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Indian Railway Finance Corp Ltd (BOM: 543257)
Indian Railway Finance Corp Ltd (BOM: 543257) is betrothed in borrowing funds from the financial marketplaces to finance the acquisition/formation of assets rented out to the Indian Railways or any object under the Ministry of Railways. Its only working segment is Leasing and Finance. The company makes maximum revenue from Lease Income.
Industry: Miscellaneous Business Credit Institutions
Founded: 1986
Employees: 42
Stock Exchange: Bombay Stock Exchange
Ticker Symbol: 543257
Share Price Of Bom: 543257
Indian Railway Finance Corp Ltd’s share price is ₹126.25. Its GF Value is ₹52.77. Based on the association between the current stock price and the GF Value, GuruFocus trusts Indian Railway Finance Corp Ltd stock is Significantly Overvalued.
The GF Value represents the current inherent value of a stock derived from our proprietary algorithm. It is based primarily on the historical multiples of where the stocks have been traded and the future growth of the business, adjusted for past returns and growth. Backtesting and daily updated model portfolios have verified the GF Value.
GF Value Growth:
In addition to considering the current valuation, the growth potential of a company’s value is equally important. Companies with faster growth rates tend to increase their value more quickly. Therefore, it’s also essential to look at the Price-to-Future GF Value ratios. The results are shown below:
Price: ₹126.25
Next FY1 End:₹53.8,GF Value: 2.35
Current: ₹52.77,GF Value: 2.39
Next 12 Month: ₹61.62, GF Value: 2.05
Next FY2 End: ₹62.35, GF Value: 2.02
Pros and Cons of Indian Railway Finance Corporation (Bom: 543257)
✅ Pros:
Government Backing: IRFC is a public sector enterprise under the Ministry of Railways, ensuring financial stability and low risk.
Monopoly Position: It is the primary financial institution responsible for funding Indian Railways, giving it a unique advantage.
Stable Revenue Model: IRFC earns through long-term lease agreements with Indian Railways, ensuring consistent revenue.
Low Credit Risk: Since Indian Railways is the sole lessee, there is minimal default risk.
Tax Benefits: Being a government-backed entity, IRFC enjoys certain tax advantages and lower borrowing costs.
Strong Credit Ratings: Due to sovereign backing, IRFC enjoys high credit ratings, enabling cheaper borrowing.
Listing on Stock Market: Provides retail investors an opportunity to invest in a railway-focused financial institution.
❌ Cons:
Dependency on Indian Railways: Its entire business relies on Indian Railways, making it vulnerable to government policy changes.
Regulatory Risks: Being a PSU, it is subject to strict regulations and government interventions.
Lower Profit Margins: Since IRFC operates mainly as a financing arm, its profit margins are relatively lower than private NBFCs.
Limited Business Diversification: Unlike other financial institutions, IRFC cannot expand into new sectors, restricting growth potential.
Stock Price Volatility: Being a government-owned enterprise, stock performance is sometimes influenced by policy decisions rather than business fundamentals.
Interest Rate Sensitivity: As a financing company, IRFC is affected by fluctuations in interest rates, impacting its borrowing cost.
Delays in Railway Projects: IRFC’s leasing and financing activities could impact if railway expansion slows down.
Financial of Indian Railway Finance Corporation (Bom: 543257)
Indian Railway Finance Corporation (IRFC) has demonstrated stable financial performance in recent quarters. Below is a summary of its key financial metrics:
| Metric | Q3 FY24-25 | Q2 FY24-25 | Q1 FY24-25 | Q4 FY23-24 |
| Total Income (₹ Crore) | 6,766.39 | 6,900 | 6,766 | 6,478 |
| Profit Before Tax (₹ Crore) | 1,630.66 | 1,613 | 1,577 | 1,717 |
| Net Profit (₹ Crore) | 1,631 | 1,613 | 1,577 | 1,717 |
| Earnings Per Share (₹) | 1.25 | 1.23 | 1.21 | 1.32 |
Note: The above data compile from various financial reports and may be subject to revisions.
These figures indicate a consistent revenue stream and profitability for IRFC over the recent quarters. The company’s stable earnings per share reflect its steady financial health.
You can refer to IRFC’s official investor presentations and annual reports on their website for a more detailed analysis, including comprehensive financial statements and future projections.
Please note that financial performance is subject to market conditions and other factors. It’s advisable to consult financial advisors or conduct thorough research before making investment decisions.
FAQs About Indian Railway Finance Corporation Financials
When was the Indian Railway Finance Corporation founded?
Indian Railway Finance Corporation found in 1986.
Where is Indian Railway Finance Corporation headquartered?
Indian Railway Finance Corporation headquarter in New Delhi, India.
What is the size of Indian Railway Finance Corporation?
Indian Railway Finance Corporation has 42 total employees.
What industry is Indian Railway Finance Corporation in?
Indian Railway Finance Corporation’s primary industry is Other Financial Services.
Is the Indian Railway Finance Corporation a private or public company?
Indian Railway Finance Corporation is a Public company.
What is the Indian Railway Finance Corporation’s stock symbol?
The ticker symbol for Indian Railway Finance Corporation is 543257.
What is the current stock price of IRFC?
As of 10-Feb-2025, the stock price of Indian Railway Finance Corporation is $1.49.
What is IRFC’s current market cap?
The current market capitalization of Indian Railway Finance Corporation is $19.5B.
What is the Indian Railway Finance Corporation’s current revenue?
The trailing twelve-month revenue for Indian Railway Finance Corporation is $3.2B.
What is Indian Railway Finance Corporation’s annual earnings per share (EPS)?
Indian Railway Finance Corporation’s EPS for 12 months was $0.06.
Conclusion
However, its heavy dependence on Indian Railways, regulatory constraints, and sensitivity to interest rate fluctuations pose potential risks. While IRFC demonstrate steady financial performance, its growth is primarily tied to government policies and railway expansion.
BOM: 543257 has an annual dividend of 1.50 INR per share, with a yield of 1.13%. The dividend pay every six months; the last ex-dividend date was Nov 12, 2024.