IRFC shares open at record high, stock up 100% year-to-date

Shares of the Indian Railways Finance Corporation (IRFC) opened at a record high of ₹200 apiece on the National Stock Exchange (NSE) on Monday, continuing the upbeat momentum it showed last week.

The opening price was the highest-ever logged by IRFC shares, which were listed on the bourses following an initial public offering (IPO) in 2021.

At ₹200 per share, IRFC stock was up 100% in 2024 so far. This meant that the shares have doubled in value year-to-date. As compared to the last closing price, the scrip was valued higher by 13%.

At this price, the market capitalisation reached ₹2.6 lakh crore, making the rail PSU more valuable than at least 20 NIFTY 50 companies.

Minutes after the opening bell, however, the stock pared some of the gains. At 9:41 am, the shares were trading at ₹190.8, still up 7.31% as against the previous closing price.

The surge in IRFC stock coincided with the record highs logged by the benchmark indices at the opening bell. The NSE NIFTY 50 opened at an all-time high of 23,338.70 points, whereas, the BSE SENSEX opened at a record peak of 76,583.29.

The market rally came in the aftermath of the exit polls released on Saturday. The polls, which are the post-election surveys, showed the BJP-led National Democratic Alliance (NDA) retaining power with over 350 seats.

IRFC stock giving consistent returns

IRFC stock has given consistent returns to investors. In the 2022 calendar year, the PSU stock rose over 42%, while in 2023, IRFC share jumped 205%. Meanwhile, the stock is up over 88% so far in 2024.

On May 20, IRFC announced that its net profit for the March quarter jumped 33.6% year-on-year to ₹1,717 crore. Total revenue from operations, however, inched up 1.73% to ₹6,473 crore.

For full fiscal FY24, IRFC’s net profit stood at ₹6,412 crore, up 4% compared with the previous fiscal. Total revenue jumped 12% to ₹26,655 crore in FY24.

IRFC also recommended the final dividend of ₹0.7 per equity share of the face value of ₹10 each. This was in addition to the interim dividend of ₹0.80 declared on November 2, 2023, thereby making the total dividend for FY24 to ₹1.5 per share.