India has one of the world’s largest rail networks in terms of passenger traffic. 4th largest rail freight carrier in the world.
Indian Railway Finance Corporation (IRFC) plays a crucial role in propelling India’s vast railway network forward. It acts as the dedicated funding arm, mobilizing resources through capital markets and freeing up government budget constraints.
This enables Indian Railways to execute its ambitious modernization and expansion plans, including acquiring new locomotives, and coaches, and upgrading infrastructure. IRFC’s financial flexibility allows for faster project completion, boosting efficiency and connectivity across the country.
By facilitating these crucial investments, IRFC not only fuels economic growth but also enhances passenger experience and contributes to a greener future through electrification initiatives. Its financial expertise and market reputation make IRFC an indispensable force in transforming India’s railway system into a modern and dynamic engine of progress.
IRFC : The Bullish Run
IRFC has taken the stock market by storm, witnessing a staggering 500% surge in just 10 months! This astronomical rise has propelled its market cap beyond Rs 2.2 lakh crore, crowning it the king of Indian railway PSUs. The climb is even more impressive considering its near 600% ascent from its 52-week low of Rs 25.45 last March.
This phenomenal performance speaks volumes about IRFC’s robust financial health, its pivotal role in India’s railway modernization, and investors’ unwavering faith in its future. In short, IRFC is riding a wave of success, transforming the Indian railway landscape one track at a time.
Based on the company’s previous performance, we will do a fundamental analysis of the IRFC share price when we will also look at the expert’s opinions and experts’ targets and we also see the brokerage target.
According to the money control website, 120 investors have their reviews according to them 95% have a buy and 5% as a sell.
According to the trading view forecast 34% of the current price can be achieved which means the stock could reach 32 rupees.
If you are just a beginner and want to know more about Share market basics you can read “Share Kaise le”(How to buy Share in Hindi)
IRFC Company Overview
IRFC, or Indian Railway Finance Corporation, is a public sector organization established in 1986 to finance the expansion and modernization of the Indian Railways. It raises funds through bonds and financial instruments, lending them for capital expenditures.
The Indian Railway Finance Corporation (IRFC) is like a government bank that gives money to build and improve trains and train stations in India. It helps make sure these projects have enough money to work well and finish on time.
IRFC company was incorporated in 1986. IRFC has a market cap of ₹ 53,254.16 Crores. The company borrows money from the financial Market to create an asset that is given in the lease for the Indian rail corporation.
Company Name | Indian Railway Finance Corporation Ltd |
Market Cap | ₹ 53,254.16 Cr |
Debt | ₹ 4,18,935 Cr |
P/E Ratio | 8.22 |
Sector P/E | 6.50 |
Debt to Equity ratio | 9.21 |
ROE | 14.7 % |
Dividend Yield | 2.03 % |
52 Week High/Low | ₹ 41.7 / 20.6 |
Profit Var 3Yrs | 25.7 % |
Website | https://irfc.co.in/ |
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IRFC Company Business Model
IRFC is mainly in the business of Leasing, Lending, and borrowing operations. IRFC’s primary business is to provide loans and leases to the Railways for the acquisition of rolling stock, locomotives, coaches, wagons, and other assets.
IRFC follows an asset-light business model with no significant fixed assets on its balance sheet. It earns income primarily through lending to the Indian Railways.
IRFC is poised to play a major role as the Indian Railways expands and requires larger-scale investments over the next few years. Its finances are closely tied to the growth of the Railways.
It also provides loans to other railway entities, such as Rail Vikas Nigam Limited (RVNL) and IRCON
IRFC’s business model can be summarized in the following steps:
- IRFC raises funds from the financial markets.
- It uses the funds raised to finance the acquisition of railway assets, such as rolling stock (trains), locomotives, and coaches.
- IRFC then leases these assets to the Indian Railways on a long-term basis.
- The Indian Railways pays IRFC a lease rental for the use of these assets.
- IRFC uses the lease rental income to repay its debt and generate profits.
IRFC Business Key Features
Here are some of the key features of IRFC’s business model:
- Focus on a single customer: IRFC’s sole customer is the Indian Railways. This focus allows IRFC to develop a deep understanding of the Indian Railways’ needs and to tailor its products and services accordingly.
- Long-term contracts: IRFC leases its rolling stock assets to the Indian Railways on a long-term basis. This provides IRFC with a steady stream of revenue over a long period.
- Government support: IRFC is a public sector undertaking, and it has the full support of the Indian government. This gives IRFC access to a wide range of financial resources and government guarantees.
- Strong credit rating: IRFC has a strong credit rating, which allows it to raise funds at competitive interest rates
2024 | Lower Targets | Higher Targets |
---|---|---|
January | ₹133.41 | ₹193.41 |
February | ₹193.41 | ₹220.45 |
March | ₹201.88 | ₹225.86 |
April | ₹225.86 | ₹229.48 |
May | ₹229.83 | ₹238.43 |
June | ₹233.57 | ₹245.55 |
July | ₹240.78 | ₹260.22 |
August | ₹236.59 | ₹260.78 |
September | ₹254.70 | ₹268.28 |
October | ₹258.22 | ₹272.06 |
November | ₹264.87 | ₹293.55 |
December | ₹282.61 | ₹297.55 |
IRFC is a Company that has a monopoly business. company collects funds for rail development. As we are all aware India railways are currently in development mode.
