IRFC is a Government of India organization focusing on raising financial resources for diversification and handling its capital markets and other expenses. In this article, I will provide a technical analysis of the IRFC share price target for upcoming years.
What is IRFC?
IRFC or Indian Railway Finance Corporation is a wholly-owned subsidiary of the Government of India, the Ministry of Railways, and Indian Railways. The organization focuses on raising financial resources for diversification and handling its capital markets and other expenses.
IRFC was founded on December 12, 1986. The money raised by the company is through financial bonds as well as Financial institutions and banks. Currently, the managing director of the company is Amitabh Banerjee.
The initial public offering by the company was on January 18, 2021, the stock got listed on the National Stock Exchange of India and the Bombay Stock Exchange on January 29, 2021.
Financial results of IRFC
The revenue reported by the company for the financial year 2020 was Rs 13,823.45 crores. Operating income for the same year was Rs 13,740.39 crores. That income earned by the company was Rs 3,658.73 crores. The total assets held by the company in 2019 was Rs 2,06,603.60 crores and the total equity was Rs 18,585.51 crores. The official website of IRFC is irfc.co.in.
Board of Directors of IRFC
The Current Board of Directors of Indian Railway Finance Corporation includes Amitabh Banerjee as Chairman and Managing Director, Shelly Verma as Director (Finance) & Chief Financial Officer, Baldeo Purushartha as Nominee Director, Bhaskar Choradia as Nominee Director, Vallabhbhai Maneklal Patel as Non-Official Independent Director, and Sheela Pandit as Non-Official Independent Director.
IRFC Technical Analysis
IRFC share price is trading at Rs 29.45 (on 22nd November 2022)
The stock has been continuously moving between the two trend lines since its inception. The highest price touched by the stock is Rs 30 (on 22nd November 2022).
Since the break out of the trend line, IRFC share has shown a gradual increase in share price. Generally, the stock pattern represents price retracement which means the price comes down after crossing the maximum points and then moves upwards.
IRFC Fundamental Analysis
IRFC share dividend
Being a penny stock, IRFC share was in the news for last long. Since its inception, the company has declared dividends several times. The recent dividend declared by IRFC is 0.80 on November 2022. In September 2022, the dividend declared was 63 paise. On November 2021, the dividend declared was 77 paise and 1.05 was declared on February 2021.
IRFC Share Price Analysis
IRFC is a government company which means the majority of the stake is with the government. Moreover, the company also has a monopoly in the business because there is no other strong government or private competitor. This is one of the reasons the stock seems to give prominent returns in the future. Since the listing of stock on the Indian stock market, the share price has been continuously moved within the tight range.
IRFC share price target 2023
IRFC’s share price target for 2023 is Rs 35
Indian railways are the fourth largest railway system in the world after the US, Russia, and China. The Government of India initiated the idea of railway privatization and the government has also approved the participative models for railway connectivity and capacity argument projects to allow private ownership.
IRFC share price target 2024
IRFC’s share price target for 2024 is Rs 41
Various factors support the targeted share price for 2024. IRFC has been regularly supporting the modernization, expansion as well as growth of Indian railways with the help of funds generated.
IRFC share price target 2025
IRFC’s share price target for 2025 is Rs 49.
IRFC is trying to implement a cost-plus pricing model to finance there railway undertakings which will provide huge profit margins. Along with this, the company also believes that the low administrative and overhead costs along with high operational efficiency will result in enhanced profitability
IRFC share price target 2026
IRFC’s share price target for 2026 is Rs 79
The two important key initiatives announced by the government are the redevelopment of the railway station as well as the operation of passenger trains by private players. Privatization help to generate US$ 7.5 billion in the next few years.
IRFC share price target 2027
IRFC’s share price target for 2027 is Rs 89
The company is also the trusted lander for various other entities in the same segment like Rail Vikas Nigam Limited (RVNL), IRCON, Konkan Railway Corporation Limited (KRCL), Railtel, etc. IRFC is regularly expanding its borrowing portfolio to fulfill future railway projects.
IRFC share price target 2028
IRFC’s share price target for 2028 is Rs 103
The Government of India has identified 6 projects across the country to encourage the rail infrastructure. The government also allocated Rs 1,10,054 crores to the railway’s ministry during the Union budget 2021–22.
IRFC share price target 2029
IRFC’s share price target 2029 is Rs 120
IRFC share price target 2030
IRFC’s share price target 2030 is Rs 138
IRFC maintains funding reserves so that they should have enough funds to fulfill the statutory and operational requirements. Along with this, if the organization is not able to procure the necessary funds for repaying term loans or redeeming bonds then under the standard lease agreement, MoR should provide funds before the majority of term loans or bonds.
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Why you should invest in IRFC share?
1. IRFC is a low-risk business model to its nature of agreement with MoR.
2. IRFC offers a competitive cost of borrowing due to diversified sources of funding.
3. The company follows an active asset and liability management technique to make sure that there is a minimal mismatch between the assets and liabilities.
4. IRFC has performed consistently in the past few years and has also a cost-plus standard agreement with Indian railways that helps to generate regular income.
5. Company boasts of a senior management team with extensive experience in structured finance and corporate landing with exposure to the government as well as private sectors.
Disclaimer: If you want to invest in the stock market, you should consult your financial advisor before making a buying decision. You should assess the risk and study the company details.
Frequently asked questions
What will IRFC cost in 2025?
IRFC will cost around Rs 49 in 2025
Is IRFC good for long term?
Yes, IRFC is good for the long term.
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