IRFC shares: Multibagger tag gone, stock in a downtrend; what lies ahead?

Shares of Indian Railway Finance Corporation Ltd (IRFC) are in a downtrend since their record high on July 15, 2024. The stock reached a record high of Rs 229. During the 47% correction from the peak, the stock has lost its multibagger tag. The railway stock clocked gains of 611% in two years and 543% in three years in early October 2024, delivering multibagger returns to investors. The two year gains have now shrunk to 21% and three year to just 270% in the current session. 

IRFC stock slipped 2.33% to Rs 121.40 on Friday. The railway stock logged a turnover of Rs 19.13 crore with 15.57 lakh shares changing hands on BSE. Market cap of the firm fell to Rs 1.58 lakh crore. Later, the stock closed  2.41% lower at Rs 121.30. 

The IRFC stock fell to a 52 week low of Rs 108.75 on March 3, 2025 and a 52 week high of Rs 155 on February 1 2025.  

IRFC stock is neither overbought nor oversold on technical charts as the relative strength index (RSI) of IRFC stands at 54.3. 

IRFC stock is trading higher than the 20 day, 30 day, 50 day but lower than the 5 day, 10 day, 100 day, 150 day and 200 day moving averages.      

Aakash Shah, Research Analyst, Choice Broking said, "IRFC is showing a recovery after a prolonged downtrend, signalling a shift from bearish momentum toward a base-building phase. On the daily chart, price has rebounded sharply from the Rs 108– Rs 112 demand zone, highlighting clear rejection of lower levels and renewed buying interest. Structurally, the Rs 118–120 zone now acts as a key demand area. Holding above this zone keeps the recovery intact and favours continuation toward Rs 145–150 zone acts as a key resistance area."

Jigar Patel from Anand Rathi said, "Support will be Rs 124 and resistance at Rs 129. A decisive move above the Rs 129 level may trigger a further upside of 134 . The expected trading range will be between Rs 122 and Rs 134  for the short-term."

Abhijeet, an independent analyst said, "IRFC stock price is bearish on the Daily charts with strong resistance at Rs 137. A Daily close below support of Rs 125 could lead to a target of Rs 114 in the near term."

Riyank Arora, technical analyst at Mehta Equities said, "IRFC is showing early signs of a base formation after a prolonged correction. The stock is holding above the Rs 120–125 demand zone, indicating strong buying interest at lower levels. Momentum is gradually improving, with RSI sustaining above 50, suggesting a shift towards bullish bias. Price stability above key supports keeps the structure constructive. A sustained move above Rs 132–135 can trigger a recovery toward higher resistance levels."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "IRFC has witnessed a sharp rebound from the Rs 115–Rs 118 zone after an extended period of consolidation, indicating a recovery from lower levels. This improvement in volume highlights renewed interest and supports the recovery from lower levels. The Rs 125–Rs 122 zone now acts as immediate support, followed by a stronger base near Rs 118–Rs 120. As long as the stock holds above this band, the risk of revisiting recent lows remains limited. On the upside, a sustained move above Rs 133 would be required to extend the bullish trend toward Rs 145–Rs 152 in the near term."

IRFC borrows funds from the financial markets to finance the acquisition or creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways.