IFCI's stock jumped about 7% on Wednesday after the company announced it had sold its 10% holding in North Eastern Development Finance Corporation (NEDFi).
What happened?
The bank sold 1 crore shares it bought for Rs 10 crore. The sale fetched Rs 121.77 crore, giving IFCI a big profit on the investment.
How the share price moved
- Closing price: Rs 54.12, up 7.30%.
- Still below the 52‑week high of Rs 74.50.
- Shares have fallen about 13% over the last year but are up roughly 300% in three years.
Valuation and technical snapshot
The stock trades at a price‑to‑earnings (P/E) ratio of about 35.8 and a price‑to‑book (P/B) ratio of 0.9. The 14‑day RSI sits at 48.8, showing neutral momentum, while the price is above five of its eight key moving averages, hinting at a mild bullish trend.
Institutional buying
Foreign Institutional Investors (FIIs) raised their holding from 2.52% to 2.60% in the September 2025 quarter. Mutual funds also nudged up their stake from 0.11% to 0.12%, suggesting growing confidence.
Financial results
For the September 2025 quarter, IFCI reported revenue of Rs 752 crore, a 4.3% drop year‑on‑year. However, net profit jumped 73% to Rs 143 crore, indicating better cost control and efficiency.
Bottom line
The stake sale gave IFCI a sizable cash boost and helped lift the share price. While the stock still trades below its recent high, the profit surge and modest institutional buying could be encouraging signs for retail investors.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.