Why is I R F C falling/rising?

Aug 12 2025 10:54 PM IST
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As of 12-Aug, Indian Railway Finance Corporation Ltd's stock price is declining at 125.00, down 1.42%, and has significantly underperformed the market with a 32.27% drop over the past year. Despite reporting strong profits in June, low mutual fund holdings and a high PEG ratio indicate investor caution regarding its valuation and growth prospects.
As of 12-Aug, Indian Railway Finance Corporation Ltd is experiencing a decline in its stock price, currently at 125.00, reflecting a decrease of 1.8 or 1.42%. The stock has underperformed its sector by 0.51% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has fallen by 2.57%, and it has shown a significant decline of 32.27% over the past year, contrasting sharply with the Sensex, which has only decreased by 0.74% during the same period. While the company reported positive results in June, including the highest profit before tax and profit after tax, the stock's performance remains concerning due to its substantial underperformance relative to the market and low domestic mutual fund holdings, which may indicate a lack of confidence among institutional investors.

In the broader market context, the stock's recent performance has been notably weaker than the benchmark, with a year-to-date return of -16.11% compared to the Sensex's gain of 2.68%. This stark contrast highlights the challenges faced by I R F C, particularly as it has underperformed the market significantly over the last year, where the BSE500 index posted a negative return of only -2.11%. The company's low domestic mutual fund ownership and the high PEG ratio of 6.9 suggest that investors may be cautious about its valuation and future growth prospects, contributing to the downward pressure on the stock price.
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