IRFC Share Price Rised Over 9%: Stock Continues to Gain For Third Consecutive Session

The Share Price of Indian Railway Finance Corporation (IRFC)  has risen by 9.2% over the last three sessions. This surge follows the company's receipt of the prestigious Navratna status from the Government of India, which highlights its role in supporting the nation's railway infrastructure.

Main News

IRFC, an important entity in financing Indian Railways, was recently conferred with the Navratna status, a significant achievement for the company. This recognition underscores IRFC's financial stability and its critical contribution to the development of India's railway sector. The company achieved Mini-Ratna Category-I status in March 2018 and went public in January 2021 with an initial public offering (IPO) price of ₹26. The stock has since risen to approximately ₹140.

Manoj Kumar Dubey, the CMD and CEO of IRFC, expressed that the Navratna status reflects the company's financial strength and commitment to furthering India's railway infrastructure. This recognition motivates the company to continue expanding its capabilities.

Company Details

IRFC is a prominent financial entity that supports Indian Railways by providing financing for rolling stock, such as locomotives and coaches. The company is India's third-largest government non-banking financial company (NBFC). IRFC has played a crucial role in funding nearly 80% of the rolling stock for Indian Railways and made history as the first CPSE to issue a 30 year bond in global markets.

Financial Overview

• Revenue: IRFC reported revenue exceeding ₹26,600 crore for the fiscal year ending March 31, 2024.
• Net Profit: The company posted a profit after tax of over ₹6,400 crore for the same period.
• Market Capitalisation: As of December 31, 2024, IRFC's market capitalisation stood at over ₹2,00,000 crore.
• Assets Under Management (AUM): The company's assets under management were ₹4.61 lakh crore.
• Net Worth: IRFC's net worth is estimated at approximately ₹52,000 crore.
• Total Balance Sheet: The total balance sheet of IRFC exceeds ₹4.81 lakh crore.

Summary

IRFC's recent rally is attributed to the achievement of the Navratna status, which reinforces the company's financial strength and its pivotal role in supporting India's railway infrastructure. With impressive financial figures, such as over ₹26,600 crore in revenue and a market capitalisation surpassing ₹2,00,000 crore, IRFC continues strengthening its position. However, technical analysts caution that while a short-term rebound is likely, the broader outlook remains negative, suggesting potential further declines in the IRFC Share Price.