Indian Railway Finance Corporation (IRFC) Ltd.’s shares have surged to a record high, outperforming major stocks like Tata Steel and Tech Mahindra. With an impressive 370% returns in just one year, the question arises – is now the opportune moment to invest in IRFC?
Record Market Capitalization
IRFC’s recent 9% gain has propelled its market capitalization beyond ₹2 lakh crore, making it not only the most valuable railway stock but also surpassing the market cap of 21 Nifty 50 stocks, including Tech Mahindra, JSW Steel, and Bajaj Auto.
Daily Chart Analysis
The daily chart reflects IRFC’s extraordinary performance, surging over 60% in the current year alone.
From ₹32 per share in January 2023 to closing at ₹160.85, investors have witnessed a remarkable 370% return. With the government holding a dominant 86.36% stake, the stock’s movement is significantly influenced by market dynamics.
| Stock | Market Cap (₹ Lakh Crore) |
| IRFC | 2.1 |
| M&M | 2.03 |
| Bajaj Auto | 2.02 |
| JSW Steel | 1.99 |
| LTIMindtree | 1.65 |
| Tata Steel | 1.64 |
| SBI Life | 1.41 |
| Grasim | 1.4 |
| Tech Mahindra | 1.34 |
| HDFC Life | 1.32 |
| Hindalco | 1.25 |
| Britannia | 1.22 |
| IndusInd Bank | 1.21 |
| Tata Consumer | 1.07 |
| Cipla | 1.06 |
| BPCL | 1.03 |
| Eicher Motors | 1.01 |
| Divis | 0.98 |
| Dr Reddy’s | 0.94 |
| Hero Moto | 0.87 |
| Apollo Hosp | 0.86 |
| UPL | 0.42 |
Railway Projects and Future Outlook
IRFC’s bullish trend is attributed to the success of key railway projects in India. As the government continues to focus on railway infrastructure, IRFC’s future outlook appears promising. The strategic position of the company in the railway finance sector adds a layer of stability to its growth potential.
Q2 FY2023-24 Results
While IRFC’s profit after tax for Q2 FY2023-24 slightly declined, the revenue from operations witnessed a notable 16% increase. The company’s declaration of an interim dividend further enhances its appeal for investors seeking a combination of capital appreciation and dividends.
About IRFC
Incorporated in 1986, Indian Railway Finance Corporation plays a crucial role in funding the acquisition and creation of assets for the Indian Railways through financial markets. Operating under a finance lease model, IRFC has become a prominent player in the railway finance landscape.
With its strong performance, robust finances, and ambitious growth plans, IRFC shares offer an enticing investment opportunity. The recent uptick in stock prices, coupled with solid fundamentals, paints an optimistic picture. Yet, as with any investment, thorough research is essential. Consult a financial advisor to ensure IRFC aligns with your goals and risk tolerance.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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