Indian Railway Finance Corporation (IRFC) Share Price is going to have bullish rally till Rs 207, see what is the updated news.
Indian Railway Finance Corporation (IRFC) experienced a notable decline in its share price, continuing a trend of correction that has affected many public sector undertakings (PSUs). The stock closed at ₹158.00, down by approximately 2.09% from its previous close of ₹160.60. This decline is part of a broader market trend where PSU stocks in sectors such as defense and railways have seen significant selling pressure.
Main Points
The IRFC stock has been under pressure for several weeks, having fallen nearly 10% over the past month and approximately 26% from its all-time high of ₹229 reached in mid-July. Analysts attribute this downward movement to a combination of factors, including high valuations and shifts in investor focus towards more stable large-cap stocks.
Key metrics for IRFC as of today include:
- Current Share Price: ₹158.00
- Market Capitalization: Approximately ₹207,214 Crores
- P/E Ratio: 32.15
- EPS (TTM): ₹4.93
- Dividend Yield: 0.95%
- 52 Week High/Low: ₹229.00 / ₹65.75
The stock’s performance over different time frames shows a mixed picture: it has gained about 95.73% over the past year but has seen a decline of around 7.74% in the last month alone.
Technical analysts are currently advising caution regarding IRFC shares. The stock is approaching its 200-day Exponential Moving Average (DEMA), which stands at around ₹151. This level is significant as it previously served as a breakout zone, suggesting it could act as a strong support area if the price continues to decline.
Analysts recommend that investors wait for the stock to test this support level before making any buying decisions. Jigar S Patel, a senior technical analyst, mentioned that while long-term prospects for IRFC remain solid due to its role in financing railway infrastructure, the short-term outlook appears weak. He suggested that investors might find better re-entry points once the stock stabilizes at lower levels.
Anshul Jain from Lakshmishree echoed similar sentiments, advising short-term investors to consider exiting their positions now and re-entering later when the price is more favorable. He predicted a potential drop to the ₹115-₹125 range if current trends continue.
Broader Market Context
The decline in IRFC’s share price is not an isolated incident; it reflects a broader trend affecting many PSU stocks. On this day, stocks across sectors like defense and railways fell by up to 6%, even as benchmark indices like Sensex and Nifty showed positive movement due to expectations of Federal Reserve rate cuts.
Ajit Mishra from Religare Broking noted that many PSU stocks are trading at high valuations after an exceptional run in recent years, making them vulnerable to corrections. He emphasized that any shortfall in expected earnings growth could negatively impact these valuations.
Investor sentiment towards IRFC has shifted significantly in recent weeks. The recent sell-off has raised concerns among retail investors who are now more cautious about entering positions in PSU stocks that have previously shown strong growth.
Despite the current challenges, there remains a belief among some investors that IRFC will rebound as infrastructure development continues across India. The company’s role as a key financier for railway projects positions it well for long-term growth, although immediate prospects appear uncertain.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
