IRFC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

🚄 IRFC shows stable earnings and weak technical momentum. Entry near ₹118–₹120 is optimal. If already held, consider exiting near ₹130–₹135.

📈 Positive

• EPS ₹5.23 and P/E 23.4 — fairly valued compared to industry
• Quarterly PAT growth: ₹1,777 Cr. vs ₹1,746 Cr. — up 10.2%
• Dividend yield 1.31% — modest income potential
• Debt-to-equity 7.25 — typical for financial leasing firms
• FII and DII holdings increased — mild institutional interest

⚠️ Limitation

• MACD -0.67 and RSI 41.2 — weak technical momentum
• Trading below DMA 50 (₹126) and DMA 200 (₹132) — bearish bias
• ROCE 5.83% and ROE 12.8% — moderate capital efficiency
• PEG ratio 10.6 — valuation not justified by growth
• Volume below weekly average — cooling short-term interest

🚫 Company Negative News

• Stock down ~27% from 52-week high of ₹167
• MACD and RSI suggest lack of momentum for immediate breakout

✅ Company Positive News

• Consistent profitability and stable earnings growth
• Positive outlook on railway infrastructure financing and government capex
• Analysts expect medium-term recovery toward ₹140+ levels

🏭 Industry

• Railway finance sector benefits from infrastructure expansion, public investment, and long-term leasing demand
• IRFC trades in line with industry PE (23.4) — fairly valued

🧾 Conclusion

• IRFC is a fundamentally stable but technically weak swing candidate
• Best entry: ₹118–₹120 near support and RSI base
• If already held, exit near ₹130–₹135 — resistance zone below DMA 200
• Watch for MACD crossover and RSI >50 for confirmation

I can also compare IRFC with other railway-linked financial stocks to help you spot stronger swing setups.