IFCI shares rallied 49% in 5 sessions; what's next for this NBFC PSU?

Shares of state-run shadow lender IFCI Ltd continued their stellar uptrend for the fifth consecutive session, rising 6.16 per cent to hit a high of Rs 74.50 in Thursday's trade. At day's high price, the stock has ascended by 49.18 per cent in five trading days. IFCI topped volume charts today as around 2.05 crore shares worth Rs 148.38 crore were last seen changing hands on BSE.

In terms of earnings, the state-owned non-banking financial company (NBFC) recorded a 70.46 per cent year-on-year (YoY) rise in its consolidated net profit for the January-March 2025 (Q4 FY25) quarter. During the three months under review, profit came at Rs 227.28 crore as against Rs 133.33 crore in the corresponding period last fiscal. Revenue from operations, however, slipped 31.68 per cent YoY to Rs 413.61 crore in Q4 FY25 from Rs 605.42 crore in the year-ago period.

A few analysts said there could be a possibility of profit booking by investors following a particular sharp run in the last three weeks. That said, near-term support may be seen at Rs 68 level.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "IFCI has experienced a significant increase in May, particularly in the last three weeks. There have been positive crossovers, suggesting a favourable short-term trend. However, the vertical nature of this rally raises the possibility of profit-taking, which should be duly considered. The immediate support levels have shifted to the subzone of Rs 62-60, followed by a support range of Rs 58-55. Conversely, the Rs 70-75 zone presents a robust resistance level in the near term."

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), suggested that immediate support will be at Rs 68 while resistance will be at Rs 75. "A decisive move above Rs 75 may trigger a further upside towards Rs 77. The expected trading range will be between Rs 65 and Rs 77 for the short-term," Patel also said.

Sebi-registered independent research analyst AR Ramachandran advised that IFCI is bullish but overbought on daily charts with the next resistance at Rs 77. "Investors should be booking profits as a daily close below support of Rs 70 could lead to a downward target of Rs 58 in the near term," Ramachandran added.

IFCI is a state-owned NBFC and the government held a 72.57 per cent stake in it as of March 2025.