The Indian Railway Finance Corporation (IRFC) shares were launched in January 2021 at an initial launch price of 25 rupees. The stock did not receive much traction and remained trading sideways until early 2023. However, things changed dramatically as IRFC picked up steam, and the prices went 10x between 2023 and 2024. It touched a new all-time high of 229 in July, displaying extremely bullish sentiments.
Also Read: De-Dollarization: JP Morgan Explains The Major Threat To the US Dollar
It has spiked nearly 540% in three and a half years, and investors who held on to the share enjoyed massive profits. Nonetheless, after hitting its ATH, IRFC shares are now declining, allowing buying opportunities for those who missed taking an entry position.
IRFC shares have dipped nearly 12% in a month and ended Wednesday’s trade at 158.99. The stock is now experiencing a downturn due to profit booking and sell-offs from large investors.
Also Read: BRICS Makes Major Announcement On New Payment System
‘Exit IRFC’, Buy The Shares At a Lower Price For Profits: Analyst
Anshul Jain, the Head of Research at Lakshmishree advised investors to exit from IRFC and book profits. He predicted that IRFC shares could dip below the 125 range and have a probability of falling to 115. Jain explained that taking an entry position at its lowest level is the best way to ensure traders get the maximum returns when it kick-starts a bull run.
Also Read: De-Dollarization: How the US Is Helping Chinese Yuan To Succeed
“IRFC, which surged following the budget, is now facing a significant correction. Analysts predict a sharp pullback of nearly 50% from its recent highs, with the price likely to drop to the ₹115-₹125 range. Such corrections are common after strong rallies, and this may be an opportune time for short-term investors to consider exiting the stock,” he said.
“While long-term prospects remain solid, the short-term outlook has shifted. Investors could find better re-entry points once the stock stabilizes at lower levels. To protect recent gains, it’s advisable to step back now and wait for a more favorable buying opportunity in the future.” Jain added.