IRFC shares plunge over 10% after Q3 profit declines
Indian Railway Finance Corporation (IRFC) plunged over 10% to Rs 137 in Monday's trade on BSE after the firm reported a 1.7% year-on-year (YoY) decline in its net profit to Rs 1,604 crore in the December quarter of FY24. The company had reported a net profit of Rs 1,633 crore in Q3 FY23.
Its revenue from operations, however, rose 8.43% to Rs 6,742 crore in Q3 FY24 as against Rs 6,218 crore in the corresponding period last fiscal.
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At 10:42 am, the stock was trading 8.3% lower at Rs 140.8 on the BSE. However, the stock has given multibagger returns to its investors as it has gained around 200% in the last six months, while it has surged 370% in the last one year.
The Board of Directors of the company also approved the appointment of Sanjay Jain as Chief Compliance Officer (CCO) for two years.
Sanjay Jain has more than three decades of experience in different areas like compliance, corporate laws, supervisory regulation, treasury management, borrowings, legal matters, internal audit, credit (wholesale and retail), recovery management etc.
As per Trendlyne data, the average target price of the stock is Rs 44, which shows a downside of 69% from the current market prices. The consensus recommendation from two analysts for the stock is a 'Buy'.
The Relative Strength Index (RSI) is at 55.7. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 16.3, which is above its center line, but below the signal
