2, March, 2024
HomeBusinessIRFC Shares Witness an 11% Decline Today

IRFC Shares Witness an 11% Decline Today

Published on

Indian Railway Finance Corporation Ltd (IRFC) is facing a challenging market scenario as its shares extend a downward trend, plummeting by 11.26% to touch a day low of Rs 136.40. Despite this recent setback, the multibagger script has shown resilience with an impressive rally of over 360% in the past year.

Read Also | Indian Railways Unveils Ambitious Plan: 60 New Vande Bharat Express Trains Set to Transform Rail Travel in 2024

In the Q3 FY24 report, IRFC revealed a net profit of Rs 1,604 crore, experiencing a 1.78% decline from the year-ago period. However, there was a contrasting 8.43% increase in revenue from operations, reaching Rs 6,742 crore compared to Rs 6,218 crore in the corresponding period of the previous fiscal.

Analysts express caution regarding IRFC’s stock valuation, even after the correction. AK Prabhakar, Head of Capital at IDBI Capital, highlighted that the stock still appears “expensive” and cautioned potential investors, emphasizing the need for careful consideration before entering the market.

From a technical perspective, support is anticipated around the Rs 130 zone, while resistance levels may be encountered at Rs 153.7, followed by Rs 162. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, pointed out that the stock, after a significant surge, faced resistance near the Rs 192 zone. To improve the bias, a decisive breach beyond Rs 162 is crucial.

AR Ramachandran from Tips2trades noted a bearish outlook for IRFC’s stock on daily charts, identifying strong resistance at Rs 153.7. A daily close below the support of Rs 133 could potentially lead to a further decline to Rs 117 in the near term, according to Ramachandran.

Read Also | Amazon Sale 2023: Grab Unbelievable Discounts on Smartwatches – Up to 91% Off!

IRFC’s core business involves borrowing funds from financial markets to finance asset acquisition or creation, which are then leased out to the Indian Railways or entities under the Ministry of Railways. As of December 2023, promoters held an 86.36% stake in this ‘Navratna’ PSU. Investors and market watchers will closely monitor the developments to gauge the trajectory of IRFC’s performance in the coming sessions.

Latest articles

WhatsApp Unveils Handy Pop-Out Chat Feature for Windows Beta

WhatsApp is set to revolutionize user experience with the introduction of a new pop-out...

Not-So-Neighborly Hollywood Stars: Tales of Trespassing and Turmoil

Living next to a Hollywood celebrity might sound like a dream, but for some...

Global Recognition: ‘Drishyam’ Franchise Set for Hollywood Remake After Korean Success

The Drishyam franchise, celebrated for its triumph in India and China, is poised for...

More like this

Bumble Initiates Restructuring, Announces Workforce Reduction

Bumble, the popular dating app, has disclosed plans to terminate approximately 30% of its...

Dailyhunt Nearing Acquisition of Indian Social Network Koo

Dailyhunt is reportedly in the final stages of discussions to acquire Koo, a Bengaluru-based...

Expedia Announces 1,500 Jobs Layout Amid Shifting Travel Landscape

Expedia Group is set to trim its global workforce by 9%, amounting to approximately...
Enable Notifications OK