Shares of Indian Railway Finance Corporation Ltd (IRFC) continued their downward spiral for the third consecutive session on Monday, plunging by 11.26% to touch a day low of Rs 136.40. While the recent decline has raised concerns among investors, it’s worth noting that the stock has still exhibited an impressive rally, surging over 360% in the past year.
In the latest financial quarter (Q3 FY24) ending December 2023-24, IRFC reported a net profit of Rs 1,604 crore, marking a 1.78% decrease from the Rs 1,633 crore recorded in the same period the previous year. Despite this dip in profit, the company saw an 8.43% increase in revenue from operations, reaching Rs 6,742 crore in Q3 FY24 compared to Rs 6,218 crore in the corresponding period of the previous fiscal year.
Financial analysts are expressing caution regarding IRFC’s stock, even with the recent correction. AK Prabhakar, Head of Capital at IDBI Capital, highlighted that the stock still appears “expensive,” urging potential investors to exercise caution. On the technical side, support is anticipated around the Rs 130 zone, with resistance levels at Rs 153.7 and Rs 162.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, emphasized the need for IRFC to breach the Rs 162 zone decisively to improve the overall market bias. Meanwhile, AR Ramachandran from Tips2trades noted the bearish outlook on daily charts, predicting that a daily close below the support of Rs 133 could potentially lead to a further decline to Rs 117 in the near term.
IRFC, a ‘Navratna’ PSU, borrows funds from financial markets to finance the acquisition or creation of assets, which are then leased out to Indian Railways or entities under the Ministry of Railways. As of December 2023, pro
