⚠ 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 | 15,107 Cr. | Current Price | 56.1 ₹ | High / Low | 74.5 ₹ |
| Stock P/E | 49.9 | Book Value | 6.53 ₹ | Dividend Yield | 0.00 % | ROCE | 14.9 % |
| ROE | 2.97 % | Face Value | 10.0 ₹ | DMA 50 | 56.7 ₹ | DMA 200 | 55.5 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.00 % | PAT Qtr | 6.85 Cr. | PAT Prev Qtr | 16.1 Cr. |
| RSI | 48.1 | MACD | -0.96 | Volume | 1,34,70,321 | Avg Vol 1Wk | 6,06,64,297 |
| Low price | 35.7 ₹ | High price | 74.5 ₹ | PEG Ratio | 1.89 | Debt to equity | 2.03 |
| 52w Index | 52.6 % | Qtr Profit Var | 112 % | EPS | 1.12 ₹ | Industry PE | 18.0 |
📊 Financial Overview
- Revenue & Profitability: PAT declined from ₹16.1 Cr. to ₹6.85 Cr. (QoQ), showing weak earnings momentum.
- Margins: ROE at 2.97% is very low, while ROCE at 14.9% is relatively strong, indicating better capital efficiency than profitability.
- Debt: Debt-to-equity ratio of 2.03 is moderate but still adds financial risk.
- Cash Flow: EPS of ₹1.12 is weak, reflecting limited earnings power.
💹 Valuation Metrics
- P/E Ratio: 49.9 vs Industry PE of 18.0 → highly overvalued compared to peers.
- P/B Ratio: Price ₹56.1 vs Book Value ₹6.53 → trading at a steep premium.
- PEG Ratio: 1.89 → suggests valuation is expensive relative to growth.
- Intrinsic Value: Current valuation looks stretched; fundamentals do not justify premium multiples.
🏢 Business Model & Competitive Advantage
- IFCI operates as a financial institution with focus on lending and investment services.
- Competitive advantage is limited; government backing provides some stability, but profitability remains weak.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹35–45 range looks safer given overvaluation and weak fundamentals.
- Long-Term Holding: Risky for conservative investors. Suitable only for speculative positions; monitor profitability and debt closely.
✅ Positive
- ROCE at 14.9% indicates efficient capital utilization.
- Quarterly profit variation shows improvement in growth trend (112%).
- Moderate debt-to-equity ratio compared to peers.
⚠️ Limitation
- Very high P/E ratio (49.9) compared to industry average.
- Low ROE (2.97%) reflects poor shareholder returns.
- EPS of ₹1.12 is weak relative to price.
📉 Company Negative News
- PAT dropped sharply from ₹16.1 Cr. to ₹6.85 Cr.
- FII holdings decreased slightly (-0.02%).
- Stock trading near DMA levels, showing lack of momentum.
📈 Company Positive News
- Quarterly profit variation of 112% indicates growth recovery.
- Stable technical indicators with RSI at 48.1 (neutral zone).
🏦 Industry
- Industry PE at 18.0 highlights sector is valued lower than IFCI.
- Financial services sector growth depends on credit demand and government reforms.
🔎 Conclusion
- IFCI is overvalued with weak profitability and low ROE despite decent ROCE.
- Entry around ₹35–45 is safer for speculative investors.
- Not ideal for long-term conservative holding; monitor earnings recovery and debt management closely.