Analyzing IRFC’s financial fundamentals, quarterly results, and other key metrics to provide a detailed prediction of IRFC share price target 2029 for each month.
Indian Railway Finance Corporation (IRFC) has been a significant player in the financial markets, particularly noted for its impressive growth over recent years.
Investors and analysts alike are keen to understand the future trajectory of IRFC, especially as we look forward to 2029.
Also, check- IRFC Share Price Target 2028
Predicting IRFC’s Share Price Target 2029
Based on the provided data and trends, we can predict IRFC’s share price for 2029.
Given the historical growth rates and financial stability, we expect the stock to continue its upward trajectory, albeit at a moderated pace due to market saturation and increased competition.
Monthly IRFC Share Price Target 2029
- January 2029: ₹275
- February 2029: ₹278
- March 2029: ₹280
- April 2029: ₹285
- May 2029: ₹290
- June 2029: ₹295
- July 2029: ₹300
- August 2029: ₹305
- September 2029: ₹310
- October 2029: ₹315
- November 2029: ₹320
- December 2029: ₹325
Financial Fundamentals
Understanding the financial fundamentals of IRFC is crucial for predicting its future performance. Below are some key metrics:
- Market Capitalization: ₹2,37,259 Crore
- Current Price: Click here
- 52-Week High/Low: ₹229 / ₹49.6
- Stock P/E Ratio: 36.8
- Book Value: ₹38.8
- Dividend Yield: 0.82%
- Return on Capital Employed (ROCE): 5.73%
- Return on Equity (ROE): 13.7%
- Face Value: ₹10.0
These metrics reflect a stable and well-capitalized company with a strong return on equity, although its P/E ratio suggests that the stock may be somewhat overvalued relative to its earnings.
The dividend yield, though modest, indicates that IRFC provides some income to its shareholders.
Quarterly Performance Analysis
To get a clearer picture of IRFC’s financial health, let’s examine its quarterly results:
| Quarter | Sales (₹ Crores) | Operating Profit (₹ Crores) | Net Profit (₹ Crores) | EPS (₹) |
|---|---|---|---|---|
| Jun 2021 | 4,582 | 4,578 | 1,502 | 1.15 |
| Sep 2021 | 4,690 | 4,662 | 1,501 | 1.15 |
| Dec 2021 | 5,096 | 5,087 | 1,594 | 1.22 |
| Mar 2022 | 5,932 | 5,849 | 1,492 | 1.14 |
| Jun 2022 | 5,627 | 5,605 | 1,662 | 1.27 |
| Sep 2022 | 5,810 | 5,776 | 1,714 | 1.31 |
| Dec 2022 | 6,218 | 6,188 | 1,633 | 1.25 |
| Mar 2023 | 6,194 | 6,147 | 1,285 | 0.98 |
| Jun 2023 | 6,679 | 6,650 | 1,557 | 1.19 |
| Sep 2023 | 6,767 | 6,733 | 1,550 | 1.19 |
| Dec 2023 | 6,737 | 6,701 | 1,599 | 1.22 |
| Mar 2024 | 6,474 | 6,439 | 1,717 | 1.31 |
| Jun 2024 | 6,766 | 6,733 | 1,577 | 1.21 |
IRFC’s quarterly results show consistent revenue growth, with sales rising from ₹4,582 Crores in June 2021 to ₹6,766 Crores in June 2024.
Despite fluctuations in operating profit margins, the company has maintained a solid profit before tax, with negligible tax expenses.
The consistent EPS figures suggest that IRFC is generating stable earnings per share, contributing to its long-term growth.
Profit & Loss Overview
A glance at the Profit & Loss statement over the past decade shows how IRFC has evolved:
| Year | Sales (₹ Crores) | Operating Profit (₹ Crores) | Net Profit (₹ Crores) | EPS (₹) |
|---|---|---|---|---|
| Mar 2013 | 5,550 | 5,528 | 522 | 221.76 |
| Mar 2014 | 6,197 | 6,178 | 701 | 209.04 |
| Mar 2015 | 6,939 | 6,905 | 758 | 211.58 |
| Mar 2016 | 7,507 | 7,468 | 849 | 187.50 |
| Mar 2017 | 9,047 | 9,021 | 934 | 143.08 |
| Mar 2018 | 9,267 | 9,229 | 2,055 | 3.15 |
| Mar 2019 | 11,134 | 11,085 | 2,255 | 2.40 |
| Mar 2020 | 13,421 | 13,355 | 3,192 | 2.69 |
| Mar 2021 | 15,771 | 15,657 | 4,416 | 3.38 |
| Mar 2022 | 20,299 | 20,177 | 6,090 | 4.66 |
| Mar 2023 | 23,722 | 23,588 | 6,167 | 4.72 |
| Mar 2024 | 26,645 | 26,513 | 6,412 | 4.91 |
| TTM | 26,742 | 26,606 | 6,443 | 4.93 |
The growth in sales from ₹5,550 Crores in 2013 to ₹26,742 Crores in the trailing twelve months (TTM) of 2024 underscores IRFC’s expansion.
Despite rising expenses and interest payments, the company has managed to keep its operating profit margins near 100%, reflecting its efficiency.
Shareholding Pattern
Analyzing the shareholding pattern provides insights into who controls the company and how investor sentiment has shifted over time:
| Quarter | Promoters (%) | FIIs (%) | DIIs (%) | Public (%) |
|---|---|---|---|---|
| Sep 2021 | 86.36% | 1.06% | 3.18% | 9.40% |
| Dec 2021 | 86.36% | 1.09% | 3.20% | 9.34% |
| Mar 2022 | 86.36% | 1.12% | 3.18% | 9.33% |
| Jun 2022 | 86.36% | 1.02% | 3.25% | 9.36% |
| Sep 2022 | 86.36% | 1.05% | 3.39% | 9.19% |
| Dec 2022 | 86.36% | 1.01% | 2.97% | 9.66% |
| Mar 2023 | 86.36% | 1.15% | 2.62% | 9.87% |
| Jun 2023 | 86.36% | 1.14% | 2.02% | 10.49% |
| Sep 2023 | 86.36% | 1.14% | 1.63% | 10.88% |
| Dec 2023 | 86.36% | 1.15% | 1.15% | 11.34% |
| Mar 2024 | 86.36% | 1.08% | 0.89% | 11.68% |
| Jun 2024 | 86.36% | 1.11% | 1.08% | 11.45% |
The consistent 86.36% promoter holding indicates strong confidence from the founding stakeholders.
The gradual increase in public shareholding, from 9.40% in September 2021 to 11.45% in June 2024, suggests growing retail interest in the stock, which could drive further price appreciation.
Conclusion
IRFC has proven itself to be a reliable and profitable investment, backed by strong financial fundamentals and consistent growth.
While the stock may face some challenges due to market dynamics, its strong promoter backing and robust financial performance suggest that it is well-positioned for continued growth.
Investors can expect a steady appreciation in IRFC share price target 2029, making it a promising candidate for long-term investment.
However, as with any investment, it is essential to stay informed about market conditions and company performance to make well-timed investment decisions.