Indian Railway Finance Corporation Share Price Target 2025 Price Target, Financial Performance & Expert Recommendations are explained below and benefit from it.
Company – IRFC (Indian Railway Finance Corporation)
It is a financial institution established by the Government of India. Specifically, it was created to serve the railway sector.
Sector – Government-owned Financial Company (NBFC)
IRFC is a Non-Banking Financial Company (NBFC). This means that it is a non-banking financial institution. But it does the same work as banks in lending and investing.
Main function – Financing Indian Railway projects
The main function of IRFC is to provide loans to Indian Railway construction projects. For example, this company provides funds for works such as laying new railway tracks and purchasing railway vehicles.
Market capitalization – ₹1.8 lakh crore (June 2024)
The total value of IRFC in the stock market is ₹1.8 lakh crore. This is called market capitalization. This is a huge amount and it shows the credibility and strength of the company.
NSE Ticker – IRFC
This is the ticker symbol used to identify this company in the stock market. These shares are traded on the NSE (National Stock Exchange) under the symbol IRFC.
Recent Stock Performance
June 2024 High: ₹229
- High: IRFC stock price rose to ₹229 in June. This is the highest historical price (lifetime high) of the stock.
Current Price: ₹140 – ₹160 Range
- Low: The stock price fell in July 2024. It is now in a moving range of ₹140 to ₹160.
1-Year Decline: 46% (₹229 → ₹124)
- Price Drop: In the last 10 months, the stock has fallen 46% from ₹229 to ₹124. This is considered a major decline.
Reason for the rebound: Announcement of ₹18,658 crore railway projects
The central government recently announced 4 major railway projects worth ₹18,658 crore. These projects will require funding, which will give companies like IRFC a chance to get back into business. This is considered to be the main reason for the stock to appreciate again.
Indian Railways 2030 projects need funding
Indian Railways has planned mega development projects till 2030. Financial institutions like IRFC are likely to provide funding for these. This could also be a reason for the stock to gain value in the long run.
Financial Analysis
| Metric | Details |
| Revenue (FY24) | Rs. 26,560 crore (+15% YoY). |
| Net profit | Rs. 6,337 crore (+34% YoY). |
| Loan book | Rs. 4.5 lakh crore. |
| Dividend yield | 7.5% (at ₹1.05 per share). |
| P/E ratio | 8.5x (average sector P/E 12x). |
Expert Opinion: Why Buy?
Gaurav Goyal (Fynocrat Technologies)
IRFC is a fundamentally strong company. It is a reliable stock as it is backed by the government. Also, the stock price is currently trading at a low P/E ratio (i.e., price is low compared to earnings), which makes it an attractive investment. Buying strong stocks when prices are low is a good investment decision.
Avinash Gorakhskar (Profitmart Securities)
Indian Railways projects will require double (2x) debt by 2030. IRFC is a major financier for these projects. Therefore, IRFC stock will directly benefit from natural growth opportunities. The stock has proven future growth potential.
Prashant Dabse (Mehta Equities)
IRFC stock pays a good dividend (cash as net profit) on average. Also, it is safe as it is a government company. It is a safe investment with no risk, stable income and a stable return.
Indian railway finance corporation share price target 2025
Anush Jain of Lakshmi Shree Investments has provided important details about IRFC share price target 2025 and technical analysis.
Target Price 2025
Short-term target (6 months)
- The share price is likely to go up to ₹160 to ₹165. This is considered a target that can be achieved in about 6 months.
Long-term target (1-2 years)
- The share price is expected to go up to ₹200 or more. This is likely to be a good growth stock for long-term investors.
Technical Analysis
Support Level – ₹130
- The stock price is unlikely to fall below ₹130. This is considered the basic support price (bottom price) for a stock.
Resistance Level – ₹165
- If the stock price approaches ₹165, there may be some resistance (selling pressure) to move higher. However, if it crosses this level, the stock may rise even faster.
RSI (Relative Strength Index) – 55
- An RSI value of 55 indicates that the stock is in a neutral position. This indicates that the stock is neither overvalued nor undervalued.
IRFC’s Opportunities
Massive Railway Investment
The Indian government has planned to invest ₹50 lakh crore in the railway sector by 2030. Since IRFC is the main provider of funds for this scale of investments, its growth potential is high.
Digital Rail and Metro Projects
Digital rail services and metro transport projects are increasing in India. Such projects require funding; then financial institutions like IRFC play a key role.
Challenges of IRFC
Interest Rate Hike
If the interest rate of banks or the market increases, the cost of borrowing for IRFC will increase when it lends to other companies. This may result in losses or lower profits.
Government Policy Changes
If the government suddenly brings changes in the fiscal policy or railway projects, IRFC’s projects may also be affected. This may hinder its growth.
Why IRFC for long-term investors?
Government Backing
IRFC acts as the official financing company of Indian Railways. Since it is directly backed by the government, it is considered a safe investment. Companies that receive government backing are more likely to survive even in adverse market conditions.
Dividend Stock
IRFC has paid an annual dividend of 7% to 10% in the last few years. This helps in generating additional passive income along with the increase in share price. This is a very good opportunity for investors who want to get dividends.
Sector Growth
The Indian government is expanding the railway infrastructure. Many development projects like metro, fast trains, clean roads, digital facilities are being undertaken. IRFC is the main provider of funds for these development projects.
How to buy IRFC shares?
Open a Demat Account
Before buying shares, you must have a Demat Account (electronic share account). This can be easily opened through popular stock exchange companies (brokers) like Zerodha, Upstox, Groww, Angel One.
Do Research
Before buying any share, you should carefully examine its company information and financial reports (Quarterly Results). Read stock market news regularly and understand IRFC’s growth and future plans.
SIP Method (Systematic Investment Plan)
Share prices always go up and down. To overcome these ups and downs, you can invest a fixed amount every month in IRFC shares. This is called SIP method. It is a smart way for long-term investors.
Frequently Asked Questions (FAQ)
What is the dividend history of IRFC shares?
- 2021: ₹0.85
- 2022: ₹0.92
- 2023: ₹1.05 (per share).
Who are the major competitors of IRFC?
- REC Ltd, PFC, L&T Finance.
Can I buy without a demat account?
- No! Demat account is mandatory as per SEBI regulations.
Conclusion
IRFC shares are an opportunity for long-term wealth creation due to government support and growth in the railway sector. With a target of ₹200+ by 2025, the current price decline can be considered a discount opportunity. Talk to your advisor before investing!
