IRFC shares see profit-booking, clock high turnover; price targets, resistance, stop loss & more

Shares of Indian Railway Finance Corporation Ltd (IRFC) have zoomed 137% in three months. The railway sector stock, which closed at Rs 72.77 on October 30 last year, was trading at Rs 171 in the afternoon session on Monday. The multibagger stock hit a record high of Rs 192.80 on January 23, 2024. IRFC shares are trading in the overbought zone as the relative strength index (RSI) of IRFC stands at 79.5.

Shares of IRFC saw the highest turnover of Rs 248.77 crore today with 144.78 lakh shares changing hands on BSE. In the afternoon session today, IRFC stock fell 2.69% to Rs 169.26 against the previous close of Rs 173.94 on BSE. Market cap of the firm slipped to Rs 2.23 lakh crore on BSE. The stock is up 572% 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.

IRFC stock has zoomed 445.45% in the last one year. In the current year, the stock has rallied 70.37%. The IRFC stock has a PE of 36.83, which indicates it’s overvalued compared to the sector. The sectoral PE stands at 17.37.

IRFC stock has a one-year beta of 1, 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.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “The stock has witnessed a strong bull run in the last 2-3 weeks right from Rs 100 levels to hit the high of 192 zone where it has witnessed some resistance and subjected to some profit booking to slip down to Rs 151 zone, where it has taken support and bounced back. Further strength is visible to carry on the positive move and can retest the previous high of Rs 192 levels with near-term support maintained near Rs 151-154 levels as of now. A decisive breach above Rs 192 can carry the stock to next targets of Rs 206 and Rs 221 respectively with strength sustaining.”

Gaurav Bissa, Vice-President, InCred Equities said, "IRFC has been in a very strong momentum has moved swiftly from its previous swing high of Rs 95 to almost 200. While it has witnessed some profit booking, the overall trend remains positive. It has been forming a pattern wherein it consolidates in a range for a few weeks which is followed by breakout. Those who have bought the stock can partially book profits here as RSI is on extremely overbought zone on the weekly charts keep trailing stop loss at Rs 145 level. Fresh entry is not advised as price and momentum indicators remain in overbought zones.”

Vaibhav Kaushik, Research Analyst, GCL Broking said, "Ahead of budget, strong buying coming in railway stocks. Stock can reach up to Rs 200 levels. Keep a stop loss of Rs 134."

"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 29: IREDA, SBI Cards, IRB Infra, IRFC and more

Also read: SpiceJet shares jump 6%; airline completes first tranche of fundraising of Rs 744 crore