The past few months’ stock has given good returns last 3 months 27.56% return and the last 1 Year’s return is 94.32%.
2025 | Lower Targets | Higher Targets |
---|---|---|
January | ₹282.84 | ₹311.27 |
February | ₹283.64 | ₹308.62 |
March | ₹289.44 | ₹323.15 |
April | ₹305.27 | ₹324.87 |
May | ₹315.88 | ₹338.65 |
June | ₹307.99 | ₹348.39 |
July | ₹326.56 | ₹346.96 |
August | ₹328.75 | ₹356.65 |
September | ₹339.20 | ₹384.36 |
October | ₹346.49 | ₹385.52 |
November | ₹360.73 | ₹393.67 |
December | ₹376.76 | ₹408.69 |
According to current market analysis, the company’s stock price can reach ₹409.80 per share by the end of 2025.
Company Net profit increases year on year. Mar 2022 Net profit was 6,090 Cr and Mar 2023 6,337 Crores increase of 3.8% from previous years. Company continuously profit is increasing.
As we operate the profit growth of IRFC company in J-Curve. Which is great for the company. In March 2023 Company’s operating profit was Rs 23,758 Crores against the previous year and in Mar 2022 was Rs 20,177 Crores. The company has a strong balance sheet which helps the company to grow fast.
2030 | Lower Targets | Higher Targets |
---|---|---|
March | ₹830.18 | ₹1,024.48 |
June | ₹851.27 | ₹1,051.75 |
September | ₹876.61 | ₹1,076.34 |
December | ₹888.95 | ₹1,106.92 |
In January 2040 IRFC stock price range between Rs 220 to Rs 231. Mid of the Year 2040 stock price is around Rs 280 and End of this year stock price can move to Rs 400.
The expected share price Target in 2050 is Rs 1500. The company extends loans to other entities of MoR, viz., Rail Vikas Nigam Ltd and IRCON International Limited.
Years | Minimum Target | Maximum Target |
2024 | ₹110 | ₹ 297 |
2025 | ₹297 | ₹405 |
2030 | ₹710 | ₹988 |
2035 | ₹1100 | ₹1200 |
2040 | ₹1100 | ₹1600 |
2045 | ₹1843 | ₹1900 |
2050 | ₹2000 | ₹2100 |
IRFC Company Strengths and Weaknesses
Strength
- Promoter holding remains constant at 86.36%.
- Stock P/E is 8.35.
- ROE Past 3 years is 15%
Weaknesses
- FII 0.01% and DII 0.60% decrease Holding.
- Stock is trading at 1.16 times its book value.
Conclusion
Overall Irfc is a financially stable company. Roe is also good for the company. Company in business with Indian railways. Indian railways need to be more developed. So this help to grow Irfc as well In the future.
Disclaimer
Any target mentioned on this website is taken by our analysis, and we are not SEBI registered advisors, our objective is only to provide detailed information related to the company’s business to the public. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions.
FAQ
Is IRFC Debt free company?
No, IRFC has a debt.
What is the P/E ratio IRFC?
The P/E ratio is IRFC stock is 8.35.
What will be IRFC share price in 2025?
IRFC share price target in 2025 minimum is Rs 60 and the maximum is Rs 90.
Is IRFC overvalued?
No, the intrinsic value of IRFC Stock is 175.25 INR. Stock is Undervalued.
What is the share price target for IRFC in 2023?
As of now, IRFC stock is trading at 74.85.
Will IRFC give dividends in 2023?
For the year ending March 2023, Indian Railway Finance Corporation has declared an equity dividend of 15.00% amounting to Rs 1.5 per share.
What is the IRFC Share Price Target in 2024?
The IRFC share price is expected to touch ₹296.55 by the end of 2024.
What is the IRFC Share Price Target in 2025?
The IRFC share price is expected to touch ₹405.60 by the end of 2025.
What is the IRFC Share Price Target in 2026?
The IRFC share price is expected to touch ₹522.19 by the end of 2026.
What is the IRFC Share Price Target in 2027?
The IRFC share price is expected to touch ₹647.23 by the end of 2027.
What is the IRFC Share Price Target in 2028?
The IRFC share price is expected to touch ₹775.31 by the end of 2028.
What is the IRFC Share Price Target in 2029?
The IRFC share price is expected to touch ₹880.25 by the end of 2029.
What is the IRFC Share Price Target in 2030?
The IRFC share price is expected to touch ₹988.44 by the end of 2030.
What is the IRFC Share Price Target in 2035?
The IRFC share price is expected to touch ₹1200 by the end of 2040.
What is the IRFC Share Price Target in 2040?
The IRFC share price is expected to touch ₹1600 by the end of 2040.
What is the IRFC Share Price Target in 2045?
The IRFC share price is expected to touch ₹1900 by the end of 2045.
What is the IRFC Share Price Target in 2050?
The IRFC share price is expected to touch ₹2100 by the end of 2050.