IRFC share price closes at life high level, above IPO issue price: Check fundamentals, technical charts, dividend info and more

IRFC share price: Shares of Indian Railway Finance Corporation (IRFC) touched a lifetime-high level of Rs 28 a share on closing basis after gaining over 6.5 per cent on the exchanges on Thursday. The stock breached its IPO (initial public offer) issue price of Rs 26 apiece at the upper end for the first time. 

IRFC IPO was launched between January 18-20, 2021, with a price band of Rs 25- 26 per share. The company’s shares made a tepid debut on January 29, 2022, below the issue price, and had been trading between in the range of Rs 19-24 apiece.  

On an intraday basis, the stock has reported the biggest gains today after surging around 10 per cent to touch a life-high level of Rs 28.7 apiece on the NSE and BSE. In 2022 so far, the counter has reported over 21 per cent growth, while it soared nearly 30 per cent in the last six months on the NSE. 

IRFC Stock Traded Ex-Dividend 

The massive surge in the stock could be attributed to the interim Dividend. The stock on Thursday was trading ex-dividend as the company has set November 18, 2022, as the Record Date for Interim Dividend announced along with second quarter results for the financial year 2022-23 on November 10, 2022. 

“The Board of Directors has declared an Interim Dividend of Rs 0.8 per equity share of Rs 10 each. While the ‘Record date’ for determining the eligibility of shareholders for payment of the said interim Dividend, as declared by the Board is Friday, 18th November 2022,” IRFC said in its exchange filing. 

IRFC Strong Fundamentals 

The state-owned IRFC, which funds around 50 per cent of rail infra projects, has zero NPAs (non-performing assets). The company doesn’t pay tax as it is being exempted by the government. It has merely 37 employees in the company, which operates from a small setup in Hotel Ashok, Delhi. 

The company has a net worth of FY24E Rs 55,000 crores and the current market capitalization as per BSE is around Rs 36,500 crore. It has a PE multiple of 5.5, price to book of 0.8, and a return on equity (RoE) of around 15 per cent, as per the BSE. 

IRFC Technically Strong 

IRFC share price is seen resuming up move above the last 10 months range breakout area Rs 24.50-19.50 per share, signalling continuation of the up move, ICICI Securities said, adding that the breakout is supported by highest volume in just 18 months, thus offers fresh entry opportunity. 

The brokerage had expected the stock to head towards Rs 28.50 levels in the coming sessions - measuring the implication of the last 10 months range of the stock mentioned above and suggested to Buy. 

Among oscillators, MACD (Moving Average Convergence/Divergence) is in a strong up trend diverging from its nine periods average, it added. 

IRFC Q2 Performance 

IRFC, which is under the Ministry of Railways, reported a 14 per cent year-on-year growth in its net profit at Rs 1,714 crore in the July-September quarter of the financial year 2022-23 (Q2FY23) as compared to Rs 1,501 crore in the same quarter of the previous fiscal. 

The company’s revenue from operations grew around 24 per cent to Rs 5,810 crore in Q2FY23 as against Rs 4,690 crore in the same period a year ago. While its net worth stood at Rs 43,549 crore and Assets Under Management (AUM) at Rs 4,39,070 crore in Q2, IRFC said in its results filing.