IRFC share price: Will bull trend continue in multibagger stock after Q3 results 2024?

Multibagger stock: Shares of Indian Railway Finance Corporation Limited are one of the multibagger stocks that the Indian stock market has delivered in the last one year. At this time, this railway PSU stock has given over 400 percent return to its shareholders. However, IRFC share price has been under sell-off stress after climbing to its lifetime high of ₹192.80 per share on NSE at the end of January 2024. IRFC shares are expected to remain in focus on Monday as the Indian PSU declared its Q3 results 2024 on Saturday.

According to stock market experts, IRFC has demonstrated a stable revenue base with a slight increase in Revenue from Operations on a QoQ basis. They said that in the October to December 2023 quarter, the Indian Railways PSU has managed to maintain consistent profitability as well. They said that the stock witnessed profit-booking ahead of the quarterly results but the stock may bounce back and go up to ₹180 and ₹200 levels short term.

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IRFC Q3 results 2024

Speaking on IRFC results for the third quarter of the current financial year, Parth Shah, Research Analyst at StoxBox said, "The revenue for Indian Railway Finance Corporation Ltd saw a higher single-digit growth on a YoY basis but a mild decline sequentially. The net profit for the company saw a single-digit growth on a sequential basis; however, it saw a decrease when compared to an annual basis. Although the company's outstanding debt grew in Q3FY24, its debt-to-equity ratio dropped in Q3FY24. The company's EPS saw quarterly growth but underperformed when compared annually."

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"As the government aims to push growth in the railway sector and the upcoming capex plans introduced by the government, the company is set to grow in line with such improvements in the coming period. However, we will keep a close watch on the macro events happening around the sector and the actions taken by the management to benefit from the opportunities arising from them," the StoxBox expert added.

Expressing satisfaction over the IRFC Q3 results 2024, Anirudh Garg, Partner and Fund Manager at Invasset said, "IRFC Ltd's financial performance for the quarter ending 31st December 2023 demonstrates a stable revenue base with a slight increase in Revenue from Operations compared to the previous quarter, reaching ₹67,418.63 million. The company maintained consistent profitability, with the Net Profit for the period before Tax (after Exceptional items) being ₹16,042.27 million, identical to the Net Profit for the period after Tax. This reflects a strong tax management strategy, as there is no difference due to tax expenses. The Total Comprehensive Income for the period slightly decreased to ₹16,108.57 million from ₹15,649.93 million in the previous quarter."

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Garg went on to add that the company’s debt levels remained well-managed, with a Debt Equity Ratio of 8.54, a slight increase from the previous quarter’s 8.52, but still lower than the 9.13 reported at the end of the previous fiscal year. The Earnings Per Share (EPS) improved to ₹1.23 from ₹1.20 in the previous quarter, indicating increased profitability on a per-share basis.

"The Finance cost has decreased over the years. Total Expenses for the quarter ended December 2023 were ₹51,410.84 million, a marginal increase from the previous quarter. The Profit Before Tax remained consistent with the previous quarter," Anirudh Garg said.

IRFC share price target

Giving a positional view on IRFC share price, Sumeet Bagadia, Executive Director at Choice Broking said, “IRFC share price today has crucial support placed at ₹120 whereas it is facing a minor hurdle at ₹180 apiece level. On breaching this hurdle, IRFC share price may go up to ₹200 per share level. So, IRFC shareholders are advised to hold the stock and add more if the stock falls around ₹135 apiece level. However, they must maintain strict stop loss at ₹120 per share level.”

On the suggestion to the fresh investors, Bagadia said, "Fresh investors can maintain buy-on-dip strategy maintaining stop loss at ₹120 for the short term target of ₹180 and ₹200 per share respectively."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.