IRFC Share Price Target 2025?
What is the Share Price Target of IRFC in 2025?
According to current market analysis, the price target for IRFC’s stock by 2025 is expected to be around Rs. 130-150 per share.
Indian Railway Finance Corporation (IRFC) is vital in supporting India’s vast railway network. Established in 1986, IRFC has become an important entity in the country’s financial landscape, facilitating the growth and development of Indian Railways.
IRFC is a dedicated financial institution wholly owned by the Government of India. Its primary mission is to raise funds for the Indian Railways and its subsidiaries. IRFC does this by issuing various financial instruments and bonds, attracting investors, and injecting capital into the development of the rail sector.
IRFC was listed on BSE (BOM: 543257) in the year 2021 and has performed well since its listing. Although it has not been listed for much time now, there has been a lot of good movement in it for some time now, mainly the effect of government policy. The big giants of the stock market believe that this movement can be seen for the next 5 years.
Indian Railway Finance Corp Ltd is an Indian company listed on NSE: IRFC under Nifty 200 and holds great growth potential. In this post, we will find IRFC share price target for tomorrow Fri 05 January 2024 using multiple indicators, Artificial intelligence (A.I) and by comparing its technical data.
The government currently holds an 86 % stake IRFC. To make the central public sector enterprise compliant to SEBI’s minimum public shareholding (MPS) norm, the government has to dilute 11 % stake in IRFC. Government announced it was planning to sell over 11 per cent stake in the state-owned company via an offer for sale (OFS) in coming Years.
Official Website of IRFC: Click HereÂ
IRFC Share Price Target 2025 (December-2023 To 2030)
Price Year | First Target | Second Target |
2023 | 96.67 | 98.16 |
2024 | 105.85 | 110.15 |
2025 | 125.09 | 130.30 |
2026 | 135.00 | 145.00 |
2027 | 154.07 | 159.35 |
2028 | 166.67 | 170.10 |
2029 | 178.10 | 180.70 |
2030 | 190.00 | 195.00 |
IRFC share price target 2025: BUY Indian Railways PSU stock after multibagger return of 200% in 2023
- Company has delivered good profit growth of 25.3% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 30.7%
IRFC Share Price Target 2025, IRFC Dividend History: Indian Railway Finance Corporation or IRFC shares are among the most talked about stocks of the Dalal Street 2023. In fact, IRFC is one PSU stocks that has more than doubled investors’ money in 2023 and also paid handsome dividend to investors. IRFC dividend yield is more than 1.50 per cent.
Understanding IRFC: IRFC Share Price Target 2025
The Indian Railway Finance Corporation (IRFC) holds a unique position in the financial landscape of India. As the dedicated financing arm of the Indian Railways, its primary function is to raise financial resources for the development and expansion of the railway network. IRFC operates in the capital market, mobilizing funds through various financial instruments, including bonds.
Factors Influencing IRFC’s Share Price:
Railway Infrastructure Development: The performance of IRFC is intricately tied to the growth and development of the railway infrastructure in India. As the government continues to invest in modernizing and expanding the railway network, IRFC stands to benefit from increased funding requirements, potentially reflecting positively on its share price.
Interest Rates and Bond Yields: IRFC relies heavily on the issuance of bonds to raise funds. Therefore, fluctuations in interest rates and bond yields can significantly impact its cost of borrowing and, consequently, its profitability. Monitoring these macroeconomic factors is crucial for predicting IRFC’s financial performance and, by extension, its share price movements.
Government Policies and Budget Allocations: Government policies, especially those related to infrastructure development and budgetary allocations, play a pivotal role in shaping IRFC’s prospects. Increased allocations to the railway sector signal a positive outlook for IRFC, potentially attracting investors and driving up its share price.
Operational Efficiency: The efficiency with which IRFC manages its operations, including the timely execution of projects and effective financial management, directly influences investor confidence. Positive operational indicators can contribute to a favorable perception of the company, potentially supporting a higher share price.
Market Sentiment and Investor Perception: The stock market is, to a large extent, driven by sentiment and perception. Positive news, strategic initiatives, and a favorable economic environment can attract investors, influencing the demand for IRFC shares and, consequently, its share price.
