⚠ 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.
IRFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | IRFC | Market Cap | 1,28,385 Cr. | Current Price | 98.2 ₹ | High / Low | 149 ₹ |
| Stock P/E | 18.3 | Book Value | 43.3 ₹ | Dividend Yield | 2.14 % | ROCE | 5.83 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 109 ₹ | DMA 200 | 121 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.06 % | PAT Qtr | 1,802 Cr. | PAT Prev Qtr | 1,777 Cr. |
| RSI | 35.0 | MACD | -4.30 | Volume | 1,17,93,534 | Avg Vol 1Wk | 1,35,33,611 |
| Low price | 94.3 ₹ | High price | 149 ₹ | PEG Ratio | 8.29 | Debt to equity | 2.73 |
| 52w Index | 7.23 % | Qtr Profit Var | 10.5 % | EPS | 5.36 ₹ | Industry PE | 18.0 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹1,777 Cr. to ₹1,802 Cr. (QoQ), showing steady earnings growth.
- Margins: ROE at 12.8% is decent, but ROCE at 5.83% reflects weak capital efficiency.
- Debt: Debt-to-equity ratio of 2.73 indicates high leverage, which is a concern.
- Cash Flow: EPS of ₹5.36 is modest relative to price, limiting earnings strength.
💹 Valuation Metrics
- P/E Ratio: 18.3 vs Industry PE of 18.0 → fairly valued compared to peers.
- P/B Ratio: Price ₹98.2 vs Book Value ₹43.3 → trading at a premium.
- PEG Ratio: 8.29 → suggests valuation is expensive relative to growth.
- Intrinsic Value: Fundamentals show moderate strength, but high debt and weak ROCE limit upside potential.
🏢 Business Model & Competitive Advantage
- Indian Railway Finance Corporation (IRFC) operates as the financing arm of Indian Railways.
- Competitive advantage lies in government backing and monopoly-like position in railway financing.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹95–105 range looks safer given valuation and technical weakness.
- Long-Term Holding: Suitable for investors seeking exposure to railway infrastructure financing. Monitor debt levels and profitability trends closely.
✅ Positive
- Steady PAT growth (₹1,802 Cr. vs ₹1,777 Cr.).
- ROE at 12.8% is decent.
- Dividend yield of 2.14% provides steady income.
- FII (+0.01%) and DII (+0.06%) holdings increased slightly.
⚠️ Limitation
- High debt-to-equity ratio (2.73).
- ROCE (5.83%) reflects weak capital efficiency.
- PEG ratio (8.29) indicates expensive valuation relative to growth.
📉 Company Negative News
- Stock trading below DMA 50 & DMA 200, showing bearish technical trend.
- RSI at 35.0 indicates weak momentum.
- Stock corrected from high of ₹149 to current ₹98.2.
📈 Company Positive News
- Quarterly PAT growth of 10.5% shows steady momentum.
- Dividend yield of 2.14% supports investor returns.
- Institutional inflows (FII & DII) show marginal confidence.
🏦 Industry
- Industry PE at 18.0 highlights sector trades at similar multiples to IRFC.
- Railway financing sector growth supported by government infrastructure spending and modernization projects.
🔎 Conclusion
- IRFC shows moderate fundamentals with decent ROE but weak ROCE and high debt levels.
- Entry around ₹95–105 is favorable for long-term investors.
- Hold for exposure to railway financing growth, but monitor debt levels and profitability consistency closely.