Exciting developments in the world of Indian Railway Finance Corporation Ltd. (IRFC) have sent its shares soaring for the third consecutive session. The stock witnessed an impressive surge of 9.08%, reaching an all-time high of Rs 41.70 compared to its previous close at Rs 38.23. Trading activity was intense, with a massive volume of 2.52 crore shares on BSE, well above the two-week average of 86.02 lakh shares. The impressive turnover of Rs 101.61 crore has now boosted the company's market capitalization (m-cap) to Rs 53,789.97 crore.
Adding to the positive vibes is the recent memorandum of understanding (MoU) signed between IRFC and the state-owned RITES. This collaboration aims to explore opportunities in the railway ecosystem and the transport infrastructure sector. Under the MoU, RITES will provide consultancy and advisory services, while IRFC will extend financial support to projects and institutions linked to the Railways.
Market analysts are keeping a keen eye on IRFC, with some predicting a medium to long-term target of Rs 50, while others observe its bullish yet overbought position.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, believes IRFC is on a strong upward trajectory and may continue in the near future. He identifies the support zones around Rs 36-34 and Rs 32-31 and expects the stock to sustain its positive bias.
Manoj Dalmia, CEO of Proficient Equities, suggests investors accumulate at current levels with a medium to long-term target of Rs 50.
Meanwhile, Aditya Gaggar, Director of Progressive Shares, points out a target price of Rs 49, backed by technical charts.
The 14-day relative strength index (RSI) for IRFC stands at 85.63, indicating it may be overbought. However, with such price to earnings ratio (of 7.88) and price to book value (of 1.10), the company's stock appears promising.
Trendlyne data reveals an average target price of Rs 32, signaling a potential downside of only 21%. IRFC maintains low volatility, with a one-year beta of 0.84.
IRFC plays a vital role in providing funds to buy or build assets. These assets are then rented out to Indian Railways & other entities under Ministry of Railways.
With its shares on a thrilling ascent, IRFC continues to impress investors and industry experts alike, setting its sights on reaching the much-coveted Rs 50 level.