Indian Railway Finance Share Price Target for 2024, 2025, 2026, 2028, and 2030
In this post, we will discuss the Indian Railway Finance Share Price Target. If you are planning to invest your money in public sector enterprises, then before investing, you must understand the forecast value of these shares in the coming years.
This is what this post is about. The predicted stock price of Indian Railway Finance Corporation for the year is available here. Before we look at the expected stock price, you must first understand the financials and fundamentals of IRFC.
About Indian Railway Finance Corporation
The company was founded in December 1986. It is a fully owned subsidiary of the Indian Railways, Ministry of Railways, Government of India. The Indian Railway Finance Corporation (IRFC) was established to raise funds from domestic and international markets to meet the majority of the Indian Railways’ extrabudgetary resource requirements. It is Indian Railways’ dedicated funding arm.
IRFC is a Schedule “A”/Miniratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India.
Financials (Standalone)
Profit & Loss A/c
Balance Sheet
Ratios
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Revenue | 20,301.60 | 15,770.86 | 13,838.54 | 11,133.60 | 11,020.23 |
| Total Revenue Growth (%) | 28.73 | 13.96 | 24.30 | 1.03 | 21.80 |
| Total Expenses | 14,211.44 | 11,354.73 | 10,146.11 | 8,232.01 | 8,475.08 |
| Total Expenses Growth (%) | 25.16 | 11.91 | 23.25 | (2.87) | 22.57 |
| Profit after Tax (PAT) | 6,089.84 | 4,416.13 | 3,692.42 | 2,254.75 | 2,007.31 |
| PAT Growth (%) | 37.90 | 19.60 | 63.76 | 12.33 | 114.96 |
| Operating Profit Margin (%) | 99.33 | 99.25 | 99.52 | 99.56 | 99.66 |
| Net Profit Margin (%) | 30.00 | 28.00 | 26.68 | 20.25 | 18.21 |
| Basic EPS (₹) | 4.66 | 3.66 | 3.93 | 3.43 | 3.08 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Assets | 449,980.22 | 378,051.72 | 275,934.17 | 206,603.61 | 162,332.13 |
| Total Assets Growth (%) | 19.03 | 37.01 | 33.56 | 27.27 | 25.21 |
| Total Liabilities | 408,983.88 | 342,138.34 | 244,971.74 | 181,574.96 | 148,766.92 |
| Total Liabilities Growth (%) | 19.54 | 39.66 | 34.91 | 22.05 | 26.46 |
| Total Equity | 40,996.34 | 35,913.38 | 30,962.43 | 25,028.65 | 13,565.21 |
| Total Equity Growth (%) | 14.15 | 15.99 | 23.71 | 84.51 | 12.95 |
| Net Worth | 40,996.34 | 35,913.38 | 30,962.43 | 25,028.65 | 13,565.21 |
| Current Ratio (x) | 1.06 | 2.28 | 3.06 | 26.9 | 0.55 |
| Total Debt to Equity (x) | 9.47 | 9 | 7.57 | 6.95 | 8.83 |
| Contingent Liabilities | 0.42 | 0.42 | 0.43 | 0.43 | 1 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Return on Equity (%) | 14.85 | 12.29 | 11.92 | 9.00 | 14.79 |
| Return on Capital Employed (%) | 48.56 | 7.25 | 7.39 | 5.57 | 8.02 |
| Return on Assets (%) | 1.35 | 1.16 | 1.33 | 1.09 | 1.23 |
| Interest Coverage Ratio (x) | 1.43 | 1.39 | 1.37 | 1.35 | 1.30 |
| Asset Turnover Ratio (x) | 0.05 | 0.05 | 5.01 | 5.38 | 6.78 |
| Price to Earnings (x) | 4.60 | 6.79 | – | – | – |
| Price to Book (x) | 0.68 | 0.84 | – | – | – |
| EV/EBITDA (x) | 20.62 | 22.52 | – | – | – |
| EBITDA Margin (%) | 99.40 | 99.28 | 99.52 | 99.56 | 99.67 |
Important Note: These price targets of “Indian Railway Finance Corporation” are only for reference purpose only, short-term and long-term IRFC’s stock price predictions may be different due to the different analyzed time series. This prediction is only if there are positive market sentiments, and any uncertainties in the company or global market condition is not covered in this analysis.
