Check Before You Invest : IFCI Ltd

Q: Which industry/sub-sector does IFCI Ltd belong to?

IFCI Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q: Is IFCI Ltd a good quality company?

IFCI Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is IFCI Ltd undervalued or overvalued?

IFCI Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 317.94, Historic Median: -. Price to Book, Current: 9.2, Historic Median: 8.25. Price to Sales, Current: 19.48, Historic Median: 12.64. EV to EBITDA, Current: 23.78, Historic Median: 12.80

Q: Is IFCI Ltd a good buy now?

IFCI Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of IFCI Ltd?

IFCI Ltd Operating Income growth is -19% for FY-2025, which is above its 5-year CAGR of -21.23%, indicating faster growth.

Q: Return on Assets of IFCI Ltd?

IFCI Ltd Return on Asset is 0.5%, which is above its 5-year historical median of -4%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 6.44, Historic Median: -38.67. PPOP (%), Current: -26.67, Historic Median: -86.87. RoA (%), Current: 0.5, Historic Median: -4

Q: Return on Equity (ROE) of IFCI Ltd?

IFCI Ltd Return on Equity is 3.6% for FY-2025, which is above its 5-year historical median of -64.4%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of IFCI Ltd?

IFCI Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -26.67% for FY-2025, which is above its 5-year median(-86.87%), indicating increasing margins.

Q: Net Profit Margin of IFCI Ltd?

IFCI Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 6.44% for FY-2025, which is above its 5-year median( -38.67%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

IFCI Ltd return on invested capital (ROIC) is 6.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

Check Before You Invest : IFCI Ltd

BSE: 500106 NSE: IFCI ISIN: INE039A01010

| Sector: BFSI | Industry: Finance Term Lending

Snapshot

Q.1 Which industry/sub-sector does IFCI Ltd belong to?

IFCI Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is IFCI Ltd a good quality company?

IFCI Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is IFCI Ltd undervalued or overvalued?

IFCI Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	317.94	-
Price to Book	9.2	8.25
Price to Sales	19.48	12.64
EV to EBITDA	23.78	12.80

Q.4 Is IFCI Ltd a good buy now?

IFCI Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of IFCI Ltd?

IFCI Ltd Operating Income growth is -19% for FY-2025, which is above its 5-year CAGR of -21.23%, indicating faster growth.

Q.2 Return on Assets of IFCI Ltd?

IFCI Ltd Return on Asset is 0.5%, which is above its 5-year historical median of -4%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	6.44	-38.67
PPOP (%)	-26.67	-86.87
RoA (%)	0.5	-4

Q.3 Return on Equity (ROE) of IFCI Ltd?

IFCI Ltd Return on Equity is 3.6% for FY-2025, which is above its 5-year historical median of -64.4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of IFCI Ltd?

IFCI Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -26.67% for FY-2025, which is above its 5-year median(-86.87%), indicating increasing margins.

Q.5 Net Profit Margin of IFCI Ltd?

IFCI Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 6.44% for FY-2025, which is above its 5-year median( -38.67%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

IFCI Ltd return on invested capital (ROIC) is 6.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of IFCI Ltd?

IFCI Ltd Total Asset growth is -3.26% for FY-2025, which is above its 5-year CAGR of -12.59%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of IFCI Ltd?

IFCI Ltd Capital Adequacy ratio (CAR) is -23.04% for FY-2025, which is below the regulatory requirement of 15%, indicating adequate capital position.

Ownership & governance

D: Promoter shareholding and pledge status of IFCI Ltd?

Q.1 Promoter shareholding and pledge status of IFCI Ltd?

Promoters hold 72.57% of the IFCI Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does IFCI Ltd performance compare with that of its Peers?

Q.1 AUM Growth of IFCI Ltd vs Industry Peers?

IFCI Ltd AUM CAGR is -12.59%, compared to the 5-year industry median CAGR of 3.91%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of IFCI Ltd vs industry peers

IFCI Ltd profit metrics are below the industry median level of 3.09%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	6.44	4.47
PPOP (%)	-26.67	3.91
RoA (%)	0.5	0.9

Q.3 Operating efficiency of IFCI Ltd vs industry peers?

IFCI Ltd ROCE (6.4) is in line with the industry median of (6.4); while the current ROE (-64.4) are below than the 5-year average Industry ROE (1.4). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	6.44	4.47
PPOP (%)	-26.67	3.91
RoA (%)	0.5	0.9
ROCE (%)	14.9	6.4
ROE (%)	3.6	1.4

Valuation & price assessment

Q.1 Stock return of IFCI Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 10% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10%	40.2%	74.5%	22.2%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	317.94	-	13.42
Price to Book	9.2	8.25	1.13
Price to Sales	19.48	12.64	4.78
EV to EBITDA	23.78	12.80	10.31

Q.3 Valuation ratios of IFCI Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 9.2 is higher than its historical median of 8.25, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : IFCI Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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