IRFC share price jumps 4% ahead of Q1 results today. Is this a stock to buy today?

Q1 results today: Shares of Indian Railway Finance Corporation (IRFC) witnessed strong buying during Monday deals. Ahead of the announcement of Q1 results today, the IRFC share price opened with an upside gap at ₹180 apiece on the NSE and touched an intraday high of ₹186.50 per share, logging a 4 percent intraday gain in the stock market today.

According to stock market experts, IRFC may need to report promising quarterly numbers due to policy paralysis during the April to June 2024 quarter of Lok Sabha elections. They said that, like any other PSU, IRFC Q1 results 2024 are also expected to come weak on a QoQ basis. However, they said that the state-owned company is expected to pick up momentum from the second quarter of the current fiscal as the Government of India (GoI) is in full swing after the inception of the Modi 3.0 government in New Delhi. They said any dip in IRFC share price should be seen as a bottom-fishing opportunity for medium- to long-term investors.

IRFC Q1 results 2024 preview

Expecting weak quarterly numbers from IRFC, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said, “IRFC is expected to deliver a weak set of numbers like any other state-owned company. However, this won't be because of the weakness in the fundamentals of the Indian railway PSU. Most PSU companies have delivered weak numbers during the April to June 2024 quarter due to the policy paralysing the Lok Sabha elections. As the Modi 3.0 government has taken charge in New Delhi and is expected to implement their rail infrastructure-oriented projects in full swing, we expect improved quarterly numbers from IRFC in upcoming quarters.”

IRFC share price target

Speaking on the outlook for IRFC share price, Sumeet Bagadia, Executive Director at Choice Broking, said, “IRFC share price today has crucial and strong support placed at ₹170 to ₹175 apiece. So, IRFC shareholders are advised to hold the scrip, maintaining a stop loss at ₹170 for the immediate target of ₹200. On breaching above ₹200, IRFC share price may touch ₹225 soon.”

On the suggestion to the fresh investors regarding IRFC shares, Bagadia said, 'Fresh investors can buy IRFC shares at current market price and maintain buy-on-dips strategy till the stock is above ₹170 mark. Fresh investors are advised to maintain the strict stop loss at ₹170 for the medium-term target of ₹225 apiece."

Disclaimer: 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.