Next multibagger? THIS under Rs 40 PSU stock gave STELLAR 50% return in one month; hits lifetime high

IRFC Share Price: Amid this record high, Indian Railway Finance Corporation (IRFC) shares also hit a lifetime high to close at Rs 33.50 per share, up by 5.35 per cent.

The IRFC IPO was priced in the range of Rs 25 to Rs 26 per share. Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways.

IRFC Share Price: Stock markets today hit a fresh lifetime high and with that, several Public Sector Undertaking stocks did wonders at the exchanges. The BSE Sensex and NSE Nifty ended at fresh lifetime highs amid foreign fund inflows, and a decline in crude oil prices. The 30-share BSE Sensex climbed 211.16 points or 0.34 per cent to settle at 62,504.80 while the broader NSE Nifty gained 50 points or 0.27 per cent to end at a record closing 18,562.75.

IRFC Share Price Today

Amid this record high, Indian Railway Finance Corporation (IRFC) shares also hit a lifetime high to close at Rs 33.50 per share, up by 5.35 per cent. IRFC stock opened at Rs 32 apiece on NSE Nifty today and surged over 5 per cent to close at Rs 33.5 after hitting a fresh high of Rs 34.80 at 10:10 AM. What is interesting is that the IRFC shares have given a stellar return in the last one month. Historical data shows that the IRFC shares have surged around 47.9 per cent in the last one month. 

IRFC Dividend News

It may be recalled that IRFC had recently announced an 8 per cent interim dividend to its shareholders. This means the company will give Rs 0.80 dividend per share on the Rs 10 face value of each share.

Weeks ago, IRFC shares were trading below the listing price causing concerns to the shareholders. Despite the strong background, the IRFC shares had failed to yield better returns but things are changing now, suggesting the current market trends.

IRFC IPO

The IRFC IPO was priced in the range of Rs 25 to Rs 26 per share. Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways. The company was set up in December 1986 for mobilizing funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways. However, the company has zero NPA according to various reports. IRFC does 45-55% funding in rail infra projects. The company gives loans at very low interest. It gives loans to the Railways against the government guarantee.

IRFC Revenue

According to various reports, the company has only 37 employees but now its net worth has crossed Rs 41,000-crore mark. Due to the government exemption, the company does not need to pay any tax. The company reportedly operates out of a hotel in Delhi. IRFC's funding cost in FY22 stood at 6.42 per cent.

Last month, the IRFC had signed an agreement with India Infrastructure Finance Company Ltd (IIFCL) to finance railway infrastructure projects. The company's revenue from operations had increased by 51 per cent to Rs 20,302 crore between 2019-20 and 2020-22. The company's profit nearly doubled to Rs 6,090 crore in the same period. The company had reported a profit of Rs 2,045 cr in 2017-18 and Rs 2,254 crore in 2018-19.

According to experts, given the company's performance, it won't be a surprise if IRFC share goes on to become the next multibagger.