Why is I R F C falling/rising?

Aug 25 2025 10:56 PM IST
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As of 25-Aug, Indian Railway Finance Corporation Ltd's stock price is at 124.35, down 0.52%, and has underperformed with a 32.16% decline over the past year. Despite positive financial results, concerns about overvaluation and low institutional ownership indicate challenges in attracting investor interest.
As of 25-Aug, Indian Railway Finance Corporation Ltd's stock price is currently at 124.35, reflecting a decrease of 0.65, or 0.52%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total decline of 1.93% during this period. Additionally, the stock's performance over the past week and month shows a decline of 0.40% and 5.83%, respectively, while its year-to-date return is down by 16.54%. Despite reporting positive results in June, including the highest profit before tax and profit after tax, the stock is trading at a premium compared to its peers, which may indicate overvaluation concerns. Furthermore, the low domestic mutual fund ownership of only 1.83% suggests a lack of confidence among institutional investors.

In the broader market context, the Sensex has shown a positive return of 0.45% over the past week and a slight gain of 0.21% over the past month, contrasting sharply with I R F C's negative returns. The stock's significant underperformance is evident as it has declined by 32.16% over the past year, while the broader market has only fallen by 2.11%. This disparity highlights the challenges faced by I R F C in attracting investor interest, particularly given its recent liquidity status and the overall market's more favorable conditions.
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