IRFC Share Price Target 2025

IRFC is among the most valuable stocks in the Indian share market. If you want to invest in this stock, you must do a detailed fundamental analysis. In this article, we see the IRFC share price target 2025 and 2030. Also, we see its fundamentals.

IRFC Share Price

To analyze the Indian Railway Finance Corporation Ltd, as of April 21, 2023, IRFC’s share price is 28.10.

To generate a future IRFC Share Price Target report based on the analysis of fundamentals of IRFC company research, technical analysis of chart results and financial reports of IRFC. But here, the price of future IRFC is calculated approximately. Before investing, investors must do company research and technical analysis of IRFC chart results.

Also Read: Tata Power Share Price Target 2025 and 2030

Also Read: Yes Bank Share Price Target 2030

IRFC Share Price Target 2023, 2024, 2025, 2026, 2027, 2030, 2040, 2050

(Disclaimer: We strongly encourage individuals to conduct their research or seek guidance from a qualified financial advisor before making any investment decisions in the share market. Remember, investing in the share market can be a complex and challenging endeavor, and it is always wise to exercise caution and due diligence.)

In January 2021, Indian Railway Finance Corporation Limited (IRFC) launched its IPO shares in the market. And the company is listed on the Bombay and the National Stock Exchange of India.

The abbreviation for IRFC is the Indian Railway Finance Corporation. IRFC was founded in 1986. It is a public-sector organization. It operates under the Ministry of Railways of the Government of India. And its primary goal is to collect funds from the market, which can be used to finance the Indian Railways.

The primary responsibility of the IRFC is to provide funds to purchase stock assets for infrastructure projects related to the railways. IRFC obtained funds from both internal and international markets through financial instruments. And those funds are used for various capital expenditures of the Indian Railways.

Overview of IRFC

IRFC Limited is a government-owned company. The president of India held the ownership of IRFC shares. The government of India appointed a board of directors to govern the operations of IRFC Limited.

IRFC used a multifaceted approach for uninterrupted financial operation, which includes countless financial instruments such as market borrowings, external commercial borrowings and tax-free bonds.

IRFC provides financial assistance for developing the infrastructure of the Indian railways. And it gives lease financing support for buying stock assets such as wagons, coaches and locomotives. Since 2016, IRFC got the authorization for masala bonds issuing, and it is expanding to foreign markets.

The Business Pattern of IRFC Limited

Source for Fundraising: IRFC Limited has several financial instruments, such as internal market borrowings, external commercial borrowings and tax-free bonds issued in domestic and international markets.

Lending Funds: IRFC provides funds to the Indian Railways in two ways, both lending loans and lease financing to the Indian Railways. And funds are used for the procurement of rolling stock assets for the development of railway infrastructure.

Lower Interest Rates: Compared to other commercial banks, IRFC charges a lower interest rate on its loans for Indian Railways. Because IRFC has a solid financial position and Indian government ownership.

Robust Risk Management: IRFC manages the risk by diversifying its fund sources. And it continuously monitors the borrowers’ worthiness and assesses their creditworthiness, whether the borrower has capabilities or not for the new loan.

Income: IRFC Limited receives payment in two ways. These are to receive interest income on their loan from the Indian Railways. And to receive lease rental income on its lease financing activities.

Fundamental Analysis of IRFC

Total Share Capital: Compared to the previous year, total share capital remains the same as of March 2022. In March 2022, the entire share capital was Rs. 13,068 crores.

Total Shareholder Funds: Compared to the previous year, total shareholder funds increased as of March 2022. In March 2022, the total shareholder fund was Rs. 40,996.34 crores.

Total Current Liabilities: Compared to the previous year, total liabilities increased as of March 2022. In March 2022, the total current liabilities were Rs. 408,456.67 crores.

Total Assets: Compared to the previous year, total assets increased as of March 2022. In March 2022, the total assets were Rs.449,980.22 crores.

Dividend Yield: IRFC Limited’s dividend yield is 5.10%. IRFC Stock is giving a reasonable dividend yield of 5.10%. The company has been keeping a healthy dividend payout of 20.4%.

Earnings per Share (EPS): As of March 2022, IRFC’s EPS for 2022 was Rs.4.98.

Market Capitalization: As of March 2022, IRFC’s market capitalization was Rs. 36,670.23 crores. The free-float market capitalization was Rs.5,135.66 crores.

ROE (Return on Equity): As of March 2022, IRFC’s return on equity is 14.93. And it is a low return on equity. The company has had a low return on equity of 13.8% over the last three years.

PE (Price Earnings): As of March 2022, IRFC’s PE is 5.64.

Book Value: IRFc’s Book value is Rs.33.3. Stock is trading at 0.84 times its book value.

Net Profit: Compared to the previous year, the net profit increased as of March 2022. In March 2022, the net profit was Rs. 6,090 crores.

IRFC Share Price Target 2025

After analyzing IRFC Limited’s records and financial reports’ fundamentals, IRFC’s share price prediction will be 57-64 rupees in 2025.

IRFC Share Price Target 2030

The IRFC’s financial report shows IRFC is taking several steps to enhance its financial position. According to the analysis of the Financial Report for 2021-22, the company has produced a good profit growth of 45.5% CAGR over the last five years. So the IRFC’s share price prediction will be 136-144 rupees in 2030.

IRFC Share Price Target 2040

The creditworthiness of the Indian Railway Finance Corporation (IRFC) has been consistently excellent, as attested by its high credit ratings from reputable rating agencies, including CRISIL, ICRA, and CARE. These ratings indicate the company’s sound financial health and capacity to fulfil its financial responsibilities. So the IRFC’s share price prediction will be 237-248 rupees in 2040.

About IRFC Limited

Indian Railway Finance Corporation (IRFC) is a public sector company in India that specializes in mobilizing financial resources for the expansion and operation of the railway sector through the company’s involvement in capital markets and other forms of borrowing. While the Ministry of Railways holds administrative control over IRFC, most of its ownership belongs to the Government of India.

IRFC Limited was founded on December 12, 1986, and Its headquarters is in New Delhi, India. Amitabh Banerjee is the chairman and MD of IRFC Limited. IRFC provides services for leasing, lending and borrowing. In 2020, the revenue income of IRFC was Rs. 13,823.45 crores, and its operating income was Rs. 13,740.39 crores.

FAQs