⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IFCI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | IFCI | Market Cap | 15,471 Cr. | Current Price | 57.4 ₹ | High / Low | 74.5 ₹ |
| Stock P/E | 51.1 | Book Value | 6.53 ₹ | Dividend Yield | 0.00 % | ROCE | 14.9 % |
| ROE | 2.97 % | Face Value | 10.0 ₹ | DMA 50 | 54.3 ₹ | DMA 200 | 54.4 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.00 % | PAT Qtr | 6.85 Cr. | PAT Prev Qtr | 16.1 Cr. |
| RSI | 55.2 | MACD | 1.31 | Volume | 11,80,79,812 | Avg Vol 1Wk | 3,74,48,970 |
| Low price | 35.7 ₹ | High price | 74.5 ₹ | PEG Ratio | 1.93 | Debt to equity | 2.03 |
| 52w Index | 56.0 % | Qtr Profit Var | 112 % | EPS | 1.12 ₹ | Industry PE | 19.1 |
📊 Core Financials
- Revenue & Profitability: PAT fell from 16.1 Cr. to 6.85 Cr. QoQ, showing weak earnings momentum despite reported profit variation of 112% YoY.
- Margins: ROE at 2.97% is very low, while ROCE at 14.9% indicates moderate efficiency in capital use.
- Debt: Debt-to-equity ratio of 2.03 is manageable compared to peers but still indicates reliance on leverage.
- Cash Flow: No dividend payout (0.00%) suggests reinvestment or financial stress, limiting shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 51.1 vs Industry PE of 19.1 → highly overvalued relative to peers.
- P/B Ratio: Current Price (57.4 ₹) / Book Value (6.53 ₹) ≈ 8.79, extremely expensive compared to intrinsic worth.
- PEG Ratio: 1.93 indicates valuation is not justified by growth prospects.
- Intrinsic Value: Current price appears significantly overvalued given weak earnings and low ROE.
🏦 Business Model & Competitive Advantage
- IFCI operates as a financial institution with focus on lending and investment services.
- Competitive advantage is limited due to weak profitability and high valuation multiples.
- Business health depends on improving earnings consistency and reducing valuation mismatch.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer entry below 45 ₹, closer to intrinsic value and support levels.
- Long-Term Holding: Risky for conservative investors due to high P/E and weak ROE. Suitable only for speculative investors betting on turnaround.
✅ Positive
- ROCE at 14.9% shows moderate capital efficiency.
- Quarterly profit variation (+112%) indicates potential improvement trend.
- Debt-to-equity ratio of 2.03 is relatively controlled compared to sector averages.
⚠️ Limitation
- Extremely high P/E (51.1) and P/B (8.79) make the stock expensive.
- ROE at 2.97% is very weak, showing poor shareholder returns.
- No dividend yield, limiting investor reward.
📉 Company Negative News
- PAT dropped sharply from 16.1 Cr. to 6.85 Cr. QoQ.
- FII holdings decreased (-0.02%), showing reduced foreign investor confidence.
📈 Company Positive News
- Reported profit variation of +112% YoY suggests potential recovery signs.
- Stable DMA levels (50 DMA at 54.3 ₹, 200 DMA at 54.4 ₹) indicate technical support.
🏭 Industry
- Industry PE at 19.1 is much lower than IFCI’s valuation, highlighting overpricing.
- Financial services sector growth depends on credit demand and regulatory support.
- Competition from larger banks and NBFCs limits IFCI’s market positioning.
🔎 Conclusion
- IFCI is currently overvalued with weak ROE and declining profits.
- Moderate ROCE and controlled debt provide some stability, but valuation risks are high.
- Best suited for speculative investors entering below 45 ₹, while long-term conservative investors should avoid until fundamentals improve.
Would you like me to extend this into a comparative HTML report showing IFCI against IDBI and IDFC First Bank, so you can see which one offers better relative value in the financial sector?