IRFC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | IRFC | Market Cap | 1,51,556 Cr. | Current Price | 116 ₹ | High / Low | 149 ₹ |
| Stock P/E | 21.6 | Book Value | 43.3 ₹ | Dividend Yield | 1.38 % | ROCE | 5.83 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 120 ₹ | DMA 200 | 126 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.06 % | PAT Qtr | 1,802 Cr. | PAT Prev Qtr | 1,777 Cr. |
| RSI | 44.7 | MACD | -1.43 | Volume | 1,55,67,891 | Avg Vol 1Wk | 3,05,32,128 |
| Low price | 108 ₹ | High price | 149 ₹ | PEG Ratio | 9.79 | Debt to equity | 2.73 |
| 52w Index | 19.3 % | Qtr Profit Var | 10.5 % | EPS | 5.36 ₹ | Industry PE | 19.7 |
📊 IRFC shows moderate potential for swing trading. The stock is priced at ₹116, below both its 50 DMA (₹120) and 200 DMA (₹126), indicating short-term weakness. Technical indicators (RSI 44.7, MACD negative) suggest bearish momentum. Fundamentals are mixed: steady profits and low volatility, but weak ROCE (5.83%), modest ROE (12.8%), and high debt-to-equity (2.73) limit attractiveness. Valuation is slightly above industry PE, making it moderately expensive.
💡 Optimal Entry Price: Around ₹112–115 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹125–128 resistance levels, or maintain a stop-loss around ₹110.
✅ Positive
- Quarterly PAT improved from ₹1,777 Cr. to ₹1,802 Cr. (+10.5%).
- EPS of ₹5.36 reflects consistent profitability.
- Dividend yield of 1.38% provides modest shareholder returns.
- FII (+0.01%) and DII (+0.06%) holdings increased slightly, showing institutional support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- ROCE (5.83%) and ROE (12.8%) are relatively weak compared to peers.
- Debt-to-equity ratio of 2.73 indicates high leverage risk.
- PEG ratio of 9.79 suggests expensive growth valuation.
📉 Company Negative News
- MACD at -1.43 shows bearish crossover momentum.
- Trading volume (1.55 Cr.) is below weekly average, showing reduced participation.
- Stock trading far below 52-week high (₹149), limiting bullish sentiment.
📈 Company Positive News
- Quarterly profit growth (+10.5%) supports near-term optimism.
- Dividend yield of 1.38% adds to investor appeal.
- Institutional inflows (FII and DII) show marginal confidence.
🏦 Industry
- Industry P/E at 19.7 is slightly lower than IRFC’s 21.6, suggesting mild overvaluation.
- Financial services sector benefits from government-backed infrastructure financing, but faces margin pressures due to high leverage.
🔎 Conclusion
IRFC earns a swing trade rating of 3.5. Entry near ₹112–115 offers a safer risk-reward setup, while profit booking should be considered near ₹125–128. Traders should remain cautious due to weak technicals, high debt, and modest efficiency, but steady profits and dividend yield provide limited upside opportunities.