IRFC Shares Reach A New 52-Week High As The Dividend Record Date Approaches

The Indian benchmark indices kicked off the week on an optimistic note, with the belief that achieving new 52-week highs should be well within reach, given the robust uptrend in place. The BSE Sensex surged 0.53% to reach the 66,950 mark, while the Nifty 50 index posted a 0.61% gain, reaching a level of 19,940.

The broader indices outperformed the main indices, with railway stocks emerging as some of the top gainers. Notably, Shares of Indian Railway Finance Corporation Ltd (IRFC) garnered significant investor attention due to its impressive uptrend.

On an intraday basis on Monday, Indian Railway Finance Corporation Ltd witnessed a remarkable surge, allowing its shares to hit the 10% upper circuit. Furthermore, shares of the company reached a 52-week high, trading at Rs 84.76 per share on the BSE.

A significant surge in buying interest was evident, which appears to be influenced by the announcement of September 15, 2023, being set as the record date for identifying eligible shareholders entitled to receive the final dividend for the financial year 2022-23. In a span of only one month, shares have climbed more than 70%, delivering outstanding returns of around 270% in the past year!

Considering the company’s quarterly performance, it reported a notable growth of 18.69% from Rs 5,627.44 crore registered in Q1FY23, recording total revenue of Rs 6,679.17 crore in Q1FY24. It has reported operating profit growth of 18.68%. Compared to the same quarter last year, the net profit for the first quarter of FY24 fell 6.32%, from Rs 1,661.58 crore to Rs 1,556.57 crore.

Indian Railway Finance Corporation (IRFC) serves as the specialized funding arm of Indian Railways, established with the mission of raising capital from both domestic and international markets to fulfill a significant portion of Indian Railways’ extra-budgetary resources needs. The company is a Schedule ‘A’ Miniratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.