Small Railway Stake; 20% rise in 5 days | Demand ahead of budget! The company’s share price rose more than 5 percent on Tuesday. The company rose as much as 7 percent to Rs 36.30 in early trade. Indian Railway Finance Corporation closed at Rs 35.55 on the National Stock Exchange on Tuesday.
The stock is said to have gained more than 20 percent in the last five days alone. The company, which traded at Rs 29 last week, is slowly climbing into the new week. IRFC shares have seen growth of over 55 percent in one month and over 66 percent in six months. The share price of the company was Rs.21 in the month of May.
The stock experts conclude that the ‘fire is not over’ in the stock. Any announcement of tax cuts or infrastructure development in the Union Budget will change the headlines of IRFC shares.
Various economists are suggesting a target price of Rs 40 to Rs 45 on the stock. Investors can also think about stockpiling stocks after every dip in the market.
High dividend yield is another attractive factor for IRFC. A ‘bulk deal’ of 14.3 lakh shares was seen in the stock in the pre-open session before the market opened on Tuesday.
Indian Rail Finance Corporation is a company that is not stingy when it comes to paying dividends to its shareholders. Since its listing in January 2021, the company has paid dividends to investors four times so far. IRFC’s dividend yield is 4.16 percent.
The company had paid an interim dividend of Rs 1.05 per share in February 2021. In November of the same year, IRFC again distributed a dividend of Rs 0.77 each. This year, the company declared dividends of Rs 0.63 in September and Rs 0.77 in November.
This is the first time IRFC shares have risen above the IPO price since listing in January 2021. The stock currently commands a 40 percent premium over the IPO price. IRFC’s resurgence, which fell into a deep slump since its debut, is a big relief for investors. The company has seen a high of Rs.36.30 and a low of Rs.19.30 in the past 52 weeks.
Indian Rail Finance Corporation works under the Union Ministry of Railways. In fact, other railway stocks in the market are also making similar moves. Rail Vikas Nigam is another railway stock that has delivered a bang for investors over the past month; 96 percent gain. Ircon International also saw a 30 percent rise in shares.
Ravi Singh, head of research at Share India, believes that the direction of railway stocks will be up till the Budget. IRFC will touch Rs 42 and RVNL will touch Rs 90 level. In the last three months, shares of IRFC, RVNL, Titagar Wagons, Texmaco Rail and Railtel Corporation have presented gains ranging from 18 to 147 percent to investors.
The above article is for study purpose. Before taking investment decisions in this regard, the advice of a financial expert can be sought.
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