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Indian Railway Finance Corporation Ltd (IRFC) share price rose 3.5% in morning trades on Tuesday, March 21, 2024, following the announcement of its Q4 results and dividend payout.
The company reported a 33.6% year-over-year (YoY) increase in net profit to ₹1,717 crore for the quarter ended March 31, 2024, compared to ₹1,285 crore during the same period last year. Overall revenue from operations increased by 4.5% to ₹6,473 crore from ₹6,193 crore in the previous year's corresponding quarter.
For the full financial year FY24, IRFC reported a net profit of ₹6,412 crore, up from ₹6,167 crore in FY23. The company also declared a final dividend of ₹0.70 per equity share of ₹10 for the fiscal year 2023-2024, in addition to an interim dividend of ₹0.80 per share declared earlier, bringing the total dividend for the year to ₹1.50 per share.
Analysts remain bullish on IRFC's prospects, with Chandan Taparia of Motilal Oswal Financial Services giving a 'buy' call with a target price of ₹190, indicating an upside potential of around 10% from the current market price. Taparia noted the company's strong performance and positive technical indicators, suggesting further upside potential.
However, Hormuz Maloo of AFco Investment cautioned that the stock's movement going forward will largely depend on the outcome of the upcoming elections and that technically, no major sell signals are visible yet, despite the stock appearing somewhat overvalued fundamentally.
Source: IRFC share price rises 3.5% post Q4 results, dividend announcement