irfc share price target 2025 by Motilal Oswal, irfc share price target Prediction 2025
Is the irfc’s share a good choice for long-term investment? Is it the right time to buy the irfc’s share? Can profit be made from this stock in a short time?
Friends, if you are also searching for answers to all these questions on Google, then you are in the right place. Today in this article we will discuss in detail about the future of irfc shares, we will find out the estimated Irfc share price target for year 2025.
Table of Contents
IRFC Overview
The IRFC is a public sector undertaking (PSU) under the Ministry of Railways, Government of India. It was established in December 1986 to mobilize funds from domestic and international markets for the Indian Railways, The IRFC plays a vital role in financing the Indian Railways’ growth and development.
The IRFC raises funds through issuing bonds, and loans from banks and financial institutions. These funds are then used to finance the Indian Railways’ capital expenditure, such as the purchase of locomotives, coaches, wagons, and other equipment, as well as the development of railway infrastructure. The IRFC also leases rolling stock assets and project assets to the Indian Railways.
Factors Considering for irfc share price target 2025
We consider following factors for IRFC share price target for year 2025
Company-specific factors:
- Strong parent company relationship: IRFC benefits from its close association with the Indian Railways, a government entity with a monopoly on rail transport in India. This relationship provides IRFC with a steady stream of business and implicit government backing, enhancing its creditworthiness and ability to raise funds at competitive rates.
- Stable and predictable cash flows: IRFC’s revenue primarily comes from leasing rolling stock and project assets to the Indian Railways under long-term contracts. These contracts guarantee fixed lease payments, providing IRFC with a stable and predictable stream of cash flows, crucial for debt repayment and future investments.
- Monopoly in railway finance: IRFC enjoys a near-monopoly position in the railway finance sector in India. This allows it to command a premium on its leases and minimize competition for funds, further solidifying its financial position.
- Government support: As a PSU under the Ministry of Railways, IRFC receives support from the government in terms of policy and decision-making. This can be beneficial in navigating regulatory hurdles and accessing resources, potentially giving IRFC an edge over private players.
Valuation factors:
- Price-to-earnings (P/E) ratio: The P/E ratio of IRFC for current financial Year is 16.4.
- Price-to-book (P/B) ratio: P/B ration is 2.09.
- Dividend yield: Div Yield of IRFC is 1.97%.
- Growth potential: Investors consider IRFC’s future growth prospects based on factors like the Indian Railways’ expansion plans, government infrastructure spending, and overall economic growth.
IRFC Share price target 2025
IRFC has shown strong upward momentum in its share price over the past few years, Income growth of company is 17.7% for 1 Year & 21.2% for 3 Years, Profit growth of company is 4.06% for 1 Year & 25.68% for 3 Years and ROE growth of IRFC is 14.66% for 1 Year & 14.61% for 3 Years.
by considering all theses technical & non technical parameter, we predict that indian railway financial corporation share will show growth in year 2025.
As per our analysis IRFC share price target for 2025 will be Rs.155 & Rs.192
IRFC Share Price Target 2025 | Price |
---|---|
January 2025 | ₹155 |
February 2025 | ₹160 |
March 2025 | ₹165 |
April 2025 | ₹168 |
May 2025 | ₹171 |
June 2025 | ₹175 |
July 2025 | ₹179 |
August 2025 | ₹182 |
September 2025 | ₹186 |
October 2025 | ₹188 |
November 2025 | ₹190 |
December 2025 | ₹192 |
irfc share price target for 2023-2030
irfc share price target 2025 by Motilal Oswal
Motilal Oswal, a leading stockbroker and financial services firm, has released its share price target for IRFC (Indian Railway Finance Corporation) for 2025. They believe that IRFC’s stock price could reach ₹135 by the end of 2025.
This target is based on a number of factors, including IRFC’s strong financial position, its near-monopoly in the railway finance sector, and the Indian government’s continued investment in infrastructure development.
Motilal Oswal is bullish on IRFC, citing rising interest rates, a potential market rally, and supportive government policies as key drivers of future price gains:
- Rising interest rates: Higher interest rates could lead to higher yields on IRFC’s bonds, which could make its stock more attractive to investors.
- Improved market sentiment: If the overall market sentiment improves, IRFC’s stock price could also rise.
- Government policies: If the government adopts policies that are favorable to infrastructure development, IRFC could see a surge in business, which could also drive up its stock price.
However, it is important to note that Motilal Oswal’s share price target for 2025 is just an estimate, and there is no guarantee that IRFC’s stock price will actually reach that level. Investors should always do their own research before making any investment decisions.
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