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23 April 2025

Indian Railway Finance Shares Surge Amid Positive Market Sentiment

The stock rises as IRFC reschedules board meeting to declare Q4 earnings and borrowing plans.

Indian Railway Finance Corporation (IRFC) shares opened strong on April 22, 2025, climbing 0.89% to ₹132.60 in early market action. This rise reflects continued optimism in public sector financial stocks following a solid week of performance across the PSU segment.

In early trading, the stock touched a high of ₹133.15 before stabilizing slightly below that peak. The previous close was ₹131.43, with the day’s low recorded at ₹130.51. The market capitalization of IRFC stands at ₹1.73 lakh crore, with a P/E ratio of 26.54 and a dividend yield of 1.47%. Over the past year, IRFC's stock has experienced a 52-week high of ₹229.00 and a low of ₹108.04.

The uptick in IRFC stock is attributed to a general upswing in PSU stocks, driven by a government infrastructure push, alongside a growing retail interest in railway-themed counters. Market analysts highlight IRFC’s strong financial structure and consistent returns as key factors contributing to its robust position. The firm’s reliable performance is also supported by the government’s commitment to railway infrastructure financing.

On April 22, shares of IRFC rose nearly 2% in early deals, gaining 1.63% to reach ₹133.50. This surge coincided with the announcement that the PSU had rescheduled its board meeting to declare Q4 and fiscal earnings. The stock saw a turnover of ₹7.05 crore with 5.34 lakh shares changing hands on the Bombay Stock Exchange (BSE).

IRFC’s stock performance has been impressive, with a remarkable 373.08% increase over the past two years and a staggering 492.41% rally over three years. However, it also faced volatility, as indicated by its one-year beta of 1.4.

On the technical front, IRFC stock is neither overbought nor oversold, with a relative strength index (RSI) of 59.5. It is currently trading higher than the 5-day, 10-day, 20-day, and 50-day moving averages, but lower than the 100-day, 150-day, and 200-day moving averages.

The board meeting, originally scheduled for April 29, 2025, has been rescheduled to April 28, 2025. This meeting will consider and approve the audited financial results for the quarter and fiscal year ending March 31, 2025, as well as the market borrowing program for the financial year 2025-26. The company stated, "The meeting of the Board of Directors of the Company, which was originally scheduled to be held on Tuesday, 29th April, 2025 stands rescheduled to Monday, 28th April, 2025 inter alia, to consider and approve: i. The Audited Financial Results for the quarter and financial year ended 31st March, 2025 and other financial statements namely Cash Flow Statement and Statement of Assets and Liabilities for the year ended 31st March, 2025. ii. Approval of Market Borrowing programme of the company for the Financial Year 2025-26."

IRFC, a Navratna public sector undertaking, plays a crucial role in financing the acquisition and creation of assets leased out to the Indian Railways or any entity under the Ministry of Railways. The company has also been expanding into sectors linked to railways, including power generation, mining, and telecom.

In the third quarter of FY25, IRFC reported a net profit of ₹1,630 crore, marking a growth of 2% from ₹1,599 crore in the previous year. Revenue from operations in Q3FY25 increased marginally by 0.4% to ₹6,763 crore from ₹6,737 crore year-on-year.

As IRFC continues to attract long-term investors due to its strong fundamentals and high dividend payout ratio, short-term traders are keeping a close eye on the resistance level at ₹134. Institutional buying and retail interest remain pivotal for IRFC’s buoyant performance, with expectations of testing higher resistance levels in the coming sessions.

The overall market sentiment for PSU stocks remains positive, with similar momentum observed in shares of Canara Bank, Coal India, and LIC. As IRFC gears up for its upcoming board meeting and financial announcements, investors are keenly awaiting the details that could shape the future trajectory of this multibagger stock.

In summary, the recent performance of Indian Railway Finance Corporation’s shares underscores the ongoing appeal of PSU financial firms. With a solid foundation and government backing, IRFC is well-positioned to capitalize on the growing infrastructure push in India.

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