Stock Snapshot
Price Performance
Recommendation Rationale
Growth opportunity supported by diversification into infrastructure financing.
Basis of our Recommendation
IRFC is diversifying its portfolio beyond Indian Railways, as evidenced by a significant ₹13,527-crore refinancing deal for the Hyderabad Metro. This move indicates moderate growth potential and enhances its market perception as a diversified infrastructure financier, although challenges remain in maintaining robust growth amidst a weak CAGR forecast.
Why We Like This Stock
- Significant refinancing deal for Hyderabad Metro enhances diversification
- Improved financial sustainability through expanded service offerings
- Strengthened market perception as a diversified infrastructure financier
Things To Watch Out For
- Weak FY28 CAGR forecast indicates potential growth headwinds
- Reliability score suggests some uncertainty in operational execution
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,549 | 6,658 | 7,280 | 7,504 | 7,873 |
| Profit Before Tax (Cr.) | 6,412 | 6,502 | 7,009 | 7,011 | 7,411 |
| PBT Margin | 97.9% | 97.7% | 96.3% | 93.4% | 94.1% |
| Net Profit (Cr.) | 6,412 | 6,502 | 7,009 | 5,258 | 5,559 |
| EPS | 4.9 | 5.0 | 5.4 | 4.0 | 4.3 |
Company Overview
Show Company Profile
Indian Railway Finance Corporation Limited engages in leasing of rolling stock and railway infrastructure assets in India. The company also engages in lending business; and borrowing funds from commercial markets, financial markets to finance the acquisition/creation of assets that are leased out to the Indian Railways. Indian Railway Finance Corporation Limited was incorporated in 1986 and is based in New Delhi, India.