IRFC Share Price Gains 1.25% to Rs. 124.30, But Analysts Warn of Weak Trend

Overview:

• In spite of a 1.25% daily rise, the overall trend of IRFC is bearish, as confirmed by moving averages and Bollinger Bands.
  

• IRFC is overvalued with a P/E multiple of 23.77 compared to the industry average of 11.20.

• The stock is rated by all analyst coverage as a 'Sell', and this indicates poor technical and relative performance against the Sensex.

Indian Railway Finance Corporation (IRFC) share price rose 1.25% to Rs. 124.30 on October 29. The stock opened at Rs. 123.13, a tad above its last close of Rs. 122.77. It rose to an intraday high of Rs. 125 before dropping to the low of Rs. 122.64. Despite the share price hike, technical indicators reflect a bearish bias. This warrants caution as the short-term rally may not yet signal a trend change. Here’s an IRFC share price analysis based on Moneycontrol data.

Market Performance Snapshot

IRFC stock day's trading volume was 4.1 million shares, while the value of total turnover was about Rs. 5,113 lakh. VWAP for the stock was at Rs. 123.81, which reflects the fact that the majority of the transactions were around this level. Based on the prevailing market price, IRFC has a market capitalization value of Rs. 1.62 lakh crore and ranks among India's big names in the public sector financial space.

IRFC share price chart on TradingView shows gains of 1.60 % :

In the last year, IRFC share price has been highly volatile. The stock has fallen roughly 17.58% year-to-date versus the Sensex, an indicator of relative underperformance in a strong wider market. The counter is far below its 52-week high of Rs. 166.90 but well above its 52-week low of Rs. 108.04. IRFC share price’s all-time high is at Rs. 229, and its all-time low is only at Rs. 19.30, indicating the volume of earlier cycles.

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Technical Outlook: Bearish Momentum Enters Stronger Phase

The technical trend for IRFC shares on October 28, 2025, has turned from mildly bearish to firmly bearish with moderate strength.

Short-term and long-term daily moving averages (DMAs) are in a downtrend. At the same time, the Bollinger Bands indicate that the stock price is hovering around the lower limit of its volatility. Weekly trend analysis and the KST (Know Sure Thing) indicator also support a bearish position, with both reflecting weak near-term buying power.

The MACD (Moving Average Convergence Divergence) is a bit more mixed, though. While the weekly MACD is mildly bullish, suggesting some short-term consolidation, the monthly MACD is still mildly bearish. This suggests that short-term rebounds can occur, but the larger momentum is still negative.

Valuation and Fundamentals

IRFC stock is at a Price-to-Earnings (P/E) ratio of 23.77, which is above the sector average of 11.20. The Price-to-Book (P/B) ratio is 3.16, and the book value per share of the company is Rs. 39.38. With a dividend yield of 1.29%, IRFC shares are a favorite among income-oriented investors. However, growth traders seem to be cautious as a result of the recent technical weakness.

The TTM (trailing twelve months) EPS of the company is Rs. 5.23, a 6% year-over-year increase. Hence, indicating stable earnings but not enough to offset the technical downtrend.

Analyst Sentiment and Resistance Levels

Unexpectedly, analyst sentiment is still negative. As per coverage on Moneycontrol, 100% of the analysts currently give IRFC a 'Sell' rating, with no hold or buy recommendations. With respect to support and resistance price levels, the same are present at Rs. 124.59 (R2) and Rs. 125.13 (R3) for resistance and Rs. 122.23 (S1) and Rs. 121.69 (S2) for support. A close below Rs. 122 for an extended period might attract further selling pressure, while a breach above Rs. 125 might attract short-term attempts at recovery.

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Outlook

Overall, IRFC share price short-term trend continues to be bearish with moderate strength, supported by moving averages, Bollinger Bands, and relative underperformance vs. benchmark indices. Although short-term bounces will continue to occur, the overall technical backdrop suggests that new buyers should exercise caution and wait for a definitive trend reversal before initiating new long positions.

FAQs

1. Why did the IRFC share price rise today?

IRFC rose 1.25% to Rs. 124.30 as investors had lukewarm interest in public sector stocks. However, the advance was not supported by strong volumes, and technical metrics indicate the move could be short-lived.

2. Is IRFC stock bullish or bearish?

The technical picture is bearish with moderate strength at present. Moving averages, Bollinger Bands, and KST all point towards bearish momentum, but only the weekly MACD displays a weak bullish divergence.

3. What are the key support and resistance levels in IRFC stock?

IRFC is resisting at levels of Rs. 124.59 and Rs. 125.13, while the areas of support are located at Rs. 122.23 and Rs. 121.69. A decline below Rs. 122 would lead to additional weakness, while a close above Rs. 125 might indicate short-term relief.

4. How is IRFC valued compared with its sector peers?

IRFC is priced at a P/E ratio of 23.77, almost twice the industry average of 11.20, implying overvaluation. Its Price-to-Book value of 3.16 similarly indicates a premium valuation compared to competitors.

5. Are investors advised to buy or steer clear of IRFC stock at the moment?

Experts say stay cautious, as the technical direction is bearish and the stock continues to be overvalued. Long-term investors can wait for a confirmed reversal, and short-term traders can keep an eye on support levels closely.