Indian Railway Finance Corporation Ltd’s fundamental analysis shows a market capitalization of ₹2,40,460.51 crore, a PE ratio of 36.55, a debt-to-equity ratio of 8.02, and a return on equity (ROE) of 13.7%. The company demonstrates strong financial performance and effective leverage management, reflecting its robust market position.
Content:
- Indian Railway Finance Corporation Ltd Overview
- Indian Railway Finance Corporation Financial Results
- Indian Railway Finance Corporation Financial Analysis
- Indian Railway Finance Corporation Company Metrics
- Indian Railway Finance Corporation Stock Performance
- Indian Railway Finance Corporation Peer Comparison
- Indian Railway Finance Corporation Shareholding Pattern
- Indian Railway Finance Corporation History
- How To Invest In Indian Railway Finance Corporation Ltd Share?
- Indian Railway Finance Corporation Limited Fundamental Analysis – FAQs
Indian Railway Finance Corporation Ltd Overview
Indian Railway Finance Corporation Ltd (IRFC) is the dedicated financing arm of Indian Railways, specializing in raising funds for railway projects. It plays a crucial role in financing the expansion and modernization of railway infrastructure, ensuring efficient financial management.
The company has a market capitalization of ₹2,40,460.51 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 80.4% below its 52-week high of ₹229 and 89.6% above its 52-week low of ₹44.8. The all-time high of the stock is ₹229, while the all-time low is ₹19.3.
Indian Railway Finance Corporation Financial Results
IRFC’s financial performance shows growth, with total income increasing from ₹20,302 crore in FY 22 to ₹26,656 crore in FY 24. Profitability has been stable, with EPS rising from ₹4.66 to ₹4.91 and PPOP margin fluctuating between 24.04% and 30%.
- Revenue Trend: Total income increased from ₹20,302 crore in FY 22 to ₹23,933 crore in FY 23, and further to ₹26,656 crore in FY 24, indicating strong revenue growth.
- Equity and Liabilities: IRFC’s equity and liabilities structure reflects financial stability and strategic management. The company maintains a balance between equity financing and manageable debt levels, ensuring sustainability and flexibility in capital allocation for growth initiatives.
- Profitability: PPOP Margin decreased from 30% in FY 22 to 26.47% in FY 23, and further to 24.04% in FY 24, indicating a decline in operational efficiency.
- Earnings per Share (EPS): EPS increased slightly from ₹4.66 in FY 22 to ₹4.85 in FY 23, and further to ₹4.91 in FY 24, indicating steady profit growth per share.
- Return on Net Worth (RoNW): RoNW has shown a stable trend, reflecting consistent equity utilization efficiency and profitability.
- Financial Position: The company’s financial position strengthened with profit before tax increasing from ₹6,090 crore in FY 22 to ₹6,337 crore in FY 23, and further to ₹6,412 crore in FY 24, showcasing robust financial health and management.
Indian Railway Finance Corporation Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 26,656 | 23,933 | 20,302 |
| Total Expenses | 20,248 | 17,599 | 14,211 |
| Pre-Provisioning Operating Profit | 6,408 | 6,334 | 6,091 |
| PPOP Margin (%) | 24.04 | 26.47 | 30 |
| Provisions and Contingencies | -3.93 | -2.91 | 0.46 |
| Profit Before Tax | 6,412 | 6,337 | 6,090 |
| Tax % | — | — | 0.01 |
| Net Profit | 6,412 | 6,337 | 6,090 |
All values in ₹ Crores.
Indian Railway Finance Corporation Company Metrics
IRFC’s market cap is ₹2,40,460.51 crore, with a book value of ₹38.8 per share and a face value of ₹10.0. It has a significant debt of ₹4,07,037 crore, an asset turnover of 0.05, a dividend yield of 0.81%, and an EPS of ₹4.93.
Market Capitalization: Indian Railway Finance Corporation Ltd’s market capitalization represents the total market value of its outstanding shares, amounting to ₹2,40,460.51 crore.
Book Value: IRFC has a book value of ₹38.8 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of IRFC’s shares is ₹10.0, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: IRFC has an asset turnover ratio of 0.05, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: IRFC has a significant debt of ₹4,07,037 crore, reflecting its financial leverage and obligations.
EBITDA: The company’s EBITDA is not provided in the data, but the net profit is ₹6,412 crore, indicating its profitability over the financial year.
Dividend Yield: IRFC has a dividend yield of 0.81%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): IRFC has an EPS of ₹4.93, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
Indian Railway Finance Corporation Stock Performance
Indian Railway Finance Corporation Ltd delivered impressive returns on investment with 277% over 1 year and 97.9% over 3 years, highlighting strong long-term performance and overall profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 277 |
| 3 Years | 97.9 |
Example: If an investor had invested ₹1,000 in IRFC’s stock:
1 year ago, their investment would be worth ₹3,770.
3 years ago, their investment would have grown to ₹1,979.
