IRFC share price: Stock cracks 4% - Buy, Sell or Hold? Check targets

IRFC Share Price NSE: Shares of Indian Railway Finance Corporation (IRFC), the funding arm of the Indian Railways, cracked more than 4 per cent on Tuesday, December 6, amid a bearish note in the domestic equity markets. The stock opened at Rs 33.25 apiece on NSE, down by more than 2 per cent from the previous close of Rs 33.65. The selling pressure dragged the counter to hit the day's low of Rs 32.05, falling almost 4.50 per cent.

IRFC is in the focus for the past one month as it crossed the IPO issue price of Rs 26 for the first time since listing in January 2021. The stock rallied almost 50 per cent to hit a 52-week high of Rs 37.10 on November 30. It has cooled off 20 per cent since then.

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Analysts are bullish on the counter as they see a big move ahead of the budget. They anticipate that IRFC could gain on account of some big announcements related to Indian Railways' infrastructure in the upcoming budget.

Ravi Singh, Vice President and Head of Research, Share India, said that IRFC shares are showing strong momentum in anticipation of some announcement from the government in the budget. The oscillators and momentum indicators suggest another leg of move in the coming days.

IRFC Share Price Target 2023

Kunal Shah, senior technical and derivative analyst at LKP Securities, said that IRFC has already witnessed a parabolic move in the past couple of weeks. He said that the risk to reward at the current level is not very attractive and "is be a buy-on-dip candidate around the level of Rs 27-26".

"The upside levels of Rs 35-40 can be witnessed once the mean reversion is over,” he said.

Manoj Dalmia, founder and director of Proficient Equities, said that IRFC stock is under profit booking and Rs 30 can be a good level to accumulate. "Currently buying is not recommended," he said.

IRFC has delivered a stellar return of more than 50 per cent in the last 6 months, resulting in wealth gain for investors. The marathon rally in the stock in November brought much-needed relief to its investors who were waiting for a trend reversal since listing.

IRFC is a wholly owned subsidiary under the Ministry of Railways.

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