Indian Railway Finance Corporation Ltd (IRFC) is a public sector undertaking that plays a crucial role in financing the expansion and modernization of the Indian Railways. As an integral part of the Indian Railways ecosystem, IRFC raises funds through various financial instruments to support the development of railway infrastructure in the country.
Current IRFC Share Price and 52-Week High:
The current 52 week high is at 134.75.
The share price of Indian Railway Finance Corporation Ltd (IRFC) is a significant factor for investors and stakeholders who are keen to monitor the companyโs performance in the stock market. The share price reflects the marketโs perception of the companyโs financial health, growth prospects, and overall market sentiment.
IRFC share price prediction
Business And Area of the company
The company is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement .
IRFC Finance Highlight
In the last six months, the PSU stock has surged 295 percent and a whopping 400 percent in two years.
The government has declared a fresh investment of around Rs 7 lakh crore for the development of rail infrastructure, which is expected to benefit PSUs such as IRFC
| PARTICULARS | Q4 FY23 (โน cr) | Q4 FY22 (โน cr) | Change % YoY | FY23 (โน cr) | FY22 (โน cr) | Change % YoY |
| Revenue from Operations | 6,236 | 5,931 | ย ย ย ย 5.1% | 23,891 | 20,298 | ย ย 17.7% |
| Net Profit | 1,328 | 1,492 | ย ย ย ย ย 11% | 6,337 | 6,090 | ย ย 4.1% |
| Net Interest Margin | 1.42% (FY23) | |||||
| CRAR | 512.02% (FY23) | |||||
Updates
- The companyโs basic funding requirements are met through government budgetary policies.
- It raises funds at lowest possible cost amongst the term lending institutions in India. This directly benefits the IR (Indian Railway) in terms of saving the finance cost.
- Finance lease of rolling stock for NTPC under general purpose wagon investment scheme (GPWIS) of MoR had been approved from the board. The disbursement amount for this would be ~โน500 crore.
Technical Highlight
โข Weighted average tenure for their assets stands at ~8-9 years.
โข AUM breakup in FY23 consisted of lease receivables, advances against railway infrastructure assets to be leased (including national projects), lease receivables asset and loan to RVNL (Rail Vikas Nigam Limited) & IRCON which stood at 13.42%, 46.44%,38.87% and 1.27%, respectively.
โข Operating expenses stood at ~โน27.6 crore during the year. The same a percentage of total turnover stood at 0.12%.
โข IRFCโs financial performance is a critical aspect of its attractiveness to investors. Analyze key financial indicators such as revenue growth, profit margins, and debt levels to gain a comprehensive understanding of the companyโs stability and potential for future growth.
Conclusion
Indian Railway Finance Corporation Ltd continues to be a key player in Indiaโs financial landscape. Whether youโre a current investor or considering entering the market, staying abreast of the latest news and financial indicators is crucial for making informed decisions. Always remember to conduct thorough research and, if needed, consult with financial professionals before making investment choices.
Remember, the stock market is inherently volatile, and every investment carries risk. Make informed decisions based on your own research and financial situation.
Disclaimer:ย This article is for informational purposes only and should not be construed as financial advice. Please consult a qualified financial advisor before making any investment decisions.
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