IRFC Share Price Target 2025

The Indian Railway Finance Corporation (IRFC) has been an important resource for investors interested in India’s infrastructure growth story. As the financial arm of Indian Railways, IRFC has been vital to the modernization and extension of one of the world’s largest rail networks. Given the government’s emphasis on infrastructure development, IRFC is not just a public sector-backed corporation, but also a consistent source of prospective growth for investors. In this analysis, Future Stock Value will examine IRFC’s business model, recent performance, growth drivers, potential difficulties, and IRFC Share Price Target 2025.

Indian Railway Finance Corp Ltd : Overview

The Backbone of Indian Railways Financing. Established in 1986, the IRFC’s principal function is to collect finances for Indian Railways, allowing it to grow, modernize, and enhance its operations. The IRFC finances the acquisition of assets like as locomotives, wagons, coaches, and other infrastructure requirements. By procuring capital at low rates and leasing these assets to Indian Railways, IRFC helps the railway sector to grow consistently and sustainably.

IRFC’s business model is unique within the public sector. Its revenue comes from the leasing agreements with Indian Railways, providing a steady income stream with minimal market risks. Given its structured revenue and government backing, IRFC is seen as a resilient investment in the infrastructure sector.

IRFC Stock Performance and Historical Trends

Since its first public offering in January 2021, the IRFC stock has fluctuated between stability and growth. While the initial reaction to the IPO was subdued, the company gained pace as investors saw its potential as a long-term infrastructure asset. The stock experienced growth in 2023, suggesting greater investor confidence in public-sector infrastructure companies.

Historical Price Range

  • 2021-2022: The share price remained rather constant, with minor changes due to broader market sentiment.
  • 2023: A modest upswing with some volatility, as government infrastructure projects and investor trust in public sector firms boosted the attraction of the IRFC.

For 2024, the stock has continued to reflect the general optimism around India’s railway development plans, making IRFC an enticing alternative for those seeking long-term, government-backed infrastructure investments. On this basic we will explain IRFC Share Price Target 2025.

IRFC Share Price Target 2025
IRFC Share Price Target 2025

IRFC Company Essentials

  • Market Cap : ₹ 2,06,221.02 Cr.
  • Advances : ₹ 0.0 Cr.
  • No. of Shares : 1,306.85 Cr.
  • P/E : 31.98
  • P/B : 4.06
  • Face Value : ₹ 10
  • Div. Yiel : 0.95 %
  • Book Value (TTM) : ₹ 38.85
  • Operating Revenue : ₹ 26,644.58 Cr.
  • Net Profit : ₹ 6,412.55 Cr.
  • Promoter Holding : 86.36 %
  • EPS (TTM) : ₹ 4.93
  • Sales Growth : 12.32 %
  • ROE : 13.66 %
  • ROCE : 5.73 %
  • Profit Growth : 3.97 %

IRFC Share Price Target 2025

PeriodMinimum TargetMaximum Target
2024 November145160
2024 December150180
2025 January175200
2025 February190230
2025 March170195
2025 April215245
2025 May230270
2025 June260295
2025 July285305
2025 August300340
2025 September280325
2025 October315370
2025 November355395
2025 December380460
For further details, click here. https://irfc.co.in/
IRFC Share Price Target 2025 ( Its Under Valued)
IRFC Share Price Target 2025 ( Its Under Valued)

Peer Comparison

COMPANYPRICERs.MCAPCr.P/BP/EEPSRs.ROE%ROCE%P/SEV/EBITDA
Indian Railway Finance157.802,06,142.614.0631.974.9313.665.737.7414.57
Power Finance Corp459.801,51,771.681.8310.0745.6919.499.963.3011.77
REC526.951,38,757.741.929.4255.9522.3710.022.946.34
IFCI5915,396.6714.44109.210.5427.2816.1318.3314.53
MAS Financial Serv291.705,293.002.2019.0715.2915.1311.824.3510.16
Satin Creditcare165.151,828.290.664.1639.7918.5816.240.895.25

