Indian Railway Finance Corporation Share Price Target 2025 Price Target, Financial Performance & Expert Recommendations are explained below and benefit from it.
It is a financial institution established by the Government of India. Specifically, it was created to serve the railway sector.
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.
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.
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.
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.
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 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.
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). |
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.
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.
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.
Anush Jain of Lakshmi Shree Investments has provided important details about IRFC share price target 2025 and technical analysis.
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 services and metro transport projects are increasing in India. Such projects require funding; then financial institutions like IRFC play a key role.
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.
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.
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.
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.
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.
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.
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.
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.
What is the dividend history of IRFC shares?
Who are the major competitors of IRFC?
Can I buy without a demat account?
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!
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