Indian Railway Finance Corp (IRFC): BUY Top Railway Stock For Target From Rs 180-240 After 443% Gains In 1-Yr

Railway stocks are buzzing ahead of the Union Budget 2024 announcement in July after PM Modi's third win. This budget, expectations of capital allocation to the railway sector, and transformative measures will be keenly watched. One of them is also Indian Railway Finance Corporation (IRFC) which is currently the largest railway stock in terms of market cap.

The IRFC share price is currently at Rs175.55 apiece with a market cap of Rs 2,29,417.62 crore. The stock's 52-week high and low is at Rs 199.95 apiece and Rs 32.10 apiece respectively.

YTD, IRFC stock is up by 75%. However, in a year, the stock zoomed by 442.83% on BSE. The stock was around Rs 32 levels a year ago. IRFC was also among the top winners in 2023, which journeyed from being a smallcap to midcap and further to emerge as largecap currently in a span of 1 year.

Going ahead, Technical Analyst Manas Jaiswal told CNBC Awaaw that investors should hold onto their position in IRFC shares if they are holding them. He added that once IRFC crosses Rs 200 mark, the stock will enter unchartered territory, post which it can see levels of ₹235 on the upside. The stop loss is set at Rs 159.

Also, as per Trendlyne data, the consensus recommendation from 2 analysts for Indian Railway Finance Corporation Ltd. is BUY.

While selecting IRFC among its super 7 picks for June 2024, BP Wealth also said, "The ongoing price action connotes the assumption of technical analysis of history repeating itself. IRFC's price action on the daily outlook is currently replicating its previous price pattern. The stock is consolidating at the back of a shorter-term moving average offering immediate support. This shows lower volatility diminishing the probability of an unruly move."

BP Wealth has recommended BUY for a short-term target of Rs 189.

In FY24, IRFC declared a dividend of 15% amounting to Rs 1.5 per share. Currently, it has a dividend yield of 0.85%.

Indian Railway Finance Corporation (IRFC) was set up on 12th December 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets. IRFC is a Schedule 'A' Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt.

The primary objective of IRFC is to meet the predominant portion of the 'Extra Budgetary Resources' (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company's principal business therefore is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.