Indian Railway Finance Corporation (IRFC) Ltd shares on Wednesday saw a sharp uptick. The stock surged 10.11 per cent to hit an intraday high of Rs 158. It was last seen trading 8.22 per cent higher at Rs 155.30. At this price, the scrip has rallied 54.73 per cent in 2024 so far. Despite the mentioned rise, it has declined 32.20 per cent from its all-time high value of Rs 229.05, a level seen on July 15, 2024.
The state-owned firm is scheduled to announce its September 2024 quarter results on November 4. The PSU's Board will also consider interim dividend declaration to the shareholders for financial year 2024-25 (FY25). The record date for dividend entitlement will be November 12, 2024, subject to the Board's approval.
Technical analysts largely remained 'bullish' on the counter for the near term after a 'significant' drop from lifetime highs.
"The stock has seen a correction from its record high level of Rs 230 with strong support seen in the Rs 140 zone. Looking at overall chart patterns, we can see a price target of Rs 175-180 over a short period of time," Kiran Jani, Head of Technical Research at Jainam Broking, told Business Today TV.
"IRFC has experienced a significant correction. This decline has pushed the technical indicators into the oversold region, which may signal a forthcoming pullback and a potential opportunity for investors. Currently, the support range from Rs 135 to Rs 130 is expected to cushion any imminent fluctuations. If the stock can break and maintain Rs 160-165 levels, it could pave the way for a positive upward momentum in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"IRFC stock price is bullish on daily charts with strong support at Rs 143. A daily close above resistance of Rs 156 could lead to an upside target of Rs 171 in the near term," said Sebi-registered research analyst AR Ramachandran.
We foresee a trading opportunity with a target price of Rs 175 and advise maintaining a stop loss at Rs 141, suggested Kushal Gandhi, Technical Analyst at StoxBox.
The scrip traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 55.93. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 29.08 against a price-to-book (P/B) value of 3.81. Earnings per share (EPS) stood at 4.93 with a return on equity (RoE) of 13.11.
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 2024, the government held an 86.36 per cent stake in the 'Navratna' PSU.