Stock market today: Indian Railway Finance Corporation or IRFC share price has been in uptrend for more than one year. In fact, this Indian Railways‘ PSU stock is one of the multibagger stocks that Dalal Street has produced in recent years. In last one year, IRFC share price has delivered more than 130 per cent return to its positional shareholders. The ascended to its new life-time high last week after announcement of Q1 results 2023. However, the railway PSU stock is under pressure since early morning deals. IRFC share price today opened lower and went on to hit intraday low of ₹48.25 per share, retracing near 9 per cent from its life-time peak of ₹52.70 per share on NSE.
According to stock market experts, IRFC share price was in continuous uptrend on new wagon order by Indian Railways. But, after weak Q1 results 2023 of the railway PSU company, profit booking was widely awaited and this dip should be seen as profit booking trigger in the scrip. They advised IRFC shareholders to hold the stock maintaining stop loss at ₹48 as it may bounce back and go up to ₹52 and ₹55 levels after consolidation. On breaching ₹48 levels, the stock may go down towards ₹45 apiece levels, they said.
IRFC share price outlook
On why IRFC share price is under pressure, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “IRFC share price was in uptrend due to new wagon order by the Indian Railways that is expected to benefit the railway PSU company. But, lower than expected first quarter results of the company for the financial year 2023-24 as well. However, after a long rally, profit booking was widely awaited and in absence of any further trigger, people have started booking profit in the scrip.”
Advising IRFC shareholders to hold the stock, Sumeet Bagadia, Executive Director at Choice Broking said, “IRFC share price has immediate support placed at ₹48 apiece levels. So, those who have this scrip in their stock portfolio, they are advised to hold the scrip with stop loss at ₹48. On breaching this support, IRFC share price may go down towards ₹45 apiece levels. In case of bounce back, IRFC share price may go up to ₹52 and on breaching this resistance on closing basis, it may go up to ₹55 per share levels.”
on Friday last week, IRFC reported 6.3 per cent year-on-year fall in its net profit for the fiscal’s first quarter ended June (Q1FY24) to ₹1,556.6 crore. The company had reported a profit of ₹1,661.6 crore in the year-ago period. Sequentially, net profit was up 17.2 per cent from ₹1,327.7 crore in Q4FY23.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 17 Aug 2023, 11:17 AM IST