This highlights strong long-term performance and overall profitability for investors.
Indian Railway Finance Corporation Peer Comparison
IRFC has a CMP of ₹184.56, a market cap of ₹2,41,178.93 crore, a P/E of 37.43, an ROE of 13.66%, and a dividend yield of 0.81%. Comparatively, Power Finance Corporation and REC Ltd have lower P/E ratios and higher ROEs, while Indian Renewable and IFCI show diverse metrics.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| I R F C | 184.56 | 241178.93 | 37.43 | 13.66 | 4.93 | 277.42 | 5.73 | 0.81 |
| Power Fin.Corpn. | 496.65 | 164079.8 | 7.92 | 21.33 | 62.81 | 135.11 | 9.85 | 2.72 |
| REC Ltd | 578.8 | 152346.11 | 10.41 | 22.2 | 55.59 | 158.05 | 10.05 | 2.76 |
| Indian Renewable | 247.75 | 66603.05 | 49.65 | 17.29 | 5.18 | 9.3 | 0 | |
| IFCI | 74.21 | 19398.2 | 122.83 | 2.49 | 0.71 | 410.03 | 10.25 | 0 |
| Tour. Fin. Corp. | 190.64 | 1760.31 | 19.32 | 8.65 | 10.08 | 94.73 | 10.49 | 1.31 |
| Guj. State Fin. | 24.08 | 214.58 | -13.7 | 214.77 | 0 |
Indian Railway Finance Corporation Shareholding Pattern
Indian Railway Finance Corporation’s shareholding pattern from FY 2023 to FY 2024 shows promoters maintaining stable holdings at 86.36%. FIIs slightly decreased from 1.15% to 1.08%, DIIs decreased from 2.62% to 0.89%, while retail and others’ holdings increased from 9.87% to 11.68%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 86.36 | 86.36 | 86.36 |
| FII | 1.08 | 1.15 | 1.12 |
| DII | 0.89 | 2.62 | 3.18 |
| Retail & others | 11.68 | 9.87 | 9.33 |
All values in %
Indian Railway Finance Corporation History
Indian Railway Finance Corporation (IRFC) was established in 1986 as the dedicated financing arm of the Indian Railways. Its primary objective is to raise funds for the expansion and modernization of the railway infrastructure, ensuring efficient financial management and supporting the ambitious growth plans of Indian Railways.
In the early years, IRFC focused on leasing rolling stock to Indian Railways, including locomotives, passenger coaches, and freight wagons. This approach allowed Indian Railways to modernize its fleet without incurring significant upfront costs, thereby improving operational efficiency and service quality.
As the financial landscape evolved, IRFC diversified its funding sources. It began issuing bonds and commercial papers, tapping both domestic and international markets. This strategic move enabled IRFC to secure competitive financing rates and broaden its investor base, enhancing its financial stability.
In January 2021, IRFC made a significant milestone by going public. It launched its Initial Public Offering (IPO) on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The IPO was well-received, reflecting investor confidence in IRFC’s robust business model and its critical role in the railway sector.
Today, IRFC continues to play a pivotal role in the growth and development of Indian Railways. It finances various infrastructure projects, including track electrification, station redevelopment, and the procurement of high-speed trains. IRFC’s strategic financial management ensures the continuous modernization and expansion of India’s railway network.
How To Invest In Indian Railway Finance Corporation Ltd Share?
Investing in Indian Railway Finance Corporation Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Indian Railway Finance Corporation Ltd shares and place your buy order.
Indian Railway Finance Corporation Limited Fundamental Analysis – FAQs
Indian Railway Finance Corporation Ltd’s fundamental analysis shows a market capitalization of ₹2,40,460.51 crore, a PE ratio of 36.55, a debt-to-equity ratio of 8.02, and an ROE of 13.7%, indicating strong financial performance and effective leverage management.
Indian Railway Finance Corporation Ltd has a market capitalization of ₹2,40,460.51 crore, reflecting its substantial market value and critical role in financing Indian Railways’ growth.
Indian Railway Finance Corporation Limited (IRFC) is the dedicated financing arm of Indian Railways, providing funds for the expansion and modernization of railway infrastructure through various financial instruments.
IRFC is a public sector enterprise owned by the Government of India, under the administrative control of the Ministry of Railways, supporting the financial needs of Indian Railways.
The main shareholders of IRFC include the Government of India, holding a majority stake, along with institutional and retail investors who participate through the stock exchanges.
Indian Railway Finance Corporation operates in the financial services industry, specifically focusing on raising funds for the Indian Railways through various debt instruments and financial products.
To invest in IRFC shares, open a brokerage account, complete KYC, deposit funds, and purchase shares through the stock exchange using your broker’s platform or app.
Determining if IRFC is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 36.55, IRFC may be considered overvalued, indicating the stock is priced higher relative to its earnings. Investors should consider this when evaluating its potential investment value.
