IRFC share price: Navratna, dividend stock dips 48% from record high. Should you buy?

IRFC share price: Indian Railway Finance Corporation Ltd (IRFC) shares have dropped 48% from record high. IRFC share price has been in focus today after the company's Board of Directors reviewed and authorized the payment of a second interim dividend of ₹0.80 per share for shares with a face value of ₹10 each, for the financial year 2024-25.

Additionally, as communicated via a letter dated 10th March 2025, the "Record date" set for identifying eligible shareholders for the payment of this Second Interim Dividend, as announced by the Board, is Friday, 21st March 2025.

The dividend will be credited to the accounts of the shareholder(s), or the corresponding dividend warrant(s) will be sent out within thirty (30) days following the declaration of the Second Interim Dividend.

IRFC share price today

IRFC share price today closed at ₹118.75 apiece on the BSE, the stock touched an intraday high of ₹119.70 per share and an intraday low of ₹117.40 apiece.

Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi explained that in the recent short-term trend analysis of the IRFC share price, it was found that it is currently in an oversold zone. Looking at the daily chart, a notable bullish reversal pattern has emerged. This technical pattern suggests a temporary retracement in the stock's price, potentially reaching around ₹128. IRFC share price is currently maintaining a crucial support level at ₹110. A buying opportunity is emerging, given the current market price of ₹118. This suggests that investors consider purchasing the stock at its current price, anticipating a rise towards the identified target of ₹128.

Should you buy?

According to Gaurav Goel, Founder & Director at Fynocrat Technologies, with a government-backed funding pipeline of ₹4.5 lakh crore and involvement in large-scale projects like Gati Shakti and the India-Middle East-Europe Economic Corridor, IRFC share price is well-positioned for long-term growth. While the stock may see short-term corrections, its strong financials, steady demand for railway financing, and expansion into new sectors make it a solid long-term bet.

One key vivacious is IRFC's strategic diversification beyond Indian Railways. It is venturing into higher-margin projects, where returns could be 3x-5x higher, boosting its Net Interest Margin (NIM) and profitability. The ₹6,000 crore cushion in unabsorbed depreciation also ensures no significant tax liabilities for the next 4-5 years, supporting better earnings retention.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.