Shares of Indian Railway Finance Corporation Ltd (IRFC) were in focus on Monday as the company’s board was set to meet to discuss an interim dividend for its shareholders. The railway financing PSU also disclosed the record date for eligibility, should the dividend be approved.
Board Meeting & Dividend Decision
IRFC informed the stock exchanges that its board of directors would convene on Monday, March 17, 2025, to deliberate on declaring the second interim dividend for the financial year 2024-25. If approved, the record date to determine eligible shareholders will be Friday, March 21, 2025.
IRFC Share Price Movement
Ahead of this crucial meeting, IRFC’s stock saw a rise of nearly 1.7%, reaching Rs 119.70 on Monday. This pushed the company’s market capitalization close to Rs 1.6 lakh crore. In the previous session on Thursday, the stock closed at Rs 117.70. However, it remains significantly below its 52-week high of Rs 229.05, recorded in July 2024, reflecting a 48% decline from that peak.
IRFC Dividend Payment History
Since its listing in 2021, IRFC has consistently rewarded investors with dividends twice a year. Here’s a look at its past payouts:
| Year | Total Dividend per Share (Rs) |
|---|
| 2021 | 1.82 |
| 2022 | 1.43 |
| 2023 | 1.50 |
| 2024 | 1.50 |
With a dividend yield of 1.26%, IRFC remains a consistent income-generating stock for investors.
IRFC Financial Performance
For the third quarter ending December 2024, IRFC reported a 2% year-on-year (YoY) increase in net profit, reaching Rs 1,630.66 crore. Revenue from operations stood at Rs 6,763.43 crore, reflecting a 0.4% YoY rise. The Government of India continues to be the majority stakeholder, holding 86.36% in the company.
Company Background & Stock Performance
Established in 1986, IRFC primarily finances the acquisition of rolling stock assets, leases railway infrastructure, and lends to entities under the Ministry of Railways. The company went public in January 2021, raising Rs 4,633.38 crore through an IPO at Rs 26 per share. Since then, IRFC has delivered massive returns, surging nearly 360% from its IPO price.
Analyst Rating & Target Price
Despite its strong growth, Investec has issued a ‘sell’ recommendation on IRFC, setting a price target of Rs 50. This suggests that the firm expects the stock to decline by another 50% from its current levels.
Investors will now keep a close watch on the board’s decision regarding the second interim dividend and any potential impact on IRFC’s share price in the coming days.
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