IRFC Share Price Target 2023, 2024, 2025, 2026, 2030
IRFC stands for Indian Railway Finance Corporation, which is a public sector undertaking under the Ministry of Railways, Government of India. It was established in 1986 with the primary objective of raising funds from the market to finance the expansion and modernization of the Indian Railways.
IRFC is responsible for financing the acquisition of rolling stock assets and other railway infrastructure projects. It raises funds through bonds and other financial instruments from domestic and international markets, and then lends these funds to the Indian Railways for their various capital expenditures.
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IRFC Limited Overview
IRFC is a wholly-owned government company, with the President of India being the sole shareholder. Its operations are managed by a Board of Directors appointed by the Government of India.
IRFC raises funds through various financial instruments such as tax-free bonds, market borrowings, and external commercial borrowings. It has also been authorized to raise funds through masala bonds (rupee-denominated bonds issued in foreign markets) since 2016.
IRFC primarily provides financial assistance to the Indian Railways for the acquisition of rolling stock assets such as locomotives, coaches, and wagons, as well as for the development of railway infrastructure. It also provides lease financing for rolling stock assets to the Indian Railways.
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Business Model of IRFC Limited
Key components of IRFC’s business model:
- Fundraising: IRFC raises funds from various sources such as tax-free bonds, market borrowings, and external commercial borrowings. It also issues bonds and other financial instruments in the domestic and international markets to raise funds.
- Lending: IRFC primarily lends these funds to the Indian Railways for the acquisition of rolling stock assets such as locomotives, coaches, and wagons, as well as for the development of railway infrastructure. It provides both term loans and lease financing for rolling stock assets.
- Interest Rates: IRFC charges interest rates on its loans to the Indian Railways, which are generally lower than those charged by commercial banks. This is because IRFC enjoys a higher credit rating due to its strong financial position and government ownership.
- Risk Management: IRFC manages its risks by diversifying its funding sources, monitoring the creditworthiness of its borrowers, and maintaining a robust risk management framework.
- Revenue Streams: IRFC generates revenue primarily from interest income on its loans to the Indian Railways. It also earns lease rental income from its lease financing activities.
IRFC Share Price
Indian Railway Finance Corporation Limited (IRFC) is a government-owned company that is listed on the Indian stock exchanges. Its shares can be traded by the public. IRFC’s initial public offering (IPO) was launched in January 2021, and its shares were listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) in January 2021.
As on 26 September 2023, IRFC Share Price was Rs.76.55, IRFC Share 52 week high at Rs. 92.35/- & 52 week low Rs.20.80/-.
| Company Name | Indian Railway Finance Corporation Limited (IRFC) |
| Share Name | IRFC |
| Founded in | 1986 |
| Headquarters | New Delhi |
| CEO | Amitabh Banerjee |
| Revenue | 17655.20 crores INR (2022) |
| Market Capitalization | ₹351.51 Billion |
| Primary Exchange | NSE, BSE |
| Official Website | Click Here |
Shareholding of IRFC Ltd
IRFC (Indian Railway Finance Corporation) is a wholly-owned government company, with the President of India being the sole shareholder. As per the company’s website, the Government of India holds 100% of the paid-up equity share capital of IRFC.
IRFC Share Price Target 2023, 2024, 2025, 2026, 2027, 2030, 2040, 2050
| Year | First Target | Second Target |
| 2023 | 95 | 110 |
| 2024 | 120 | 150 |
| 2025 | 155 | 192 |
| 2026 | 205 | 248 |
| 2027 | 255 | 310 |
| 2028 | 320 | 335 |
| 2029 | 340 | 390 |
| 2030 | 398 | 452 |
| 2040 | 835 | 910 |
| 2050 | 1735 | 1805 |
Note:- “That these share price targets for “IRFC Share” are only provided for the purpose of reference and that this prediction will only hold true in the event that there is optimism in the market. Any uncertainties regarding the company or the current state of the global market will not be addressed in this analysis.”
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Recent News of IRFC Limited Share
Some of the recent news related to Indian Railway Finance Corporation Limited (IRFC) and its shares:
- Government plans stake sale in Indian Railways funding arm – The government is reportedly planning to sell a part of its stake in IRFC. According to media reports, the government is looking to raise Rs. 10,000 crore through the stake sale. The government currently holds a 100% stake in IRFC.
- IRFC posts Rs 6,337 crore profit in FY23– IRFC posted a profit of Rs 6,337 crore in FY23, up 17.70% year-on-year. The company’s revenue from operations also grew by 17.70% to Rs 23,891 crore. The strong financial performance was driven by the company’s focus on asset monetization and cost optimization.
- IRFC dividend 2023: Shares set to trade ex-date on September 15 — IRFC declared a dividend of Rs. 2.50 per share for the financial year 2022-23. The shares will trade ex-dividend on September 15, 2023. The record date for the dividend is September 13, 2023, and the dividend will be paid on September 29, 2023.
