IRFC shares climbed 6% today; what's next for this rail PSU?

Shares of Indian Railway Finance Corporation (IRFC) Ltd picked up a strong pace in Monday's trade, in line with the sharp run-up in domestic benchmarks. The stock surged 6.18 per cent to hit a day high of Rs 123.70, pausing its two-session downward trend. It was last seen trading 5.58 per cent up at Rs 123. At this price, it has slipped 18.16 per cent year-to-date (YTD).

The rail PSU's net profit slipped 2.1 per cent to Rs 1,682 crore in the March 2025 quarter (Q4 FY25) as against Rs 1,717.3 crore in the corresponding quarter of the previous fiscal. Revenue climbed 3.8 per cent to Rs 6,722 crore in Q4 FY25 against Rs 6,474.6 crore in the year-ago period. In addition, the company's Board approved the raising of resources of up to Rs 60,000 crore for the financial year 2025-26 (FY26).

Market experts largely suggested a likely further upmove for IRFC's stock in the short term.

Ravi Singh, SVP - Retail Research at Religare Broking, said, "The stock has potential to hit an upside target of Rs 135 in the near term. Keep stop loss placed at Rs 110."

Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "As long as IRFC maintains levels above Rs 109, the stock is well-positioned to move towards Rs 134 in the near term, followed by a potential rally towards Rs 157."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 118 and resistance at Rs 126. A decisive move above Rs 126 level may trigger a further upside towards Rs 130. The expected trading range will be between Rs 115 and Rs 130 for the short term."

Technically, IRFC's scrip traded higher than the 5-day (SMA) but lower than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 46.63. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 23.29 against a price-to-book (P/B) value of 2.96. Earnings per share (EPS) stood at 5 with a return on equity (RoE) of 12.70. According to Trendlyne data, IRFC has a one-year beta of 1.4, indicating high volatility.

IRFC borrows funds from the financial markets to finance the acquisition or creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. As of March 2025, the government held an 86.36 per cent stake in the 'Navratna' PSU.

Meanwhile, Indian equity benchmarks zoomed over 3 per cent today as investors cheered the ceasefire announcement between India and Pakistan.