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IRFC, the first IPO of 2021, has been on a rollercoaster ride since its listing. After underperforming for the initial three years, the stock experienced a remarkable surge in 2023, nearly tripling in value. This momentum continued into January 2024, with the stock soaring by 75%. Even at its current price, IRFC shares are trading at 7 times their IPO price of ₹26.
However, the stock has recently cooled off, dipping 12% from its recent high of ₹200 reached on June 3, the day of the exit polls. Following a drop on June 4 to ₹164, the stock is now on its way to recovery. Nevertheless, it has yet to reclaim the ₹188 level at which it closed on June 3.
Technical Analyst Manas Jaiswal advises investors holding IRFC shares to maintain their positions, suggesting a stop loss of ₹159. Jaiswal believes that the first target for IRFC is ₹200, the recent record high achieved by the stock. Once this level is surpassed, he anticipates the stock to enter uncharted territory and potentially reach ₹235.
This target of ₹235 represents a potential upside of 33% from Monday's closing price. Notably, IRFC's current market capitalization of ₹2.31 lakh crore surpasses the value of many Nifty 50 companies and is higher than most railway-linked companies. The stock ended Monday's trading session 0.3% higher at ₹176.9, marking a 76% increase year-to-date in 2024.
After the substantial gains in January, IRFC shares have largely been in consolidation mode. The recent pullback and the analyst's prediction of a potential 33% upside highlight the volatility and potential of the stock. Investors are keenly observing whether IRFC can break through the ₹200 resistance level, which could signal further significant gains in the near future.
Source: IRFC shares may see 33% upside, but a chartist wants it to cross these levels first