Quarterly Result

PARTICULARSJun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Operating Revenue 6,673.886,766.326,741.896,473.566,765.63
Other Income 1.861.163.424.430.39
Interest Expended 5,090.975,181.495,104.294,724.725,154.91
Operating Expenses 29.2633.9735.4634.2232.69
Total Provisions 00000
Depreciation 4.232.151.331.731.59
Profit Before Tax 1,551.281,549.871,604.231,717.321,576.83
Tax 00000
Net Profit 1,551.281,549.871,604.231,717.321,576.83
Adjusted EPS (RS)1.191.191.231.311.21
Note : All Figures in Cr.

Profit & Loss

PARTICULARSMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Operating Income 13,421.0215,770.4720,299.2623,721.4226,644.58
Other Income 0.070.392.3344.2615.26
Interest 10,162.7011,237.0514,074.7817,447.2120,101.47
Operating Expenses 13.3620.3336.1739.5932.19
Total Provisions 52.9397.35100.49111.73114.08
Exceptional Items 00000
Profit Before Tax 3,192.104,416.136,090.166,167.166,412.10
Tax 000.3200
Profit After Tax 3,192.064,416.136,090.406,167.766,412.55
Adjusted EPS (Rs.) 2.693.384.664.724.91
NOTE : All Figures in Cr. Adjusted EPS in Rs.

Balance Sheet

ParticularsMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity and Liabilities
Share Capital 11,880.4613,068.5113,068.5113,068.5113,068.51
Total Reserves 18,419.2922,844.8827,927.8331,611.6836,110.06
Borrowings 2,30,513.313,20,213.653,88,416.624,18,929.264,12,032.10
Other N/C liabilities 9.688.6911.7612.6333.17
Current liabilities 17,229.1324,994.5620,567.9726,736.6823,838.59
Total Liabilities 2,78,051.873,81,130.284,49,992.694,90,358.754,85,082.43
Assets
Loans 00000
Net Block 11.0545.3637.9619.1922.05
Capital WIP 00000
Intangible WIP 00003.78
Investments 11.5111.981013.6653.60
Other Loans2.8419.1319.0946.6256.45
Other N/C Assets 1,803.40625.841,306.046,880.715,702.45
Current Assets 2,76,223.083,80,427.984,48,619.594,83,398.574,79,244.11
Total Assets 2,78,051.873,81,130.284,49,992.694,90,358.754,85,082.43

Corporate Actions ( Dividend)

EX DATERECORD DATEDIVIDEND%AmountRs.TYPE
12 Nov 202412 Nov 202400Interim
22 Aug 202422 Aug 202470.7Final
10 Nov 202310 Nov 202380.8Interim
15 Sep 202315 Sep 202370.7Final
17 Nov 202218 Nov 202280.8Interim

“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”

Key Growth Drivers for IRFC

  • Government’s Focus on Railway Infrastructure : The Indian government has provided significant funding for railway renovation and growth. Budget allocations have steadily increased, indicating the effort to improve railway connection, safety, and efficiency. its good benefits for IRFC Share Price Target 2025.
  • Demand for Modern, Green Rail Infrastructure : The government’s goal of achieving a carbon-neutral railway network by 2030 is a significant element. IRFC contributes significantly to this shift by financing energy-efficient projects including electric trains. As the railway’s sustainability programs expand, the corporation may profit even more from green bond funding. So this reason IRFC Share Price Target 2025 can achieve easily.
  • Push for High-Speed Rail : Projects such as the Mumbai-Ahmedabad High-Speed Rail Corridor and other dedicated freight routes may open up new funding alternatives for IRFC, thereby increasing its revenue and profitability. This project help to achieve IRFC Share Price Target 2025
  • Stable, Government-Backed Business Model : As IRFC’s principal client, Indian Railways provides a stable and constant source of income, making IRFC a low-risk investment in comparison to other companies in the field. BJP Government bust for infrastructure so railway sector developing and its help to achieve IRFC Share Price Target 2025.