- G20 Summit: Railway Stocks Soar on the Back of India-Middle East-Europe Rail-Port Economic Corridor – The G20 Summit in New Delhi in September 2023 saw a number of announcements related to infrastructure development, including the development of an India-Middle East-Europe Rail-Port Economic Corridor. The corridor is expected to boost trade and investment between India and the Middle East and Europe. This is seen as a positive for IRFC, as the company is the primary funding arm of the Indian Railways.
IRFC Share Price Target 2023
The IRFC plays a crucial role in ensuring the financial viability of the Indian Railways, which is the backbone of the country’s transportation infrastructure. Its efforts have been instrumental in the growth and modernization of the Indian Railways over the years.
IRFC share price target 2023 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2023 | ₹95 | ₹110 |
IRFC Share Price Target 2024
Indian Railway Finance Corporation (IRFC) has consistently maintained high credit ratings from rating agencies such as CRISIL, ICRA, and CARE. These ratings indicate the company’s strong financial position and ability to meet its financial obligations.
IRFC share price target 2024 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2024 | ₹120 | ₹150 |
IRFC Share Price Target 2025
IRFC revolves around raising funds at lower interest rates and lending these funds to the Indian Railways for their capital expenditures, with a focus on acquiring rolling stock assets and developing railway infrastructure. IRFC’s efficient financial management and strong credit rating have made it a critical financial institution for the growth and modernization of the Indian Railways. As per our Analysis first target for irfc share price target 2025 will be Rs.155 & Second is Rs.192.
IRFC share price target 2025 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2025 | ₹155 | ₹192 |
IRFC Share Price Target 2026
In the financial year 2020-21 (April 2020 to March 2021), IRFC’s net profit after tax (PAT) stood at INR 3,192 crore, which was a decrease of 5.9% compared to the previous financial year. Its total income for the year was INR 13,045 crore, which was a decrease of 9.9% compared to the previous year.
IRFC share price target 2024 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2026 | ₹205 | ₹248 |
IRFC Share Price Target 2027
Despite the decline in net profit and total income, IRFC’s operating profit margin remained strong at 91.7%, indicating efficient financial management. The company’s assets under management (AUM) increased by 17.6% to INR 3.84 lakh crore in the same financial year, indicating strong growth potential.
IRFC share price target 2027 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2027 | ₹255 | ₹310 |
IRFC Share Price Target 2028
The share price of IRFC is trading at around INR 25-26 per share, and the company’s market capitalization is around INR 24,000 crore. IRFC has an AAA credit rating from major credit rating agencies, indicating its strong financial position and creditworthiness.
IRFC share price target 2028 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2028 | ₹320 | ₹335 |
IRFC Share Price Target 2030
IRFC has consistently maintained high credit ratings from rating agencies such as CRISIL, ICRA, and CARE, indicating its strong financial position and ability to meet its financial obligations.
Overall, IRFC’s financial performance has been strong, and the company’s efficient financial management has helped to support the growth and modernization of the Indian Railways.
IRFC share price target 2030 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2030 | ₹398 | ₹492 |
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Future of IRFC Share
- The Indian Railways’ plans for modernization and expansion: The Indian Railways has ambitious plans for modernizing and expanding its infrastructure, which could create significant demand for IRFC’s financing services.
- Government policies and regulations: Changes in government policies and regulations could impact IRFC’s operations and profitability, particularly in the areas of interest rates, taxes, and lending practices.
- Competition from other financial institutions: IRFC faces competition from other financial institutions that also provide funding to the Indian Railways, such as commercial banks and other NBFCs.
- Economic conditions and market volatility: Changes in economic conditions and market volatility could impact IRFC’s borrowing costs and ability to raise funds from various sources.
- Technological advancements: Technological advancements in the Indian Railways sector could impact IRFC’s business model, particularly in the areas of rolling stock and track-related assets.
Risk of IRFC Limited Share
- Credit risk: As a lender to the Indian Railways, IRFC is exposed to credit risk, which is the risk of loss due to the borrower’s inability or unwillingness to repay the loan.
- Interest rate risk: IRFC is exposed to interest rate risk, which is the risk of loss due to changes in interest rates. IRFC’s cost of funds may increase if interest rates rise, which could impact its profitability.
- Market risk: IRFC’s operations and profitability are impacted by market risks, such as changes in market conditions, volatility in financial markets, and fluctuations in foreign exchange rates.
- Regulatory risk: IRFC is subject to regulatory risk, which is the risk of loss due to changes in government policies, regulations, or laws that impact its operations and profitability.
- Technological risk: IRFC is exposed to technological risk, which is the risk of loss due to changes in technology that impact its business model, operations, or profitability.
- Competition risk: IRFC faces competition from other financial institutions that also provide funding to the Indian Railways. Increased competition could impact IRFC’s market share and profitability.
- Reputation risk: IRFC’s reputation could be impacted by factors such as defaults by borrowers, allegations of misconduct, or negative media coverage.
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FAQs
In Year 2030, IRFC Share price will be approx 130 to 150 inr but It is important to conduct thorough research and analysis before investing in any stock.
In 2023, Future share price of IRFC Share is Rs. 37/- approx.
Yes as per our analysis, IRFC’s financial performance has been strong, and the company’s efficient financial management has helped to support the growth and modernization of the Indian Railways.
