IRFC now commands a market capitalisation of ₹1.43 lakh crore, having corrected sharply from its peak. At one point, the stock was more valuable than at least 21 Nifty 50 constituents.
Despite the correction, IRFC’s market capitalisation is still higher than 13 Nifty 50 companies, including Tata Consumer, Dr. Reddy’s, Eicher Motors, among others.On the charts, IRFC’s Relative Strength Index (RSI) is deeply oversold, at levels of 24. An RSI reading below 30 indicates that the stock is “oversold”. The stock is also trading below all of its key moving averages.
At the current price, IRFC is trading at 2.5 times financial year 2026 price-to-book.IRFC, the railway financier, also falls into the list of those stocks, in which the government could potentially sell stake to comply with the Minimum Public Shareholding (MPS) norms.
At the end of the December quarter, the government had a 86.36% stake in IRFC.
IRFC is also a recent entrant into the Futures & Options Space. It does not have significant analyst coverage, as only one analyst on the street covers the stock.
Investec has a “sell” rating on IRFC with a price target of ₹50, which means that the analyst expects the stock to fall another 50% from current levels.
“IRFC has broken below the long-standing ₹115 support level in the current session, a key threshold for its price stability. If the stock fails to close above ₹115 on a weekly basis, it could signal a bearish range shift. This would establish ₹115 as a new resistance level, with the stock likely trading within a lower range of ₹90-₹115. Such a shift could indicate further weakness, prompting sellers to dominate while buyers may wait for confirmation before stepping in. A sustained move below ₹115 could increase downside pressure, making ₹90 the next crucial support to watch,” Jigar Patel of Anand Rathi said.
Shares of IRFC are trading 2.6% lower on Monday at ₹109.5. The stock is already down 27% so far in the first two months of the year.
First Published: Mar 3, 2025 10:43 am IS
