IRFC stock surges nearly 538% in last 7 months.

IRFC stock surges nearly 538% in last 7 months, market cap reaches ₹2.3 lakh crore.

The stock in today’s trade hit a new all-time high of ₹176.25 per share. Over the past 7 months, the stock has exhibited a remarkable upward trajectory, witnessing an extraordinary gain of 538%. Starting from ₹32.70 in July 3 2023 to, it has surged to the current trading price of ₹176.25 apiece.

On July 3, 2023, IRFC was priced at ₹32.75. With an investment of ₹10,000, you would have secured approximately 305 shares. Fast forward to today, with the stock price at ₹176.25, those shares would now be valued at approximately ₹53,816.

Indian Railway Finance Corporation (IRFC) achieved a significant milestone today as its market capitalization surpassed ₹2.31 lakh crore for the first time.

IRFC have been gaining momentum along with other railway PSUs such as RVNL, IRCTC and IRCON International. This is because analysts are optimistic about the railway sector ahead of the Interim Budget 2024.

Some key points regarding IRFC.

IRFC was founded by  A. Kishore It started borrowing from the market in 1987–88.

The Government of India owns a majority stake in the company, while the Ministry of Railways has the administrative control

Indian Railway Finance has a total shareholder equity of ₹476.8B and total debt of ₹4,079.9B, which brings its debt-to-equity ratio to 855.6%.

However, one needs to keep in mind that there is very little free float of IRFC shares available in the market. The government still owns 86.4% stake in the company, making the free float available in the market to just around in puplic 11.34% in public. The lack of availability of free float means that any movement in the stock price would be extreme on either side.

Financials

Quarterly financials