IRFC Price Information as per NSE & BSE
Price Information | |
52 Week High (20-Dec-2023) | 104.1 |
52 Week Low (28-Mar-2023) | 25.4 |
Upper Band | 121.55 |
Lower Band | 81.05 |
Price Band | 20 |
IRFC Trade Information as PER NSE & BSE
Trade Information | |
Traded Volume (Shares) | 4,35,42,157 |
Traded Value (₹ Lakhs) | 44,029.83 |
Total Market Cap (₹ Lakhs) | 1,31,79,588.30 |
Free Float Market Cap (₹ Lakhs) | 18,45,142.36 |
Impact cost | 0.14 |
Daily Volatility | 2.92 |
Annualised Volatility | 55.79 |
Profit & Loss Report: IRFC Share Price Target 2025
Narration | Mar-22 | Mar-23 |
Sales | 20299.38 | 23891.95 |
Expenses | 122.64 | 134.32 |
Operating Profit | 20176.74 | 23757.63 |
Other Income | 2.22 | 40.66 |
Depreciation | 14.03 | 14.06 |
Interest | 14074.78 | 17447.21 |
Profit before tax | 6090.15 | 6337.02 |
Tax | 0.32 | – |
Net profit | 6089.84 | 6337.01 |
EPS | 4.66 | 4.85 |
Price to earning | 4.60 | 5.49 |
Price | 21.45 | 26.60 |
RATIOS: | ||
Dividend Payout | 30.04% | 30.93% |
OPM | 99.40% | 99.44% |
Quarterly Result : IRFC Share Price Target 2025
Narration | Jun-23 | Sep-23 |
Sales | Â Â Â Â Â Â Â Â Â Â Â 6,679.17 | Â Â Â Â Â Â Â Â Â Â Â 6,766.63 |
Expenses | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 29.26 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 33.97 |
Operating Profit | Â Â Â Â Â Â Â Â Â Â Â 6,649.91 | Â Â Â Â Â Â Â Â Â Â Â 6,732.66 |
Other Income | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.86 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.85 |
Depreciation | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4.23 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2.15 |
Interest | Â Â Â Â Â Â Â Â Â Â Â 5,090.97 | Â Â Â Â Â Â Â Â Â Â Â 5,181.49 |
Profit before tax | Â Â Â Â Â Â Â Â Â Â Â 1,556.57 | Â Â Â Â Â Â Â Â Â Â Â 1,549.87 |
Tax | – | – |
Net profit | Â Â Â Â Â Â Â Â Â Â Â 1,556.57 | Â Â Â Â Â Â Â Â Â Â Â 1,549.87 |
OPM | 100% | 99% |
IRFC Best And Worst Result Report
Trends | Sales Growth | OPM | Price To Earning |
10 Years | 16.18% | 99.48% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.66 |
07 Years | 17.99% | 99.47% | Â Â Â Â Â Â Â Â Â Â 9.66 |
05 Years | 20.85% | 99.43% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.66 |
03 Years | 21.20% | 99.38% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.66 |
Recent | 17.70% | 99.46% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21.77 |
Best | 21.20% | 99.46% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21.77 |
Worst | 16.18% | 99.38% | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.66 |
About Indian Railway Finance Corporation (IRFC)
BACKGROUND
Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.
IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India. It is also registered as Systemically Important Non–Deposit taking Non-Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with Reserve Bank of India (RBI).
In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.
PROFILE
The primary objective of IRFC is to meet the predominant portion of ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways.
IRFC’s cumulative funding to rail sector has crossed Rs.5.04 lakh crore as of 31st March, 2022. The funds are utilized for acquiring rolling stock assets and also building up infrastructure, constituting significant part of annual capital expenditure of Indian Railways. So far, it has funded acquisition of 13764 locomotives, 76735 passenger coaches, 265815 wagons, which constitute around 75% of the total rolling stock fleet of Indian Railways. From 2011-12 onwards, IRFC has forayed into funding of railway projects and capacity enhancement works.
IRFC has also been lending to various entities in Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.
IRFC’s constant endeavor has been to diversify its borrowing portfolio in terms of instruments, markets and investors which has led to the Company meeting the targeted borrowings year after year, through issue of both taxable and tax-free bonds, term loan from banks/financial institutions besides off shore borrowings, at competitive market rate.
VISION
To be the pivotal and premier Financial Services Company for the development of Rail Transport Sector while maintaining its symbiotic relationship with the Ministry of Railways.
MISSION
To make IRFC one of the leading Financial Service Companies in the country, for raising funds from the capital market at competitive cost for augmenting railway plan finances, duly ensuring that the Corporation makes optimum profits from its operations.
OBJECTIVES
In Achieving the Mission, The Objectives of the Corporation Are:
- To mobilize resources through market borrowings from domestic as well as Overseas Capital Markets at the most competitive rates & terms as per annual targets given by the Ministry of Railways.
- To explore use of innovative and diverse instruments for raising funds so as to reduce the cost of borrowings to the Company.
- To provide timely funding for acquisition of Rolling Stock assets for use by MOR.
- To leverage the Company’s business advantage, the large size and diverse activities of MOR is to efficiently provide customized professional services at competitive cost.
- To explore the possibility of financing CPSEs and other entities for creation of rail infrastructure so as to sustain future growth and profitability.
- To make judicious use of derivatives and other emerging products for risk mitigation at appropriate time and optimum cost.
- To strive for high quality service to the investors, lenders and other financial intermediaries and to action prompt redressed of their grievances/problems.
- To ensure optimum utilization of resources.
- To enhance professionalism amongst the employees of the Company through training and other human resource tools.
Official Website of IRFC: Click HereÂ
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