Momentum Pick: Up 261% in 1 year! Multibagger IRFC can rally another 57%. Here’s why!
IRFC) stock price has run at the speed of bullet train since exactly a year ago when it hit its 52-week low of Rs 21.15 on the NSE. Currently, in a consolidation phase, this multibagger stock has returned a whopping 261% over the last one year.
The stock may have lost some momentum off late but is not without steam, experts opine, as they see a 25-57% upside over the next 4-5 months.
IRFC has outperformed not just Nifty50 which has given 13% returns, but has also left behind many of its peers by a huge margin, namely Ircon International (259%), RITES (42%), RailTel (106%), Texmaco (11%) and Titagarh Rail (65%). It is trailing Rail Vikas Nigam (RVNL) which has yielded 379% returns during this period.
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The stock is currently trading at a discount of 17% to its 52-week high of Rs 92.35 and has been moving sideways since then.
A look at the technical charts shows that the PSU railway stock is moving above all its 8 simple moving averages (SMAs), including 50-day and 200-day SMAs while four oscillators are in the bullish zone.
IRFC shares have also emerged from overbought zones as suggested by Trendlyne. The day's RSI and MFI on Tuesday stood at 64.2 and 50.6, respectively which indicates that the upside remains intact.
Jatin Gedia, Technical Research Analyst, Sharekhan, said that investors willing to take a long position in the stock can wait for dips and look to accumulate between Rs 65 and Rs 67.
