We have another share price prediction which is IRFC Share or you can say its full name Indian Railway Finance Corporation Limited.
Now let us know brief information about this company. Let us tell you that this company is a subsidiary of Indian Railways which raises financial resources for expansion and operation through capital and other borrowings.
In this article, we are going to do a detailed analysis about this company and also provide complete information about its price target forecast from 2023 to 2050.
In todayโs article, we will analyze both fundamental analysis and technical analysis of this company and try to know whether it is right to invest in this stock or not?
Can we hold this stock for long term or not? How far can IRFC share price go in the coming future?
So friends, please read this post carefully, you will gain your knowledge from this post, I promise.
About Indian Railway Finance Corporation
First of all, let me tell you that the Company was established on 12 December 1986, whose main objective was to raise funds for Indian Railways and also to do finance work when needed.ย Thus,ย they functions under the full ownership of the Government of India.
Its main functions include acquisition of rolling stock assets, leasing of railway infrastructure assets such as wagons, trucks, electric multiple units, locomotives, coaches etc. and lending to entities under the Ministry of Railways.
Now you must be wondering for how many days these companies do the borrowing work.ย It is a finance company or NBFC company.
This company was listed in the stock market in the month of January 2021. There was no significant change in it in the first few days and for about 20 months from the time of its inception, it was hovering around its fixed value.
But it is not that this stock does not have a future in the stock market. Let us tell you that you can call this company the multibagger stock of the future.
In this post we are going to discuss these important aspects of this stock and also know whether it is beneficial to invest in this company or not.
So friends, let me tell you that this company works for financing the purchase of rolling stock assets for a lease period of at least 30 years which follows a financial leasing model.
IRFC Business Model
The primary business of this company is related to the finance sector and provides finance to Indian Railways to purchase their assets and in return earns interest on it.
Its work in this area is to finance the acquisition of rolling stock assets. This sector includes both powered vehicles and unpowered vehicles such as: locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trolleys of all types.
The main services are:
- Leasing
- Lending and
- Borrowing
This means that this company first takes loan from someone else and gives the loan to Railways at double the interest.
And after deducting his profit, he repays the loan to the company from which he had taken the loan. Thus it acts only as an intermediary.
Company Profile
Let us tell you that the main business of this company is to borrow money from the financial markets for the acquisition of assets or for the construction and financing of assets to be leased to Indian Railways.ย And for all this borrows money from the commercial financial markets.
Let me also tell you that till now its cumulative funding for the railway sector has crossed Rs 5.04 lakh crore till March 31, 2022.
This fund was used to acquire rolling stock assets and build its infrastructure.
You should also know that till now they have acquired 13349 locomotives, 73979 passenger coaches, 259661 wagons, which is approximately 75% of the total rolling stock fleet and all these are of great importance for the Railways.
This company does not work only and only for Indian Railways, this company also works with big railway companies like Rail Vikas Nigam Limited (RVNL), RailTel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc. Does it. Works to give loans to various institutions.
Market Competitors
The companyโs market competitors are:
- PFC (Power Finance Corporation)
- REC LIMITED (Formerly Rural Electrification Corporation)
- IFCI (Industrial Finance Corporation of India)
- Tourism Finance Corporation Of India Ltd.
- Gujarat State Finance Corporation Ltd.
Competitive Strengths
There are may strengths are as following below:
- Strategic role in Indian Railways growth.
- CRISIL Ratings is AAA/A1+.
- ICRA Rating is AAA/A1+.
- Competitive cost that is of borrowing.
- Strong financial performance.
- Sound asset-liability management.
- Experienced management team.
Some Important Points
IRFC Performance Smart Board:
- 96th ranked in Fortune India ranking out of 500
- Total NPA is 0
- Funded INR 2,22,302/- Crores in Project Assests
- Funded for 73,979 Passenger Coaches
- Funded for 2,59,661 Freight Wagons
- Total profit growth for FY 2021-22 is 37.91%
The best thing about this stock is that this stock has shown good growth in its assets in the last 3 years.
For example, if we look at the growth of the company, the total assets of the company were Rs 1,20,000 crore in March 2017 and in March 2020, this asset has increased to Rs 2,66,000 crore at an annual CAGR of 22%.
Recently it has paid interim dividend to its shareholders on 17 November 2022 at the rate of 0.80% per share.
Even before this, the company had declared a final dividend of 0.63% on 15 September 2022. The company had paid interim dividend at the rate of 0.77% on 10 November 2021 and the first interim dividend on 17 February 2021, which is 1.05%.
Fundamental and Technical Analysis
- The total market capitalization is 414.92 Billion INR
- Face value is ย โน 10.0.
- P/E Ratio is 4.49%.
- Total TTM EPS is 4.94.
- Total TTM PE is 6.44.
- Total Book Value per share is 31.37.
IRFC Share Price Target 2023
After deep researching on this share, the deep analysis of fundamental and technical analysis result is saying that in the upcoming future is really bright and this share can make the history on multibagger stock.
In the upcoming year 2023, the price target will be approx between Rs 55 to Rs 75. So guys be with this share and this share not only gives you the incremental rupees but also gives you very interesting dividend also.ย
IRFC Share Price Target 2024
This share can be the next multibagger stock. So guys, Its my suggestion is to be with this share and buy this share and hold this share as long as you can because you can be the next millionaire in next upcoming days with the help of this multibagger share.
The share price target will be approx Rs 85 to Rs 110 in the upcoming year end of 2024.
IRFC Share Price Target 2025
As you all know that railway is progressing its work very vigorously. In such a situation, if they needs any kind of loan amount, then railway tries to take loan amount only from IRFC and tells that how much money they needs.
And you already know even if it borrows from any company in the form of loan to provide loan, then it will provide loan only by keeping a middle commission for giving that loan.
The share price may reach approx Rs 115 as its first target and it can go up to Rs 135 as its second target.
IRFC Share Price Target 2030
The commission of this company does its business, and always keeps in profit. This day price will also increase and it will go up in the range between Rs 290 to Rs 320 by the end of 2030.
IRFC Share Price Target 2040
You must be aware that gradually all the government properties are being privatized. In such a situation, Railways is also being privatized by the government and due to this privatization, the government plans to provide better facilities to the railway passengers.
And for all these the Government of India will have to improve all the basic condition and this work is not that easy. For all this, the Government of India will need to invest on a large scale.
And yes, but when it comes to investment and funding of railways, then the name of starts coming from there because they handles all the work of funding of railways.
So friends, if seen, by 2040, you can see a lot of growth in its business model, profits, sales, and there are full possibilities to move forward and the price target can be from around Rs 415 to Rs 465.
IRFC Share Price Target 2050
If you have paid some attention to the business of Indian Railways, then you must have seen in the last few years that railway is constantly expanding itself, especially on infrastructure.
And in this expansion you can give the most importance to the NBFC company, because they does the entire funding arrangement.
You can see big projects in the coming time and it will require huge investment and all these funding will be arranged by the company only and In the coming year 2050, you can see the price of this NBFC company will be more than Rs. 600 approximately.
