In a recent development, RITES, a state-owned company, has entered into a memorandum of understanding (MoU) with IRFC (Indian Railway Finance Corporation) to explore various opportunities for collaborative initiatives within the railway ecosystem and the transport infrastructure sector.
On Tuesday, Indian Railway Finance Corporation Ltd (IRFC) experienced a significant surge in its share price, marking the third consecutive session of gains. The stock rose by 9.08% to reach an all-time high of Rs 41.70 compared to the previous close of Rs 38.23. Notably, approximately 2.52 crore shares were traded on BSE, surpassing the two-week average volume of 86.02 lakh shares. The total turnover on the counter amounted to Rs 101.61 crore, with a market capitalization (m-cap) of Rs 53,789.97 crore.
In recent news, the state-owned RITES and IRFC have signed a memorandum of understanding (MoU) to explore collaboration opportunities within the railway ecosystem and transport infrastructure sector. Under this MoU, RITES will offer consultancy and advisory services, aiding in assessing the financial and technical feasibility of projects. On the other hand, IRFC will provide financial services to projects and institutions that are interconnected with the Railways, either backward or forward linkages.
According to Osho Krishan, a Senior Analyst at Angel One specializing in Technical & Derivative Research, IRFC has shown considerable momentum in recent trading sessions, resulting in a significant surge in its value to reach new highs. From a technical standpoint, the stock is expected to maintain its positive momentum in the foreseeable future. Support levels are anticipated around the range of Rs 36-34 to counter any short-term fluctuations, while a crucial support zone exists in the consolidation area of Rs 32-31. As long as the stock remains above these support zones, it is likely to continue trading with a favorable bias and potentially extend its gains into uncharted territory. On the other hand, another analyst suggests that the stock appears “bullish but overbought,” indicating a need for caution while considering its medium to long-term target of Rs 50.
According to Manoj Dalmia, CEO of Proficient Equities, investors can anticipate a medium to long-term target of Rs 50 and may consider accumulating at current levels.
AR Ramachandran from Tips2trades believes that IRFC is exhibiting a bullish trend, but it is also overbought based on the daily charts.
Aditya Gaggar, Director of Progressive Shares, analyzed technical charts and suggested a target price of Rs 49.
The stock’s 14-day relative strength index (RSI) stands at 85.63. Typically, a value above 70 indicates overbought conditions, while a level below 30 is considered oversold. Additionally, the company’s stock has a price-to-earnings (P/E) ratio of 7.88 and a price-to-book (P/B) value of 1.10
IRFC secures funds from the financial markets to support the purchase or development of assets, subsequently leasing them to either the Indian Railways or any entity operating under the Ministry of Railways.