Why is IRFC Share Price Rising?

Indian Railway Finance Corporation (IRFC) shares have been on an upward trend for 4 consecutive sessions. The stock opened at ₹120.99 on the NSE and quickly reached an intraday high of ₹123.75, marking a 2.5% gain. Over the past 4 sessions, IRFC share price has surged by over 11%, rising from ₹111.13 to ₹123.75.

What is Driving the IRFC Share Price Rally?

The primary reason behind the rally is that IRFC received the prestigious Navratna status from the Government of India. This new designation allows IRFC to make independent business decisions without requiring government approval for certain projects. Market analysts believe this move will streamline operations and improve efficiency, increasing investor confidence in the stock.

IRFC’s Expanding Role in Financing

IRFC plays a crucial role in funding Indian Railways, covering nearly 80% of its rolling stock financing needs. As of March 31, 2024, the IRFC reported a revenue of over ₹26,600 crore and a net profit of ₹6,400 crore. With a market capitalisation of ₹2 lakh crore as of December 31, 2024, IRFC has assets under management (AUM) worth ₹4.61 lakh crore, a net worth of ₹52,000 crore, and a balance sheet size exceeding ₹4.81 lakh crore.

Diversification into New Sectors

Beyond railway financing, IRFC is expanding into power generation and transmission, mining, fuel, coal, warehousing, telecom, and hospitality. The company recently secured funding for 20 BOBR rakes for NTPC worth ₹700 crore and won a bid to finance a ₹3,190 crore loan for Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a subsidiary of NTPC. Additionally, IRFC has been selected to provide ₹7,500 crore in funding to NTPC Renewable Energy Ltd for a Rupee Term Loan.

Future Prospects

IRFC is actively exploring financing opportunities in metro rail projects, port rail connectivity, renewable energy for Indian Railways, and public-private partnership (PPP) projects. With its newly acquired Navratna status and aggressive expansion plans, IRFC is well-positioned for long-term growth, making it a stock to watch in the infrastructure and railway sectors.

About Indian Railway Finance Corporation

Indian Railway Finance Corporation is a government-owned public sector enterprise that secures financial resources for railway expansion and operations through capital markets and other borrowings. The company is primarily owned by the Government of India and operates under the administrative control of the Ministry of Railways.

As of March 7, 2025, at 12:16 PM IST, IRFC share price stands at ₹123.00, up by ₹2.41 or 2.00% for the day. The stock opened at ₹120.99, reached an intraday high of ₹124.99, and touched a low of ₹119.90. The company’s market capitalisation is ₹1.61 lakh crore, with a price-to-earnings (P/E) ratio of 24.61 and a dividend yield of 1.22%. Over the past year, the stock has recorded a 52-week high of ₹229.00 and a 52-week low of ₹108.04.

Conclusion

IRFC’s new Navratna status enhances its operational flexibility, boosting investor confidence. With diversification into new sectors, the company is well-positioned for future growth.

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