Indian Railway Finance Corporation Share Price Target for 2023
If we talk about the financial performance of the company, revenue from operations has increased by ₹ 45,280.47 million from ₹ 1,57,702.21 million in 2020–21 to ₹ 2,02,982.68 million in 2021–22, showing a growth of 28.71%. The company’s profit before tax (PBT) for the fiscal year ended March 31st, 2022, was ₹ 60,901.55 million, up 37.91% from 44,161.31 million the previous year.
| Year | First Target | Second Target |
|---|---|---|
| 2023 | ₹ 40 | ₹ 50 |
Indian Railway Finance Corporation Share Price Target for 2024
During the year, the Indian Railway Finance Corporation (IRFC) constantly diversified its borrowing portfolio to meet the target of borrowings mandated by MoR at the most competitive rates and terms. IRFC, based on its performance vis-à-vis the targets set out in the MOU for the year 2020–21, was awarded an “Excellent” rating from the Department of Public Enterprises.
| Year | First Target | Second Target |
|---|---|---|
| 2024 | ₹ 55 | ₹ 65 |
Indian Railway Finance Corporation Share Price Target for 2025
With more than three decades of experience, IRFC has made a huge contribution to the development and growth of Indian Railways and railway entities, including Rail Vikas Nigam Limited (RVNL) and IRCON.
| Year | First Target | Second Target |
|---|---|---|
| 2025 | ₹ 75 | ₹ 85 |
Indian Railway Finance Corporation Share Price Target for 2026
Having a strong credit rating enables the company to borrow funds at a much lower cost. The Indian Railway Finance Corporation Limited raises funds through various sources at the lowest viable market rate. These sources of funds include the issuance of taxable and tax-exempt bonds, term loans from banks and financial institutions, commercial paper, external commercial borrowings, and asset securitization.
| Year | First Target | Second Target |
|---|---|---|
| 2026 | ₹ 90 | ₹ 100 |
Indian Railway Finance Corporation Share Price Target for 2027
The company’s robust business model and optimum funding mix enable it to maintain a healthy balance sheet and liquidity position. Furthermore, the company’s cost-plus strategic approach enables it to achieve year after year sustained income growth while maintaining profitability.
| Year | First Target | Second Target |
|---|---|---|
| 2027 | ₹ 110 | ₹ 120 |
Indian Railway Finance Corporation Share Price Target for 2028
The cash flows of the company are highly predictable, shielding it largely against liquidity-related issues even in a volatile market. Besides, with the quality of its credit, the company commands a high level of reputation amongst investors, both domestic and international. The Risk Management Committee and Asset Liability Management Committee (ALCO) actively monitor the liquidity risk. In the instance of the IRFC, the liquidity risk is regarded as being at a low level.
| Year | First Target | Second Target |
|---|---|---|
| 2028 | ₹ 130 | ₹ 145 |
Indian Railway Finance Corporation Share Price Target for 2030
The company’s main line of business is to use financial markets to obtain loans to finance the creation or acquisition of assets that would be leased to the Indian Railways. In its more than 35 years of existence, IRFC has played a vital role in assisting the growth of the Indian Railways and affiliated organizations by financing a sizable amount of its yearly plan outlay. This is anticipated to continue in the years to come.
| Year | First Target | Second Target |
|---|---|---|
| 2030 | ₹ 175 | ₹ 200 |
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IRFC share price targets for 2023, 2024, 2025, 2026, 2028, and 2030 are shown in the table below.
| Year | First Target | Second Target |
|---|---|---|
| 2023 | ₹ 40 | ₹ 50 |
| 2024 | ₹ 55 | ₹ 65 |
| 2025 | ₹ 75 | ₹ 85 |
| 2026 | ₹ 90 | ₹ 100 |
| 2027 | ₹ 110 | ₹ 120 |
| 2028 | ₹ 130 | ₹ 145 |
| 2030 | ₹ 175 | ₹ 200 |
Recommendations: Invest in IRFC stock or sell it?
As per analysis, IRFC’s stock shows positive trends, but this is not so high that you make a lot of money. You can avoid this stock and invest your hard-earned money somewhere else.
FAQ’s
What is the PE ratio of Indian Railway Finance Corporation?
The current PE ratio (price-earnings ratio) of Indian Railway Finance Corporation is 5.73.
What is the 52-week high and low of Indian Railway Finance Corporation’s share price?
Indian Railway Finance Corporation share price saw a 52-week high of ₹ 37.10 and a 52-week low of ₹ 19.30.
What will Indian Railway Finance Corporation’s share price target be for 2024?
The first target of Indian Railway Finance Corporation's share price can be at or below ₹ 55 and the second one is at or below ₹ 65 in 2024.
What will be the Indian Railway Finance Corporation share price target in the next 5 years?
The first target for Indian Railway Finance Corporation's share price in the next five years is ₹ 130, and the second target is ₹ 145.
What will be the Indian Railway Finance Corporation share price target in the next 7 years?
In the next 7 years, the first target for Indian Railway Finance Corporation's share price can be ₹ 175, and the second is ₹ 200.
Is it profitable to invest in Indian Railway Finance Corporation stock?
As per analysis, IRFC’s stock shows positive trends, but this is not so high that you make a lot of money. You can avoid this stock and invest your hard-earned money somewhere else.
What are the key metrics to analyze Indian Railway Finance Corporation’s share price?
Indian Railway Finance Corporation's share price can be quickly analyzed on the basis of the following parameters:
- Stock's PE: 5.73
- Dividend Yield: 4.91%
- Price to Book Ratio: 0.91
- EPS: ₹ 4.98
Note: For detailed ratios, refer to the financials section.
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