IRFC shares extend gains, jump 8% today; analysts remain positive

Shares of Indian Railway Finance Corporation (IRFC) Ltd continued their upward move for the third straight session on Friday. The stock surged 7.68 per cent to hit a day high of Rs 140.20. It saw heavy volumes on BSE along with the price action as around 33.92 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 13.10 lakh shares. Turnover on the counter came at Rs 46.40 crore, commanding a market capitalisation (m-cap) of Rs 1,81,456.21 crore.

A few technical analysts remained positive on the counter for the near term. "IRFC has experienced a remarkable increase of around 15 per cent this week. This indicates a potential trend reversal. The next possible resistance is seen at Rs 145, followed by the Rs 150-152 subzone," Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, suggested.

Conversely, Krishan added that there appears to be a shift in the support level, which now stands at Rs 125-120 during this comparable period.

"IRFC stock price is bullish on daily charts with strong support seen at Rs 130. A daily close above the resistance of Rs 138 could lead to 155 in the near term," said Sebi-registered independent research analyst AR Ramachandran.

Ravi Singh, SVP - Retail Research at Religare Broking, advised that the scrip looked strong and can hit Rs 150 level in the near term, adding that support will be at Rs 132.

The scrip traded higher than the 5-day (SMA) but lower than the 10-day, 20-, 30-, 50-, 100-day and 150-day but lower than the 200-day simple moving average (SMA). Its 14-day relative strength index (RSI) came at 66.83. 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 26.03 against a price-to-book (P/B) value of 3.31. Earnings per share (EPS) stood at 5 with a return on equity (RoE) of 12.70. According to Trendlyne data, IRFC has a one-year beta of 1.4, indicating high volatility.

The rail PSU posted a 2.1 per cent year-on-year (YoY) fall in its net profit, at Rs 1,682 crore, in the January-March quarter (Q4 FY25) while its revenue from operations climbed 3.8 per cent to Rs 6,722.83 crore in the same period.

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 March 2025, the government held an 86.36 per cent stake in the 'Navratna' PSU.