Do You Own This Railway PSU Stock That Rallies 17% Today and Returns 310% in Six Months?

On January 15, shares of Indian Railways Finance Corporation (IRFC) jumped by about 18% to reach a new high. Since the IPO, the stock has increased by around 400% from its Rs 26 price. Starting with the IPO price in 2021, the multibagger stock fluctuated between Rs 26 and Rs 30 till April 2023. But in the intervening year, the stock has more than quadrupled and is still reaching new highs.

Analysts cited the government’s emphasis on the industry, new funding, and the company’s anticipated successful December quarter as some of the factors driving the IRFC stock increase.

The stock, which went public in 2021, has gained around 400% since its issue price of Rs 26. The majority of the gains have occurred in the past year.

The pricing range for the IRFC IPO was Rs 25 to Rs 26 per share. Shares of IRFC have returned more than 33.63 percent over the last month, 289.38 percent over the past six months, and 281.75 percent over the past year.

Indian Railway Finance Corporation (IRFC) is the dedicated financial arm of Indian Railways.

The firm was founded in December 1986 with the goal of raising money from both local and international markets to satisfy the majority of Indian Railways’ need for extra budgetary resources. But a number of publications state that the corporation has no non-performing assets. IRFC funds rail infrastructure projects to a 45–55% extent. The organization offers very cheap interest loans. It makes loans to the Railways against the government guarantee.

The IRFC has not yet released its Q3 FY24 figures. IRFC recorded a 9.6% decrease in earnings in its Q2 FY24, coming in at Rs 1,550 crore as opposed to Rs 1,714.3 crore in the same time the previous year. The amount received from operations in the second quarter increased by 16% to Rs 6,766.3 crore from Rs 5,809.8 crore in the same period last year.

The Railway PSU declared a Re 0.80 interim dividend. The business had said in an exchange filing, “Pursuant to Regulations 30 and 43 of SEBI (LODR) Regulations, 2015, as amended from time to time this is to inform that the Board of Directors has declared an Interim Dividend of Rs 0.80 /- per equity share of Rs 10 /- each.” IRFC has previously paid a dividend of Rs 0.63 per share in September 2022. IRFC paid dividends to its stockholders twice in 2021: once in November for Rs. 0.77 and once in February for Rs. 1.05.