RFC shares jump over 12%, hit new 52 week-high
Railway theme has been one of the most interesting and rewarding ones in recent times. While stocks like RVNL and RailTel witnessed quick gains recently, IRFC has been a shy one. This is expected to change in a big way." In the calendar year 2023, the stock has rallied 35%.
The Indian Railways stock has turned multibagger, and has moved significantly in one direction from the past year. The counter has zoomed 109% in a year. «IRFC stock has confirmed a breakout from a Cup and Handle pattern on the daily charts, which is a continuation pattern in nature,» he said.
Meanwhile, the IRFC stock has a PE of 8.2, indicating it’s overvalued compared to the sector. «The stock has witnessed strong volumes in the last few days, suggesting strong accumulation might have opened which can pave the way for a robust upside in the coming days,» highlights Bissa. «The stock is also exhibiting a strong Ichimoku setup which can result in a fresh uptrend going forward, thus making IRFC a compelling buy at the current levels for a target of Rs 45 in the next 2 months.
A stop loss can be placed below Rs 34 on a closing basis,» he recommends. At 12.09 pm, the scrip was trading 10.1% higher at Rs 43.8 on BSE. The firm has a market cap of 57,070 crore.
Meanwhile, the stocks also rallied in the last few months as India is working on an ambitious plan to create energy, mineral, and cement transport corridors for the seamless movement of coal, iron ore, bauxite, and cement. The railway's ministry plans to seek Cabinet approval for a Rs 5.25 lakh crore investment program during fiscal years 2024-31 to improve rail connectivity to mining areas, cement plants, and consumption points, based on the PM Gati Shakti National Master Plan. «The enhanced
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