Indian Railway Finance Corporation (IRFC) share price closed at ₹183.44 on July 26, 2024, up 0.09% from the previous day’s close. Despite the marginal gain, IRFC’s stock has seen an impressive 420.40% surge in the last 12 months.
The company’s strong financial performance and growth prospects have been the key drivers behind the stock’s rally. IRFC reported a 34% increase in its Q4 FY2024 net profit to ₹1,717 crore. The board also approved a ₹50,000 crore fund-raising plan to support the company’s expansion.
IRFC’s market capitalization currently stands at ₹2,39,729 crore, making it a large-cap stock. The stock’s price-to-earnings (P/E) ratio is 37.32, while the price-to-book (P/B) ratio is 4.88.
Promoters hold 86.36% stake in the company, while domestic institutional investors (DIIs) and foreign institutional investors (FIIs) own 0.88% and 1.08% respectively. The company’s chairman and managing director is Shelly Verma.
IRFC’s strong financial performance is reflected in its return on capital employed (ROCE) of 5.73% and return on equity (ROE) of 13.6%. The company has been maintaining a healthy dividend payout ratio as well.
The stock has seen a 52-week high of ₹229 and a low of ₹34.55. Despite the recent gains, analysts believe that IRFC still has room for further upside given its strong fundamentals and growth prospects.
The company’s business model of borrowing funds from the financial markets to finance the acquisition and creation of assets, which are then leased out to the Indian Railways, has proven to be a successful strategy.
IRFC’s strong relationship with the Indian Railways and its position as a key player in the country’s infrastructure development make it an attractive investment option for long-term investors.
The company’s recent fund-raising plan is expected to further strengthen its balance sheet and support its growth initiatives. IRFC’s focus on diversifying its funding sources and exploring new business opportunities is also likely to contribute to its future growth.
Overall, IRFC’s strong financial performance, growth prospects, and attractive valuation make it a stock to watch out for in the coming months. Investors looking for exposure to the infrastructure sector and the Indian Railways’ growth story should consider adding IRFC to their portfolio.
