The Indian Railway Finance Corporation (IRFC) has been a significant player in the Indian public sector, raising financial resources for expanding and operating the country’s railway system. IRFC’s successful initial public offering in 2021 has drawn the attention of many investors, who are now looking at the prospects of the company and its share price.
In this blog post, we will deep dive into the IRFC share price target for 2023, 2024, 2025, to 2030. We will explore the current market trends, the company’s financial performance, and other factors impacting the IRFC share price. Whether you are a beginner or a seasoned investor, this blog post will provide valuable insights into the IRFC share price target. So, let’s dive in and see the Indian Railways Finance Corporation Share price for the future.
About Indian Railway Finance Corporation LTD (IRFC)
The Indian government owns the Indian Railway Finance Corporation (IRFC). Its primary purpose is to raise money for the expansion and operation of the Indian railway system. The government owns most of the company, and the Ministry of Railways controls it. The company raises money by selling financial bonds and borrowing from banks and financial institutions.
In 2021, IRFC became a publicly traded company after it announced its initial public offering (IPO) and got listed on the National Stock Exchange of India and the Bombay Stock Exchange. Amitabh Banerjee leads the current board of directors as Chairman and Managing Director.
Fundamentals of Indian Railway Finance Corporation LTD
As I always say, It is crucial to consider a company’s fundamentals before making a long-term investment.
So, before discussing the IRFC future share price or IRFC share price prediction, it is imperative to analyse the company’s fundamentals thoroughly.
This data was taken on February 12, 2023.
- The Stock P/E ratio is 6.09
- Current Market Price ₹30.1
- Earnings Per Share ₹4.94
- Sales Growth 5 years 17.5%
Based on its financial reports, it is clear that the company has several strengths, which are as follows:
- The stock price is 0.90 times the book value
- The dividend yield is 4.65%
- Profit growth is 45.5% CAGR over the past five years
- Healthy dividend payout of 20.4%
However, Based on its financial reports, it is also clear that the company has several weaknesses, which are as follows:
- Low-interest coverage ratio
- Low tax rate
- Low return on equity of 13.8% over the last three years
- Possibility of the capitalising interest cost
Disclaimer: The information provided is for educational purposes only and is not intended as financial advice. It is crucial to conduct thorough research and consult a financial expert before making investment decisions.
After listing at 24.90₹, IRFC share price faced resistance of 25.80₹ to 26.20₹. And then, a downtrend started in the IRFC share price. After making a low of 19.30₹ Price broke the trendline and took support on the old support level, which was 20.85₹.
Then Price did a successful retest, and boom, a huge move came in IRFC share price. After that, the Indian Railways Finance Corporation share price made a high of 37.10₹. Which was more than 90% move from its low.
The current market price of IRFC shares is 30.15 ₹. The share price appears to be consolidated, with current support levels in the range of 27.50 to 28.35. Now let’s discuss the IRFC share price target for upcoming years.
Disclaimer: Please note that the stock price may not always perform as predicted and that my analysis may not always be accurate. The price predictions and analysis presented are solely my perspective and should not be taken as financial advice. It is essential to conduct thorough research and seek the advice of financial experts before making any investment decisions.
The above images are taken from Tradingview.com
After conducting a thorough analysis of the IRFC Ltd chart on Trading View, utilising multiple time frames, I have come to the following conclusion:
The estimated target for the IRFC share price in 2023 is ₹40.
The estimated target for the IRFC share price in 2024 is ₹55.
The estimated target for the IRFC share price in 2025 is ₹65-70.
The estimated target for the IRFC share price in 2026 is ₹75-80.
The estimated target for IRFC share price in 2027, 2028, 2029, and 2030 is ₹89, ₹99, ₹109, and ₹120, respectively.
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If you’re considering investing in IRFC shares or doing short-term trading, it’s best to wait until a precise upward movement or until a strong positive trend is established. This could happen after a clear break above the current downtrend trendline or when a bullish candle on the support range indicates a highly positive stock buying.
The overall target for IRFC share price till 2030 will be around 120₹ or above. This is only possible if the share price starts to move upside respectively.
Disclaimer: The information provided is for educational purposes only and should not be taken as investment advice. I cannot be held responsible for any profit or loss. It is highly recommended to conduct your research and consider all factors before making any investment decisions in the stock market. The information in this post may be subject to inaccuracies and errors and is subject to change.