Railways counters gained steam this year and shares of Indian Railway Finance Corporation Ltd (IRFC) were no exception. The stock has rallied over 150 per cent in the calender year 2023. It was last seen trading 1.30 per cent higher at Rs 83.27. At this price, the multibagger scrip has gained 153.10 per cent on a year-to-date (YTD) basis. Turnover on the counter came at Rs 131.70 crore, commanding a market capitalisation (m-cap) of Rs 1,08,050.41 crore.
The stock saw huge trading volume today as 1.57 crore shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 53.30 lakh shares. There were 46,19,318 sell orders against buy orders of 6,85,412 shares.
On technical setup, support level for IRFC's stock could be seen in the Rs 80-78 zone. On the higher side, an analyst sees the counter at Rs 100 in the near term. That said, another analyst suggested booking profits at current levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "IRFC recently witnessed a consolidation breakout on daily timeframe, backed by robust volumes and soared towards its all-time high. The counter looks poised to reclaim previous highs and even enter uncharted territory in the near period. On the flip side, the support slightly shifts to the Rs 80-78 odd zone, followed by a sacrosanct demand zone of Rs 75 in the comparable period.
DRS Finvest founder Ravi Singh said one can buy IRFC shares for a target price of Rs 100, keeping stop loss placed at Rs 78.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 78 and resistance may be seen around Rs 94."
AR Ramachandran from Tips2trades said, "IRFC is bullish but also overbought on daily charts with next resistance at Rs 94. Investors should book profits at current levels as a daily close below support of Rs 80 could lead to target of Rs 68 in the near term."
The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 74.17. 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 17.70 against a price-to-book (P/B) value of 2.25.
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 September 2023, promoters held 86.36 per cent stake in the 'Navratna' PSU.
(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.)
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