IFCI shares surge 21% in two days amid heavy trading volumes

IFCI shares jumped as much as 5.9%, hitting an intraday high of Rs 59.60 during Tuesday’s trading session. This marked the second consecutive day of gains, with the stock rallying about 21% over the past two days. The trading volume was notably high, with combined BSE and NSE turnover reaching around 12 crore shares, compared to its weekly average of 6 crore shares, signalling heightened investor interest.

On January 12, the NSE issued a note stating that there had been a significant increase in IFCI’s trading volume. To ensure investors have access to the latest information and that market interests are protected, the Exchange has written to the company, and a response is awaited.

IFCI is currently trading at a Price-to-Earnings (P/E) ratio of 34.79, a Price-to-Sales (P/S) ratio of 6.19, and a Price-to-Book (P/B) ratio of 0.88. These figures suggest that the stock is priced at a premium relative to its earnings but is slightly below its book value, reflecting a moderate valuation perspective for investors.

Stock Performance: Over the past year, IFCI has delivered a 13% return, while over a three-year horizon, the stock has surged an impressive 325%. This indicates that while the stock’s recent short-term gains have been modest, it has shown exceptional long-term growth, rewarding patient investors.

According to Trendlyne, the 14-day Relative Strength Index (RSI) stands at 63.3. Generally, an RSI below 30 signals an oversold stock, while values above 70 suggest overbought conditions. The current reading points to moderately strong momentum, approaching overbought territory but not yet at extreme levels. Additionally, IFCI is trading above all 8 key Simple Moving Averages (SMAs). This alignment across short- and long-term averages reflects strong upward momentum and positive technical sentiment in the market.

Shareholding Pattern (as of September 2025): Promoters hold 72.57% of the company’s shares, with no pledged shares, indicating high promoter confidence. Foreign Institutional Investors (FII) hold 2.6%, slightly up from 2.52% in June 2025, while Domestic Institutional Investors (DII) hold 1.6%, marginally higher than 1.59% in June 2025. Overall, the shareholding data reflects stable institutional participation alongside a dominant promoter stake, signalling long-term confidence in IFCI.

Financial Results (Q2 FY26): In the quarter ended September 2025, IFCI reported a net profit of Rs 143 crore, marking a 73% year-on-year growth. Revenue for the quarter stood at Rs 752 crore, down 4.3% YoY. While revenue has seen a slight decline, the sharp rise in profitability suggests better cost management or operational efficiencies, highlighting the company’s improving financial health.

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