Challenges and Risks for IRFC

  • Interest Rate Fluctuations : Rising interest rates could increase IRFC’s borrowing expenses, reducing profitability. Its main cons for IRFC Share Price Target 2025, While the company receives government assistance, the overall interest rate environment remains a consideration that could affect operational costs.
  • Dependence on Indian Railways : With Indian Railways being its only client, IRFC’s revenue is highly dependent on the railway’s budget allocations and financial health. Any budget cutbacks or shifts in funding priorities could impact IRFC’s growth.
  • Market Sentiment on Public Sector Companies : Public sector stocks, while steady, can experience difficulties in attracting private investment due to worries about operational efficiency and government meddling. Todays scenario investor believing on safe stock investment dur to IRFC Share Price Target 2025 will be help to achieve it.
  • Global Economic Factors : Inflation, geopolitical tensions, and a worldwide economic slowdown could all have an indirect impact on the IRFC’s funding environment, raising capital costs or causing fluctuations in access to global loan markets.

IRFC Share Price Target 2025: Predictions and Scenarios

Analysts predict IRFC’s stock performance to improve as the railway sector in India continues to grow and IRFC plays a key role in financing it. Here, we provide several scenarios based on various growth and risk considerations.

Optimistic Scenario

In this scenario, IRFC benefits from ongoing high-level investments in railway infrastructure, particularly green projects and high-speed rail. Analysts predict that the share price will reach around INR 450-500 by 2025 if revenue growth remains consistent and costs are controlled. This assumes a compound annual growth rate (CAGR) of 12-15%, fueled by continued investments and government support.

Conservative Scenario

In this instance, economic growth is mild, with interest rate pressures and minor budget cuts hurting the IRFC’s finances. With moderate increase, IRFC’s share price might reach INR 450-500 by 2025, IRFC Share Price Target 2025″ representing a consistent CAGR of 8-10%.

Bearish Scenario

If IRFC experiences substantial obstacles such as sharp interest rate hikes, significant reductions in railway budgets, or a drop in investor interest in public sector stocks, the share price may remain close its current levels of INR 153-155.

Is IRFC a Good Long-Term Investment?

Investors considering IRFC for long-term holdings should balance stability and growth prospects with potential risks. For individuals looking for reliable, low-risk investments, IRFC offers exposure to the Indian infrastructure industry with relatively low volatility thanks to government support. Furthermore, IRFC Share Price Target 2025 will be achieve, the company’s stable revenue model makes it an appealing option for conservative investors looking for long-term development in a fast evolving industry.

Pros :

  • Government funding ensures a stable revenue stream.
  • Essential part in India’s railway upgrading.
  • Potential for capital appreciation with maintained infrastructure expansion.

Cons :

  • Limited different perspectives based on a single client, Indian Railways
  • Sensitivity to interest rate changes.
  • Sensitive to changes in public sector investment state of mind.

Conclusion

The “IRFC Share Price Target 2025” highlights the stock’s potential to gain from India’s investment in infrastructure and sustainable development. With a strong business model, consistent government support, and a critical role in the rail industry, IRFC remains an attractive investment opportunity. While obstacles persist, particularly in terms of interest rates and reliance on government support, the IRFC’s long-term potential remains high.

For investors looking at future growth in Indian infrastructure, IRFC offers an appealing investment avenue. Stay tuned to FutureStockValue.com for updated insights and projections on IRFC and other key infrastructure stocks.

What is the price target for IRFC in 2040?

YearsTargets (Rs)
IRFC Share Price Target 2030720 to 890
IRFC Share Price Target 20351355 to 1780
IRFC Share Price Target 20402260 to 2840
IRFC Share Price Target 20453400 to 420000

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