IRFC Share Price: Should you buy before the Dividend Record Date?

Shares of Indian Railway Finance Corporation (IRFC) will be in the spotlight on Monday as the company's board is set to meet on March 17, 2025, to consider a second interim dividend for FY25. Investors looking to benefit from the dividend must buy IRFC shares before March 20, 2025, as the record date for eligibility is March 21, 2025.

IRFC Share Price Performance

IRFC stock has dipped over 20% year-to-date (YTD), largely due to market volatility following Donald Trump's inauguration as the 47th U.S. President. Currently trading 49% below its 52-week high, the stock still holds strong fundamentals, making it an interesting pick for long-term investors.

Expert Outlook on IRFC Stock

According to Gaurav Goel, Founder & Director at Fynocrat Technologies, IRFC remains a solid stock despite recent weakness:

Steady financial growth – 15% average revenue growth, 11% median profit growth

Healthy ROE of 13.7% – Shows strong return-generating ability

Zero NPAs & strong capital adequacy ratio (CRAR) of 700% – Reflects financial stability

Debt-to-equity ratio of 8-9 (self-imposed limit: 10) – Allows room for expansion

While trading at a P/E ratio of 23.42 (slightly above the industry median of 20), its predictable earnings and government backing justify the premium valuation.

IRFC's Growth Potential

IRFC is strategically expanding beyond Indian Railways into high-margin projects, potentially boosting Net Interest Margin (NIM) and profitability by 3x-5x. The company also benefits from a ₹6,000 crore tax cushion, ensuring minimal tax liabilities for the next 4-5 years.

Should You Buy IRFC Stock?

Experts believe IRFC is well-positioned for long-term growth, given its:

₹4.5 lakh crore government-backed funding pipeline

Involvement in major infrastructure projects like Gati Shakti & India-Middle East-Europe Economic Corridor

Diversification into new sectors (power, coal, telecom, etc.)

IRFC Share Price Target

According to Sumeet Bagadia, Executive Director at Choice Broking, IRFC has strong support at ₹115 and ₹105 levels. Investors can consider:

Short-term target: ₹128 - ₹140

Stop-loss: ₹105 for existing investors, ₹115 for new buyers

About IRFC

IRFC, the third-largest government NBFC in India, reported:

Revenue: ₹26,600 crore

Profit after tax: ₹6,400 crore (FY24)

AUM: ₹4.61 lakh crore

Market cap: ₹2,00,000 crore

The company continues to expand its financing portfolio, including projects in renewable energy, metro rail, container trains, and power transmission.

Disclaimer: This article reflects expert opinions and does not constitute financial advice. Investors should consult certified professionals before making any decisions.