Share of Indian Railway Finance Corporation Limited (IRFC) is currently trading at around Rs.76/- Existing as well as prospective investors are asking for the IRFC Target Price from 2023 to 2030,2035 and 2040. In this article, we will discuss about the business prospects and financial performance of IRFC and based on our discussion and analysis, will tell you the IRFC Target Price from 2023 to 2030,2035 and 2040.
Following are the frequently asked questions by the existing as well as prospective investors, about Indian Railway Finance Corporation Limited. In this article, we will answer all the questions frequently asked by the people about the company:
- What is the target of IRFC share price?
- What will be IRFC price in 2023?
- What will IRFC cost in 2025?
- Is IRFC good for long term?
- Can IRFC be a multibagger?
Discussion & Analysis of Business & Financial performance with Future Business Prospects ofIndian Railway Finance Corporation Limited (IRFC):
Future Business Prospects of Indian Railway Finance Corporation Limited (IRFC)
Indian Railway Finance Corporation Limited (IRFC) is a public sector financial institution under the Ministry of Railways, Government of India. It was established in 1986 to mobilize funds from domestic and international markets for financing the acquisition of rolling stock, development of new lines, gauge conversion, and other railway projects.
IRFC plays a vital role in the Indian Railways’ modernization and expansion plans. It has a strong track record of financial performance and has consistently maintained a healthy capital adequacy ratio. The company has also maintained a good credit rating from both domestic and international rating agencies.
Growth Drivers
There are a number of factors that are expected to drive IRFC’s growth in the coming years. These include:
- Government’s focus on railway infrastructure:The Indian government has allocated significant resources for the development of the railway sector. The National Rail Plan 2030 envisages an investment of over Rs 10 lakh crore in the railway sector over the next decade. This is expected to boost demand for IRFC’s financing services.
- Diversification of business:IRFC is diversifying its business beyond financing railway projects. It is now also financing private sector projects with a backward and/or forward linkage with Railways, including high-speed rails, dedicated freight corridors, and logistic parks. This is expected to open up new growth avenues for the company.
- Strong financial performance:IRFC has a strong track record of financial performance. The company has consistently maintained a healthy capital adequacy ratio and a good credit rating. This gives IRFC the financial strength to fund large-scale projects.
Challenges
Despite the strong growth drivers, IRFC faces a few challenges as well. These include:
- Rising interest rates:Rising interest rates could increase IRFC’s borrowing costs and impact its profitability.
- Competition from other financial institutions:IRFC faces competition from other financial institutions, such as banks and NBFCs, for funding railway projects.
- Execution risks:The execution of large-scale railway projects can be challenging due to various factors, such as land acquisition delays, environmental clearances, and cost overruns.
Outlook
Despite the challenges, the outlook for IRFC’s future business prospects is positive. The company is well-positioned to benefit from the Indian government’s focus on railway infrastructure development. IRFC’s diversification of business into private sector projects is also expected to boost its growth. However, the company needs to manage its borrowing costs and execution risks effectively in order to achieve its growth potential.
Specific Opportunities
In addition to the general growth drivers mentioned above, IRFC has a number of specific opportunities in the pipeline. These include:
- Financing the Dedicated Freight Corridors (DFCs):The DFCs are two new high-speed freight corridors that are being constructed to connect the eastern and western parts of India. IRFC is expected to finance a significant portion of the cost of these projects.
- Financing the Bullet Train project:The Bullet Train project is a high-speed rail project that is being constructed between Mumbai and Ahmedabad. IRFC is expected to finance a significant portion of the cost of this project as well.
- Financing the redevelopment of railway stations:The Indian government is planning to redevelop a number of railway stations into world-class facilities. IRFC is expected to finance a significant portion of the cost of these projects as well.
Conclusion
Overall, the future business prospects of Indian Railway Finance Corporation Limited (IRFC) are positive. The company is well-positioned to benefit from the Indian government’s focus on railway infrastructure development. IRFC’s diversification of business into private sector projects is also expected to boost its growth. However, the company needs to manage its borrowing costs and execution risks effectively in order to achieve its growth potential.
In addition to the general growth drivers and specific opportunities mentioned above, IRFC is also expected to benefit from the following factors:
- Growing urbanization:As India urbanizes, the demand for rail travel is expected to increase. This will boost IRFC’s business prospects.
- Increasing trade:India’s trade with other countries is increasing. This is expected to lead to an increase in the demand for freight transportation, which will benefit IRFC.
- Government’s focus on sustainability:The Indian government is focusing on promoting sustainable transportation. This is expected to lead to an increase in the demand for rail travel, which will benefit IRFC.
Overall, IRFC is a well-managed company with a strong track record of financial performance. The company is well-positioned to benefit from the Indian government’s focus on railway infrastructure development and other growth drivers.
Share Price Targets:
IRFC Target Price 2023
Based on the above discussion and analysis, the share price ofIRFCmay touch the level of around Rs.80-100 in 2023.
IRFC Target Price 2024
Based on the above discussion and analysis, the share price ofIRFCis likely to touch the level of around Rs.110-140 in 2024
IRFC Target Price 2025
Based on the above discussion and analysis, the share price ofIRFCis likely to remain in the range of Rs.150-200 in 2025.
IRFC Target Price 2026
Based on the above discussion and analysis, the share price ofIRFCmay touch the level of around Rs.210-240 in 2026.
IRFC Target Price 2027
Based on the above discussion and analysis, the share price ofIRFCis likely to touch the level of around Rs.250-300 in 2027
IRFC Target Price 2028
Based on the above discussion and analysis, the share price ofIRFCis likely to remain in the range of Rs.310-350 in 2028
IRFC Target Price 2029
Based on the above discussion and analysis, the share price ofIRFCis likely to touch the level of around Rs.360-400 in 2029
IRFC Target Price 2030
Based on the above discussion and analysis, the share price ofIRFCis likely to remain in the range of Rs.410-450 in 2030
IRFC Target Price 2035
Based on the above discussion and analysis, the share price ofIRFCis likely to remain in the range of Rs.600-650 in 2035
IRFC Target Price 2040
Based on the above discussion and analysis, the share price ofIRFCis likely to remain in the range of Rs.950-1000 in 2040
Disclaimer: Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general guidance purpose only.We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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RAJEEV GUPTA Rajeev Gupta is a Chartered Accountant with over 35 years experience and is CEO of moneyinsight.in View all posts by
