at IDBI Capital.
IRFC logged a profit of Rs 6,337 crore for the financial year 2022-23. Revenue from operations for FY23 rose 17.70 per cent to Rs 23,891 crore as against Rs 20,298 crore reported a year ago. The earnings per share of the company were Rs 4.85 at the end of FY23 as compared with Rs 4.66 in the year-ago period.
The board proposed a final dividend at 7 per cent of face value of Rs 10 each i.e. 70 paise per share for FY 2022-23.
Indian Railway Finance Corp borrows funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways.
Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
Also read: Hot stocks on January 23: IRFC, Texmaco Rail, Zee Entertainment, Airtel and more
Also read: EPACK Durable IPO booked 2.4 times day 2 so far; NIIs quota subscribed 4.5 times