IRFC Share Price on Spotlight After Q4 Results and Dividend News

Indian Railway Finance Corporation Ltd (IRFC) shares, which had been under scrutiny after their Q4 results, surged 3.5% during Tuesday's morning trading session. The company released its financial performance for the fiscal year 2024 and Q4 2024 on Monday, March 20, 2024.

Driven by the increasing capital expenditure of Indian Railways, IRFC's share price has surged by approximately 419% over the past year, providing substantial multi-bagger returns for investors.

IRFC's net profit experienced a significant 33.6% YoY surge, rising from ₹1,285 crore last year to ₹1,717 crore during the same period this year. For the March quarter, the company's overall revenue from operations witnessed a moderate 4.5% increase, rising from ₹6,193 crore in the previous year to ₹6,473 crore.

The Miniratna PSU's net profit for the year ending FY24 amounted to ₹6,412 crore, showing an increase from ₹6,167 crore in FY23. IRFC's share price continues to draw attention following the announcement of a dividend. IRFC has declared a final dividend of ₹0.70 per equity share of ₹10 for the fiscal year 2023-2024. This final dividend is in addition to the Interim Dividend of ₹0.80 per equity share announced by IRFC on November 2, 2023, resulting in a total dividend of ₹1.50 per share for the Financial Year 2023-24, based on a face value of ₹10 each.

Chandan Taparia, Head of Equity Derivatives and Technical Analysis at Motilal Oswal Financial Services, maintains his bullish stance on IRFC shares. Taparia has issued a Buy recommendation for IRFC with a target price of ₹190, representing a potential upside of approximately 10% from its current trading level of around ₹173. Taparia has set a stop-loss level of ₹165 for IRFC shares.

IRFC shares have broken out of a trading range on the daily chart, as observed by Taparia, and have closed above the breakout level. Buying activity is evident across Rail PSU stocks, which could provide support for the ongoing upward trend in IRFC. IRFC has formed a bullish candle on the daily scale, indicating a strengthening uptrend with supports moving higher. The Relative Strength Index (RSI) momentum indicator is positioned favorably, suggesting the potential for further price gains, according to Taparia.

AFco Investment CEO Hormuz Maloo stated that, similar to other stocks, the future trajectory of IRFC stock will be significantly influenced by the outcome of the upcoming elections. While fundamentally the stock may appear overvalued, technical indicators currently do not show any significant sell signals.