Indian Railway Finance Corporation Ltd Stock Analysis

BSE: 543257 | NSE: IRFC | Finance Term Lending | Large Cap

BSE Share Price 31-Jan-2023 18:03
33.05 1.85 (5.93%)

DeciZen - Make an Informed Decision on Indian Railway Finance

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Indian Railway Finance Price Chart

P/E Ratio ( SA) :
6.31
Market Cap :
40,773.7 Cr.
52-wk low :
19.3
52-wk high :
37.1
Bole Toh?

1. Is Indian Railway Finance Corporation Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Indian Railway Finance Corporation Ltd is a average quality company.

2. Is Indian Railway Finance Corporation Ltd undervalued or overvalued?

The key valuation ratios of Indian Railway Finance Corporation Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Indian Railway Finance Corporation Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Indian Railway Finance Corporation Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Indian Railway Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indian Railway Finance Corporation Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Operating Income (₹ Cr.)5,5506,1876,9397,5069,04711,01911,13413,42115,77020,2997,406
YoY Gr. Rt. %-11.5%12.2%8.2%20.5%21.8%1%20.6%17.5%28.7%-
Adj EPS (₹ ) 221.8209211.6187.51.43.12.42.73.44.74.9
YoY Gr. Rt. %--5.7%1.2%-11.4%-99.2%115.4%-22.1%12.1%25.7%37.9%-
BVPS (₹ )2,463.62,186.82,2712,104.418.420.826.725.527.531.433.3
YoY Gr. Rt. %--11.2%3.9%-7.3%-99.1%12.9%28.4%-4.4%7.8%14.2%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)0.80.90.90.90.81.41.21.31.31.50

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income15.5%17.5%22.2%28.7%
Adj EPS-34.9%26.7%24.8%37.9%
BVPS-38.4%11.3%5.6%14.2%
Share Price - - - 41.5%

Key Financial Ratios

RATIOS \ YEARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)9.411.310.911.310.318.220.323.8283087.2
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)9.510.79.89.68.715.711.711.513.315.814.8

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.30%

Total Income has increased 22.17 CAGR in last 3 years

Net Profit has increased 24.76 CAGR in last 3 years

Total income growth is good in last 4 quarters

No data to display

Latest Financials - Indian Railway Finance Corporation Ltd.

Standalone Consolidated
TTM EPS (₹) 4.9 -
TTM Sales (₹ Cr.) 7,406 -
BVPS (₹.) 33.3 -
Reserves (₹ Cr.) 30,481 -
P/BV 0.94 -
PE 6.31 -
From the Market
52 Week Low / High (₹) 19.30 / 37.10
All Time Low / High (₹) 19.30 / 37.10
Market Cap (₹ Cr.) 40,774
Equity (₹ Cr.) 13,068.5
Face Value (₹) 10
Industry PE 4.3

Management X-Ray of Indian Railway Finance :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Indian Railway Finance

Adj EPS (Rs.)
Total Income (Cr.)
ROE (%)
BVPS (Rs.)

News

Indian Railway Finance Corporation Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Indian Railway Finance on 31-Jan-2023 18:03 is : 33.05.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Jan-2023 18:03 the market cap of Indian Railway Finance stood at ₹ 40,773.7.
The latest PE ratio of Indian Railway Finance as of 31-Jan-2023 18:03 is 6.31.
The latest PB ratio of Indian Railway Finance as of 31-Jan-2023 18:03 is 0.94
The 52-week high of Indian Railway Finance is ₹ 37.10 and the 52-week low is ₹ 19.30.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Indian Railway Finance is ₹ 7,406 ( Cr.) .

About Indian Railway Finance Corporation Ltd

The company was incorporated as Indian Railway Finance Corporation Limited on December 12, 1986, as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, National Capital Territory of Delhi & Haryana (RoC). Indian Railway Finance Corporation is wholly-owned by the Government of India acting through the MoR. It is registered with the Reserve Bank of India as a NBFC (Systematically Important) and is classified under the category of an ‘Infrastructure Finance Company’ under Section 45-IA of the Reserve Bank of India Act, 1934. It was notified as a ‘Public Financial Institution’ under the Companies Act, 1956 through a notification dated October 8, 1993 issued by the Ministry of Corporate Affairs.

