IRFC share price: Is this a stock to buy and hold for the long term?

IRFC share price: Shares of Indian Railway Finance Corporation (IRFC) have remained in base-building mode after climbing to a lifetime high of ₹229 apiece on the NSE in June 2024. In the last ten months, IRFC share price has crashed from ₹229 to ₹124 per share, recording a nearly 46% dip. However, railway PSU stocks witnessed some value buying last week after the Union Cabinet approved four railway infrastructure projects worth ₹18,658 crore. They said that IRFC shares look very attractive and may give whopping returns in the long term. They noted that IRFC is in the finance business to railway infra companies. So, the benefit of GoI’s focus on rail infrastructure is expected to trickle down to most of the railway infra companies, who would come to IRFC to garner finance for their projects. So, IRFC is the most suitable bet at current market valuations.

Why should you buy IRFC shares?

Batting in favour of IRFC shares, Gaurav Goel, Founder & Director at Fynocrat Technologies, said, “Last Year, we saw a mad rush buying in all the PSU sectors, including the railway or railway-related financing stocks. Many stocks started trading at hefty valuations that did not justify the growth at which these companies were growing. All such stocks saw a hefty correction, with some declining around 40% to 50% from their 52-week highs. IRFC shares are one of them. An intelligent investor generally smells such opportunities and tries to invest in fundamentally sound stocks available at reasonable valuations.”

Advising long-term investors to look at IRFC shares, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “IRFC is in the business of railway infra lending. So, railway infra companies look at IRFC to provide credit for their projects. After approving four railway infra projects worth ₹18,658 crore, IRFC is expected to reap maximum benefits as all beneficiary railway companies would come to IRFC for the credit lines to their respective projects. So, investing in IRFC shares at current valuations looks attractive. For a long-term investor, IRFC shares may become the wealth-creating stock in their portfolio.”

“For conservative investors, IRFC stands best regarding its business model, which is a dedicated financing arm of Indian Railways. We believe strong government backing and a low-risk business model with healthy dividend yields in the long term give IRFC a better long-term pick,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

IRFC share price target 2025

Speaking on the technical outlook of IRFC share price, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Railway PSU stocks are showing signs of revival after deep corrections. Among them, IRFC share price appears to be the strongest candidate. IRFC share price has corrected 46% over 33 weeks but is now forming a higher low on the weekly chart, backed by a bullish Marubozu candle — a sign of strong buying interest. With visible relative strength, a bounce toward ₹140 looks likely.”

“On breaking above ₹140 on a closing basis, IRFC share price may touch ₹160 to ₹165 apiece in nine to twelve months,” said Anshul Jain of Lakshmishree Investment and Securities.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.