Should You Hold IRFC Shares until End of 2022?

Investing in a stock can be a strategic decision, particularly when you have a significant amount of shares in a company like IRFC. With 575 shares currently trading below your average purchase price of Rs. 26.00, it's natural to wonder if holding onto these shares until the end of 2022 is wise. In this article, we'll explore the reasons why you might consider holding onto this stock and offer some guidance on the best strategy moving forward.

Understanding IRFC as a PSU

IRFC (India Refinance Corporation) is a Public Sector Undertaking (PSU) in India, known for its role in providing finance to state, central, and international projects. As a PSU, IRFC typically offers certain advantages, including stable performance and regular dividends. Holding onto IRFC shares can be a sound investment decision due to the company’s consistent track record and the potential for future growth.

Historical Context and IPO Performance

Your shares of IRFC were likely acquired through an Initial Public Offering (IPO). The IPO listing price was at Rs. 24.90, with a closing price of Rs. 24.80. It's important to recognize that IPOs are not typically intended for immediate profit but rather for long-term growth. Many investors, including those who purchased shares on the listing day, may have made impulsive decisions to sell, driven by short-term fluctuations in stock prices.

Why Consider Long-Term Holding?

Holding onto IRFC shares until the end of 2022 could offer several advantages:

Dividends: As a PSU, IRFC is likely to distribute regular dividends, providing a steady source of income. Stable Performance: The company has demonstrated a consistent performance, suggesting that it is a stable investment option. Market Reactions: Waiting until February to see how the stock reacts to the budget announcement can provide valuable insights into its future trajectory.

Waiting for Budget Impact

The Indian government’s budget announcement can have a significant impact on the stock market. Waiting until early February to observe the stock's reaction to the budget can help you gauge market sentiment towards IRFC. If the stock shows a positive reaction, holding it for at least six months could be a prudent decision.

Conclusion

In conclusion, holding onto IRFC shares until the end of 2022 can be a wise move. As a PSU stock, it is likely to provide reliable returns through dividends and consistent performance. By waiting for the February budget impact and not succumbing to short-term market fluctuations, you can make a well-informed decision. Keep a long-term perspective and stay patient, as this is a strategic investment that could yield positive results over time.

For more information on investment strategies and trends in the Indian stock market, continue to monitor relevant news and financial reports. If you have further questions or need more guidance, consulting a financial advisor can provide valuable insights tailored to your specific needs.