Share of IRFC Limited is currently trading at around Rs.26/- Existing as well as prospective investors are asking for the target share price of the company for 2023, 2024 and 2025. In this article, we will discuss about the business prospects and financial performance of the company and based on our discussion and analysis will tell you the IRFC Share Price Target 2025,2024 & 2023.
The following questions are most frequently asked by the people with regards to the IRFC Limited. We will answer all the questions commonly asked by the existing as well as prospective investors, in this article.
- Is IRFC a good buy for long-term?
- What is the future of share of IRFC?
- Is IRFC the next multibagger?
- How is IRFC for long term?
- Is IRFC good for future?
- Is it good to buy IRFC shares now?
- What will be the share price of IRFC in 2023?
- What is IRFC Share Price Target 2025 ?
- IRFC Limited, or Indian Railway Finance Corporation Limited, is a wholly-owned government company that was established in 1986 to raise funds for the Indian Railways. The company is primarily engaged in financing the acquisition of rolling stock assets and project assets for the Indian Railways. In this article, we will discuss the business, financial, and technical analysis of IRFC Limited.
- Business Analysis:
- IRFC operates as a non-banking financial company and provides financial assistance to the Indian Railways. The company’s business model involves raising funds from the market by issuing bonds and then lending these funds to the Indian Railways at a slightly higher interest rate. IRFC has a long-standing relationship with the Indian Railways, and as a result, the company enjoys a monopoly in the Indian Railways financing market. This has helped the company maintain a dominant position in the market, and it has been successful in maintaining steady growth in its loan book over the years.
- In addition to its core business of providing financial assistance to the Indian Railways, IRFC has also been expanding its business by offering consultancy services and leasing of railway equipment to other countries.
- Financial Analysis:
- IRFC has been posting steady growth in its revenue and profits over the years. As of March 2021, the company’s total income was INR 17,120 crore, and its net profit was INR 4,599 crore. The company’s revenue growth rate over the past five years has been around 12%, while its net profit growth rate has been around 20%. The company’s return on equity (ROE) has also been consistently high, averaging around 15% over the past five years.
- The company’s debt to equity ratio is relatively high, at around 7.5x as of March 2021. However, this is not a significant concern as IRFC’s business model is heavily reliant on debt financing. The company’s interest coverage ratio has been consistently high, averaging around 4x over the past five years, which indicates that the company is comfortably able to meet its interest obligations.
- Technical Analysis:
- IRFC’s stock was listed on the stock exchanges in January 2021, and since then, it has been trading in a range of INR 20-30. The stock has been trading at a relatively low valuation, with a price-to-earnings (P/E) ratio of around 5x as of March 2021. This is likely due to the fact that IRFC is a government-owned company and does not have a track record of paying dividends to its shareholders.
- The stock has also been exhibiting low volatility, with a beta of around 0.5x as of March 2021. This suggests that the stock is less volatile than the overall market and can be considered a relatively safe investment option.
- Conclusion:
- IRFC Limited has a dominant position in the Indian Railways financing market and has been consistently posting steady growth in its revenue and profits. The company’s debt to equity ratio is relatively high, but this is not a significant concern given the nature of its business model. The company’s stock is trading at a relatively low valuation and exhibits low volatility, which makes it a relatively safe investment option. Overall, IRFC Limited appears to be a stable and reliable company that is well-positioned to benefit from the growth in the Indian Railways sector.
IRFC Share Price Target 2023
Based on the above discussion and analysis, the share price of IRFC may touch the level of around Rs. 40-50 in 2023.
IRFC Share Price Target 2024
Based on the above discussion and analysis, the share price of IRFC is likely to touch the level of around Rs.50-70 in 2024.
IRFC Share Price Target 2025
Based on the above discussion and analysis, the share price of IRFC is likely to remain in the range of Rs.70-100 in 2025.
Disclaimer : Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general guidance purpose only. Moneyinsight does not offer investment advice and does not encourage any action based on its content.
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