📈 The Underdog that Quietly Became a Multibagger (While You Followed Finfluencers)
EduInvesting.in | May 2025
“Beta, invest in PSUs. They are slow, but steady.”
— Your Dad, who bought BHEL at ₹12 and now won’t shut up
While you were double-tapping selfies, ranting about Zomato delivery delays, and watching Finfluencers flex ₹10 lakh portfolios (sponsored by broking apps, obviously) — one silent PSU gem just kept compounding.
It didn’t trend.
It didn’t hype.
It just made money.
Let’s talk about IRFC — the Indian Railways Finance Corporation — a stock that made 400% gains look boring.
🚆 The PSU That Didn’t Care About Clout
| 📊 Listing Price (2021) | 💀 Post-Listing Low | 🚀 May 2025 Price | 💥 Gain from Lows |
|---|---|---|---|
| ₹26 | ₹19 | ₹99 | +420% |
Yes. IRFC. The stock you ignored at ₹20 because it looked too government-y.
Now it’s buying railway coaches like you buy Maggi.
🏛️ But Wait… What Even is IRFC?
No, it doesn’t operate trains.
It doesn’t run stations.
It doesn’t serve samosas.
IRFC is the financial brain of Indian Railways.
Think of it like the UPI of Indian trains — silently making everything work.
It borrows at low rates, lends to Indian Railways for projects (trains, wagons, electrification), and gets repaid — with full government backing.
🧠 It’s basically SBI but for locomotives.
🧾 What’s Driving the Rally?
1. 🚄 Massive Railway Capex Push
Union Budget 2024 allocated over ₹2.4 lakh crore to Indian Railways — the biggest ever.
More Vande Bharat = more funding = more IRFC revenue.
2. 🏦 Steady Income, High Dividends
IRFC has net interest margins of 1.3–1.5%, but with ₹4–5 lakh crore loan book, even that prints money.
| 📊 Metric | 🔢 Value (FY24) |
|---|---|
| Revenue | ₹23,891 crore |
| Net Profit | ₹6,235 crore |
| Dividend Yield | ~3.5% |
| Debt | ₹4.1 lakh crore |
Yes, it’s debt-heavy. But this is G-sec-backed debt — not shady builder bonds.
3. 💼 Government Holding Down, Market Holding Up
Govt stake reduced gradually = more free float = more liquidity = more FII/retail interest.
IRFC went from “ignored IPO” to market darling, just like PSU crushes of 2023: RVNL, BHEL, and BEL.
📉 The Plot Twist You Didn’t Notice
This wasn’t a one-time re-rating. It was compound + narrative shift.
While everyone bet on IT, FMCG, and Adani magic, IRFC quietly doubled, then tripled, then quadrupled.
And no finfluencer made a Reel about it. Shocking.
📊 Peer Comparison: PSU Stars of the Same Batch
| 🏢 Company | 🚀 Gain Since 2023 | 🧠 Why It Rallied |
|---|---|---|
| IRFC | +400% | Rail Capex + Stability |
| RVNL | +300% | Infra EPC + Project wins |
| BHEL | +250% | Defence + Infra Re-rating |
| HAL | +380% | Defence + Order Book Boom |
| BEL | +180% | Electronics + PSU buzz |
Moral of the story: Boring became beautiful.
🧠 EduInvestor Verdict: Should You Still Buy?
| ✅ Pros | ⚠️ Cons |
|---|---|
| Strong government support | Purely interest-margin dependent |
| Regular dividends | No pricing power |
| Railways will keep needing funding | Sudden rate hikes could squeeze margins |
| Debt risk is sovereign-backed | PSU volatility still a factor |
🎯 So… Buy, Hold or Bail?
| Investor Type | Verdict |
|---|---|
| Long-term conservative | ✅ Buy on dips |
| Dividend lover | ✅ Great pick |
| Trader looking for spikes | ⚠️ Not your stock |
| “I need it to 2x in 3 days” | ❌ Go gamble |
📦 Final Thoughts
IRFC didn’t run campaigns.
Didn’t create FOMO.
Didn’t say “To the moon.”
It just climbed… one track at a time.
So next time your group chat screams “Buy this IPO!” —
…ask yourself, what’s the IRFC of today hiding in plain sight?
Because in this market —
Sometimes the multibagger doesn’t shout. It just compounds.
