IRFC stock surges nearly 500% in 10 months, market cap reaches ₹2 lakh crore; here's why

livemint.com:

Indian Railway Finance Corporation (IRFC) achieved a significant milestone today as its market capitalisation surpassed ₹2 lakh crore for the first time, making it the ninth Indian PSU firm to achieve this feat. The stock in today's trade hit a new all-time high of ₹158.50 apiece. Over the past 10 months (including January), the stock has exhibited a remarkable upward trajectory, witnessing an extraordinary gain of 495%.

Starting from ₹26.60 apiece, it has surged to the current trading price of ₹158 apiece. Also Read: IRFC, Mazagon Dock, Cochin Shipyard, CPCL jump 200-330% in last one year; is the rally in PSU space overdone? Having crossed the ₹one lakh crore market cap milestone in September last year, the company took just four months to achieve the next ₹one lakh crore as its shares continued their winning streak. In the current month alone, the stock has skyrocketed by an impressive 57% so far, marking the biggest monthly gain since its listing in January 2021.

With its issue price at ₹26 apiece, the stock has now appreciated by nearly 500%. IRFC plays a strategic role in supporting the Indian Railways Infrastructure Development Plan. It has emerged as the primary market borrowing arm of Indian Railways to meet their entire extra budgetary resource requirements for capex funding, whether it is rolling stock or railway infrastructure projects.