IRFC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | IRFC | Market Cap | 1,28,385 Cr. | Current Price | 98.2 ₹ | High / Low | 149 ₹ |
| Stock P/E | 18.3 | Book Value | 43.3 ₹ | Dividend Yield | 2.14 % | ROCE | 5.83 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 109 ₹ | DMA 200 | 121 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.06 % | PAT Qtr | 1,802 Cr. | PAT Prev Qtr | 1,777 Cr. |
| RSI | 35.0 | MACD | -4.30 | Volume | 1,17,93,534 | Avg Vol 1Wk | 1,35,33,611 |
| Low price | 94.3 ₹ | High price | 149 ₹ | PEG Ratio | 8.29 | Debt to equity | 2.73 |
| 52w Index | 7.23 % | Qtr Profit Var | 10.5 % | EPS | 5.36 ₹ | Industry PE | 18.0 |
📉 Chart & Trend: IRFC is trading at ₹98.2, below both its 50 DMA (₹109) and 200 DMA (₹121), confirming a bearish bias.
📊 RSI: At 35.0, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -4.30, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce if support holds.
📊 Volume Trends: Current volume (1.17 Cr) is below the 1-week average (1.35 Cr), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹95–₹98 support is crucial; a breakout above ₹105 could trigger recovery.
🎯 Entry Zone: ₹95–₹98 (support zone, cautious entry).
🎯 Exit Zone: ₹110–₹120 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with oversold signals and weak momentum.
Positive
- Quarterly PAT improved to ₹1,802 Cr from ₹1,777 Cr (+10.5%).
- EPS at ₹5.36 supports valuations.
- Dividend yield of 2.14% provides income support.
- Debt-to-equity ratio at 2.73 is manageable for a financing company.
- FII (+0.01%) and DII (+0.06%) holdings increased slightly.
Limitation
- High PEG ratio at 8.29 suggests stretched growth valuation.
- ROE at 12.8% and ROCE at 5.83% are modest.
- Price trading below both DMA 50 and DMA 200.
- Weak technical momentum with bearish MACD.
Company Negative News
- Weak technical momentum with oversold signals.
- High leverage compared to peers.
- Valuations appear stretched relative to growth.
Company Positive News
- Quarterly profit growth (+10.5%).
- Dividend yield of 2.14% adds investor appeal.
- Stable institutional inflows (FII and DII).
Industry
- Industry PE at 18.0 is in line with IRFC’s P/E of 18.3, showing fair valuations.
- Railway financing sector is stable, driven by government infrastructure spending and long-term contracts.
Conclusion
⚠️ IRFC is in a bearish trend with oversold technical indicators. While fundamentals are supported by profit growth, dividend yield, and stable institutional inflows, weak ROE/ROCE and stretched PEG ratio limit attractiveness. Short-term traders may consider entry near ₹95–₹98 with strict stop-loss, targeting ₹110–₹120. Long-term investors can accumulate gradually, given stable sectoral demand and dividend support.
Selva, since you’re benchmarking railway-linked financing plays, I can prepare a peer overlay with RVNL, IRCON, and RITES to compare IRFC’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?