IRFC downgraded to 'Sell' by MarketsMOJO due to lack of price momentum

Indian Railway Finance Corporation (IRFC) has recently been downgraded to a 'Sell' by MarketsMOJO on October 14, 2024. This downgrade comes after the company reported flat results in June 2024.
One of the main factors contributing to this downgrade is the lack of clear price momentum, as indicated by the sideways technical trend. This trend has worsened since October 14, 2024, resulting in a -0.69% return for the stock.

However, there are some positive aspects to consider. IRFC has shown healthy long-term growth, with an annual growth rate of 17.03% in net sales and 17.04% in operating profit. Additionally, the company has a fair valuation with a price to book value of 3.9 and a return on equity of 12.7%.

It is worth noting that the majority shareholders of IRFC are promoters, which could potentially impact the company's decision-making and performance.

Despite the recent downgrade, IRFC has outperformed the market (BSE 500) with a return of 97.48% in the last year. However, its profits have only increased by 3.4%, resulting in a high PEG ratio of 9.1.

In conclusion, while IRFC has shown strong market-beating performance, the recent downgrade and lack of clear price momentum may be cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.