IRFC Share Price Today: 6.3% Jump Sparks Investor Optimism

Analysts recommend a SELL rating, as IRFC shares today enjoy a premium valuation
IRFC Share Price Today: 6.3% Jump Sparks Investor Optimism
Written By:
Aayushi Jain
Published on

Key Takeaways

  • IRFC share price trades at ₹138.45 as of 11.31 AM on May 16, 2025, after hitting an intraday high of ₹139.

  • The stock has a premium valuation with a price-to-earnings (PE) ratio of 27.80.

  • IRFC shares outperformed Sensex, rising 504.23% in the last three years.

Indian Railway Finance Corporation (IRFC) is responsible for financing the development and modernization of India's vast rail network. It is a leading PSU stock in the country. IRFC share price rose 6.3% on May 16, 2025, to ₹138.45 as of 11:31 am. The rise indicates investor optimism in the public sector undertaking.

Strong Market Performance

IRFC shares opened at ₹130.80, slightly up from the last closing price of ₹130.24. The stock quickly hit an intraday high of ₹139. The trading volume stands at 46.5 million shares, much above its 20-day average of 31.4 million shares. The value traded crossed ₹6,441 crore, reflecting added interest from institutional and retail investors.

IRFC share price chart shows gains of 6.56% as of 11.36 AM on May 16, 2025:

Trading close to its upper circuit limit of ₹143.26, IRFC's stock price is yet to cross its 52-week high of ₹229.00. The uptrend, however, could indicate the start of a recovery from the recent correction.

Financial Fundamentals Remain Solid

IRFC stock has a market capitalisation of ₹1,80,933 crore, making it one of the largest financial public sector enterprises of India. It posted trailing twelve-month earnings per share (EPS) of ₹4.98, representing a 1.26% year-on-year growth.

Despite the slow earnings expansion, IRFC has a premium valuation. Its price-to-earnings (PE) ratio of 27.80 is over two times the sector average of 12.42. Its price-to-book (P/B) ratio of 3.52 is similarly higher than the sector average, indicating that the stock is priced at higher levels.

The stock offers a dividend yield of 1.16%, returning a steady stream of income for investors. The book value per share is ₹39.38, supporting the valuation power of the company. The beta of 1.41 reveals above-average volatility, which may suit those who are willing to take risks.

Operational Strength and Strategic Role

IRFC's primary focus is to raise capital to fulfill Indian railway requirements through acquisition of rolling stock and infrastructure projects. The public sector unit follows a low-risk, lease-based model with long-term leases that provide stable cash flows. IRFC has high operating efficiency through its low-cost structure compared to its total assets. IRFC received Navaratna status from the Government of India in March 2025. This upgrade further solidified IRFC’s leadership in Indian public sector.

Investor Sentiment and Long-Term Outlook

The volume and share price rise indicate a strong optimism in the market for IRFC stock. Ongoing government support, infrastructure funding, and improving fundamentals make it a good long-term growth stock. Analysts recommend a ‘Sell’ rating due to the stock’s premium valuation.


In the last three years, IRFC's stock has risen 504.23%, far better than the 53.50% rise in the Sensex for the same period. Thus, strengthening it as a strong and high-growth company in the finance and NBFC space. The stock’s premium valuation calls for caution. However, IRFC's strategic value and performance consistency make it a good option for anyone looking to invest in PSU stocks.

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