But the IRFC stock has caught some pace due to which many investors have come into bullish mode regarding this share. So today in this article we are going to value IRFC share in detail. In this we will consider all important aspects and know whether investments in this company are beneficial or not.
We will also have a special discussion on IRFC Share Price Target 2023, 2024, 2025, 2026, 2030
IRFC Share Price Target 2023, 2024, 2025, 2026, 2030
Indian Railway Finance Corporation ( IRFC ) is a wholly owned subsidiary of Indian Railways. This company was established on 12 December 1986. In 2021 the company brought its IPO and was listed on the market.
Company Information: |
|
|---|---|
| Chairman | Mr. Amitab Banerjee |
| Headquarter | New Delhi, India |
| Market Capitalization | Approx. ₹ 43,518.12 Cr. |
| Sector / Industry | Finance Lending Sector |
| Official Website | irfc.co.in |
IRFC Share Price Target 2023
Indian Railway Finance Corporation Limited ( IRFC ) Indian Railways under Ministry of Railways ( MOR), Government of India. The company's main business is to borrow money from financial markets to finance the acquisition / creation of assets.
According to long term, the company looks good. However, being a PSU, whether this stock will be able to give good returns to its investors is a bit doubtful. Along with this, the management will also have to consider increasing its profitability so that the company can be given good growth.
These properties can then be leased to Indian Railways.
In this way the company's business appears quite strong. Also, the chances of default in this are minimal because the government is a debtor in it.
The company's financiers are looking good, with IRFC continuously increasing its profit.
Also, in the coming times, the railways will need more assets which can definitely benefit IRFC. The first target for IRFC Share Price Target 2023 will remain ₹37 while ₹41 can be obtained as the second target.
IRFC Share Price Target 2024
IRFC, the financial arm of IR, operates under the Ministry of Railways ( MoR). Therefore, IRFC receives substantial business and financial support from the Government of India. ~ 86.4% holding is also present in IRFC by the Government of India.
The company also plans to diversify its business profile by lending other entities in addition to Indian Railways.
However, it will be a small part of the total portfolio and in which priority will be given to the railways only.
If the management of IRFC increases the sources of its revenue, the dependence of the company will be slightly less than the railways.
The first target for IRFC Share Price Target 2024 can remain ₹44. Whereas a second target of ₹48 can be seen after obtaining the first target.
IRFC Share Price Target 2025
Ministry of Railways (MoR) and its entities are the only customers of the company. In the coming times, the company may try to increase its client base. It is the Government of India that appoints the Board of Directors of the Company and sets the strategic direction of the Company. Involved substantially in lending and operational and financial performance goals.
All financial risks such as interest rate risk and exchange rate variation risk are all passed on to the MoR. The first target for IRFC Share Price Target 2025 can be ₹51 whereas after achieving the first target, the target of ₹54 can be achieved.
IRFC Share Price Target 2026
IRFC which till now provided finance only to meet the Frontline requirements of Indian Railways. But now this company is also insisting on providing a huge amount of finance for the backward infrastructure project development of Indian Railways.
According to the management of the company, in the coming times, IRFC may be the frontline of Indian Railways or Backward infrastructure providing finance in every small and big project. But due to the monopoly of the government, how much exemption does IRFC get, Only time will tell. Given its semi-sovereign status, IRFC has been able to raise funds from domestic and international markets at competitive rates.
It also has the approval of the Government of India under section 54 EC to issue low cost capital gains bonds, thereby keeping the cost to the company minimum. Accordingly, the first price prediction for IRFC Share Price Target 2026 will be ₹57 while the second target can be ₹61.
IRFC Share Price Target 2030
According to long term, the company looks good. However, being a PSU, whether this stock will be able to give good returns to its investors is a bit doubtful. Along with this, the management will also have to consider increasing its profitability so that the company can be given good growth.
Indian Railways is slowly being privatized by the Government of India. The purpose of this privatization is to provide better facilities to the railway passengers.
For this, the Government of India will need to improve all the basic facilities of the Indian Railways. Means railways will require huge investment. Its direct benefit will be to IRFC.
For IRFC Share Price Target 2030, the company's first target can be ₹100 while the second target can be ₹108. IRFC Company's Business Model Company is a dedicated Market Borrowing Branch of Indian Railways.
Company's primary business is rolling stock by Indian Railways. To finance the acquisition of assets. This includes both powered and unpowered vehicles.
For example locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trolleys of all types. The company finances the purchase of assets to the Railways or makes the assets available on lease.
Services:
- Leasing
- Lending
- Borrowing
Company's Strengths
Financials Strengths:
- Company's sales grew at a CAGR of 22.17% in the last 3 years.
- The company has shown an impressive profit growth of 39.26% in the last 3 years.
- High Liquidity.
- There is a high promoters shareholding of 86.36%. High Dividend Yield.
Other Strengths: Owned and supported by the Government of India. Excellent asset quality.
Company's Weaknesses
Financial Weaknesses:
- The interest coverage ratio of the company is low.
- The company has a low return on equity of 13.8% in the last 3 years.
- The company can capitalize the interest cost.
Other Weaknesses and Threats: Limited customers. Risk of change in regulation.
| Shareholding Pattern: | |
|---|---|
| Promoters | 86.36% |
| Public | 9.19% |
| FII | 1.05% |
| DII | 3.39% |
| Others | 0% |
Competitors of IRFC Ltd
- Power Fin.Corpn.
- REC Ltd
- IFCI
- Tour. Fin. Corp.
- Guj. State Fin.
| IRFC Share Target Price For Long Term | |
|---|---|
| First Target(2023) | ₹37 |
| Second Target | ₹41 |
| First Target(2024) | ₹44 |
| Second Target | ₹48 |
| First Target(2025) | ₹51 |
| Second Target | ₹54 |
| First Target(2026) | ₹57 |
| Second Target | ₹61 |
| First Target(2030) | ₹100 |
| Second Target | ₹108 |
Conclusion:
Indian Railways will grow at a faster pace in the coming times. In which Indian Railways will need more resources. They will need IRFC to get these assets. This will definitely increase the revenue of IRFC. But if an investor invests in a company for a long period, then he should also recognize the risks associated with the company very well.
IRFC's limited client base is its biggest threat. But the company is definitely going to give good dividends to its investors.
So friends, today we have discussed IRFC Share Price Target 2023, 2024, 2025, 2026 and 2030. Friends, if you liked this information, please share it with your companions on social media networks. Your valuable suggestions are invited in the below comment box.
Disclaimer: No investment advice has been given in this post, these posts have been written for educational purpose. We are not SEBI Registered Advisor. Please do your own research or seek the advice of your financial advisor before making any investment.
FAQ,
1. What does IRFC company do?
- IRFC funds Indian Railways. That means big infrastructure works like railways require huge funding which is financed by IRFC.
2. Who is the owner of IRFC?
- The company works under the Government of India.
3. How is IRFC stock going to be in future?
- The company is a company with strong fundamentals. Which can be expected to do well in future.
4. Who is the chairman of IRFC?
- Shri Amitabh Banerjee is the present Chairman of the company.