India’s most valuable railway stock Indian Railway Finance Corporation (IRFC) is now more valuable than 19 Nifty stocks including Bajaj Auto, Mahindra & Mahindra, LTIMindtree and Tata Steel.
On Friday, the market capitalisation of the company touched Rs 2.1 lakh crore mark as the stock jumped 10% to hit its fresh 52-week high of Rs 160.80 on the NSE on Friday. The stock has seen an exponential rise in its price from its 52-week low of Rs 25.40 on March 28, 2023. With today’s fresh high, the gains translate into a staggering 533% in less than a year.
From the lows the market cap of IRFC has increased 6.30 times.
The other Nifty companies trailing IRFC include JSW Steel, SBI Life Insurance Company, Grasim Industries, Tech Mahindra, HDFC Life Insurance Company, Hindalco Industries, Britannia Industries, IndusInd Bank, Tata Consumer, Cipla Bharat Petroleum Corporation, Eicher Motors, Divi’s Laboratories, Dr Reddy’s Laboratories, Hero MotoCorp, Apollo Hospitals and UPL.The stock is currently trading above its 50-day and 200-day simple moving averages (SMAs) and the recent rally has dragged the stock in a strongly overbought zone. The day’s RSI and MFI as reported by Trendlyne stand around 87 and 95, respectively.
Notwithstanding a robust rally, the stock has traded with stability as suggested by its 1-year beta which isless than 1.
The counter’s rally comes ahead of the Union Budget 2024.
“We expect that IRFC will be a major beneficiary of the significant investment in the railways going forward,” Sunny Agrawal, Head – Retail Fundamental Desk at SBI Securities told ETMarkets. In his view, IRFC will also be a top beneficiary of the government’s railway push where an investment of almost Rs 12 lakh crore will be needed by 2030 to cater to growing needs of the sector.IRFC plays a vital role in supporting Indian Railways’ infrastructure development plans and it is expected to invest Rs 1 trillion in acquiring new trains over the next few years, Agrawal said.
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