The company is responsible for raising the finance necessary for such activities. Over the last three decades, it has played a significant role in supporting the capacity enhancement of the Indian Railways by financing a proportion of its annual plan outlay. The company follows a financial leasing model for financing the Rolling Stock Assets. The period of lease with respect to Rolling Stock Assets is typically 30 years comprising a primary period of 15 years followed by a secondary period of 15 years, unless otherwise revised by mutual consent. In terms of the leasing arrangements, the principal amount pertaining to the leased assets is effectively payable during the primary 15 years lease period, along with the weighted average cost of incremental borrowing and a margin determined by the MOR in consultation with it at the end of each Fiscal.

Business area of the company

The company is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement (collectively, “Rolling Stock Assets), leasing of railway infrastructure assets and national projects of the Government of India (collectively, Project Assets) and lending to other entities under the Ministry of Railways, Government of India (MoR). The MoR is responsible for the procurement of Rolling Stock Assets and for the improvement, expansion and maintenance of Project Assets.

Awards and Accreditations

  • 2018: Awarded “Mini Ratna Category I” status.
  • 2019: Awarded “Best Growth Performance-Financial Services” and “Best Miniratna in Services” at the
    PSU Awards 2019, organised by dun & bradstree.

History and Milestones

  • 1988: Commencement of fund raising from the domestic capital market.
  • 1988: Financing the procurement of Rolling Stock Assets by Indian Railways.
  • 1988: Raised loan from Export Import Bank of Japan on behalf of the Ministry of Finance.
  • 1991: Company declared dividend to the GoI.
  • 1993: Declared as a Public Financial Institution under Section 4A of the Companies Act, 1956.
  • 1996: Issue of floating rate notes of USD 70 million in the offshore market.
  • 1996: Public issue of deep discount bonds.
  • 1998: Registered as a NBFC.
  • 1998: Raised term loans from Corporation Bank and Indian Overseas Bank for a tenure of 15 years.
  • 1998: Issue of secured, redeemable, non-cumulative, taxable bonds to Life Insurance Corporation of India for tenure of 15 years.
  • 1999: Issue of secured, redeemable, non-cumulative, taxable bonds in Separately Transferable Redeemable
    Principal Parts (STRPP).
  • 2003: Raised USD 75 million through syndicated foreign currency loan.
  • 2006: Issue of floating rate bonds in the domestic capital market.
  • 2008: Categorized as NBFC-ND-AFC by RBI.
  • 2010: Issuance of secured, redeemable, non-cumulative, taxable bonds for a tenure of 25 years.
  • 2010: Categorized as NBFC-IFC by RBI.
  • 2011: Issue of Euro-Dollar bonds (Regulation S) in the offshore market.
  • 2011: Raised foreign currency term loan from American Family Life Assurance Company of Columbus for a tenure of 15 years.
  • 2012: Raised funds through a public issue of tax - free bonds at a differential coupon rate.
  • 2012: The company entered into a memorandum of understanding dated July 27, 2012 with MoR with respect to the financing of railway infrastructure projects by the company. The MoU sets out the understanding between the parties as regards the leasing by the company to the MoR of the infrastructure assets like railway tracks etc. owned by the company.
  • 2016: Mobilization of Rs 95,000 million through tax free bonds.
  • 2016: Forayed into funding railway projects through institutional finance from LIC.
  • 2018: Central Board of Direct Taxes vide notification dated August 8, 2017 notified that the any bond redeemable after three years issued by the company will be classified as “long-term specified asset” under Section 54EC of the Income-tax Act, 1961.
  • 2018: The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corporation (Singapore branch) sanctioned syndicated loan to the company amounting to JPY equivalent of USD 250 million for a period of 10 years.
  • 2018: Unsecured fixed rate Regulation S green bonds issued by the company amounting to USD 500 million for a period of 10 years.
  • 2019: Set up Euro Medium Term Note (EMTN) Programme for USD 2 billion.
  • 2019: Issuance of Reg S Bonds of USD 500 Million in the EMTN format.
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