IRFC Shares Downgraded to Sell: Price to Dip Below 120

Sahana Kiran
IRFC
Source – CNBC

The Indian Railway Finance Corporation (IRFC) has been making headlines for its bearish nature. Over the past five days, IRFC shares have dropped by 2.10%. Currently, this stock’s price is in the 150 INR range after rising to a daily high of 152.15 INR.

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IRFC Market Performance And Future Outlook

Source

More recently, the Nifty 50 index went beyond the 26,200 level, further suggesting that the market was generally positive. As traders searched for possible entry and exit positions using price action analysis, this aided in the IRFC’s performance. Sadly, the market wasn’t too sure about IRFC’s potential rise.

The Indian Railway Finance Corporation stock was recently pushed towards “Sell.” MarketsMOJO revealed that the firm posted flat results in June 2024, which led to the latest downgrading. The sideways technical trend suggests that there is no evident price momentum. This is reportedly one of the primary causes of this decline.

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There Is Hope Left In The IRFC Market

Looking at its long-term growth, IRFC has performed fairly well. The net sales and operating profit grew yearly at 17.03% and 17.04%, respectively. The business is also well-valued, with a price-to-book ratio of 3.9 and a return on equity of 12.7%.

In addition, the downgrading seems relatively insignificant as the IRFC managed to outshine the BSE 500 market with a return of 97.48% over the past year. Its PEG ratio is also high at 9.1, despite the fact that its profits have only climbed by 3.4%.

Factors Affecting IRFC’s Stock Price

It should be noted that the success of individual stocks is significantly influenced by various aspects. This includes the sentiment of the market as a whole. Variables, including governmental regulations, economic data, and worldwide market trends, may impact the price movement of IRFC.

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