Indian Infotech share price target 2023, 2024, 2025, and 2030: In this article, you will learn about Indian Infotech share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Indian Infotech share price target 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Indian Infotech: Company Profile
Indian Infotech And Software Limited was incorporated as ‘Indian Leasers Limited’ on May 22, 1982. Subsequently, the name of the Company was changed to ‘Indian Infotech And Software Limited on July 20, 1998. The Company is a Non-Banking Financial Company (Registration No. B-13.00221) registered with the Reserve Bank of India and is engaged in the business of financing & investment And training on computer technology and its related activities. The Equity Shares of the Company are listed in Bombay Stock Exchange Limited (BSE) and Ahemadabad Stock Exchange Limited (ASE).
The company is engaged in the business of financing & investment and training on computer technology and its related activities.
Share Holding Pattern
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Indian Infotech Share Price Target 2023
The NBFC sector saw a largely stable outlook for major NBFCs. From the perspective of larger financial systems, scheduled commercial banks continued to be a dominant player accounting for nearly 47% of the bilateral exposure followed by Asset Management Companies managing mutual funds, NBFCs, Insurance Companies, Housing Finance Companies, and All India Financial Institutions.
For several years, NBFCs have rapidly emerged as an important segment of the Indian Financial System. The sector is now being recognized as complementary to the banking sector due to the implementation of innovative marketing strategies, the introduction of tailor-made products, customer-oriented services, attractive rates of return on deposits and simplified procedures.
NBFCs in India have recorded marked growth in recent years. After their existence, they are useful and successful in the evolution of a vibrant, competitive, and dynamic financial system in the Indian money market. The success factors of their business have been by making the most of their ability to contain risk, adapt to changes, and tap demand in markets that are likely to be avoided by the bigger players. Thus the need for uniform practices and a level playing field for NBFCs in India is indispensable. Indian Infotech share price target for 2023 is Rs 5.5.
| Indian Infotech share price target 2023 |
| Rs 5.5 |
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Indian Infotech Share Price Target 2024
Over the past few years, NBFCs have undergone a significant transformation and today they form an important component of India’s financial system. Playing a critical role in the development of infrastructure, transport, and employment generation, NBFCs are changing the business loan landscape in the country. Most NBFCs, leverage alternative and tech-driven credit appraisal methodologies to assess the creditworthiness of prospective borrowers.
This difference in approach allows them to meet loan requirements of individuals and businesses left traditionally underserved by banks. With the introduction of e-KYC, making borrowing an instant and hassle-free experience, NBFCs are already offering the right financial products to consumers and small businesses in a customized manner. The use of technology to optimize business processes also keeps cost overheads to a minimum, enabling credit to be availed at highly competitive interest rates.
Initiatives launched by the RBI to support NBFCs
| Measures | RBI Guidelines | Impact |
|---|---|---|
| Increasing exposure limit | The RBI increased the counterparty exposure limit of banks to a single NBFC to 20% of Tier-I capital from 15% | While the measure was intended to encourage banks to lend more to NBFCs, banks have been largely cautious and have refrained from making the best use of higher limits. Many banks are still below the former limit. |
| Priority sector classification | Loans given by banks to NBFCs for lending to agriculture, micro, and small enterprises, and housing to be classified as Priority Sector Lending (PSL) | The measure has benefited some of the larger NBFCs and specialized NBFCs. However, it has not directly addressed the refinancing challenges of the NBFC sector |
| Partial credit guarantee | GOI has created a mechanism whereby it will provide partial credit guarantees to banks for the purchase of NBFC assets, amounting to Rs. 1 trillion during 2019-20. The guarantee will be provided on a one-time basis for six months for a public sector bank’s first loss of up to 10%. | The measure is in the initial stages of implementation. Market participants are confident that the guarantee is adequate to cover typical losses. This could help some of the large and mid-sized NBFCs with their liquidity needs for about six months. |
| Co-origination model | The RBI released guidelines on co-origination of loans by banks and non-deposit-taking NBFCs in the priority sector. NBFCs must take a minimum exposure of 20% with the remaining contribution by the participating bank | There are obvious benefits from this arrangement in terms of liquidity support, especially for struggling NBFCs. The NBFCs are also likely to benefit from the risk-sharing model and will be able to target a new customer base. |
| Securitization | The RBI guidelines on securitization allow NBFCs to securities their loans with an original maturity of more than 5 years. | NBFCs would benefit from the liquidity generated by the securitization of assets to address problems arising from asset-liability mismatch. |
By considering all the above-mentioned factors, Indian Infotech share price target for 2024 is Rs 9.
| Indian Infotech share price target 2024 |
| Rs 9 |
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Indian Infotech Share Price Target 2025
Opportunities:
- Increasing the penetration in the Micro, Small, and Medium Enterprise (MSME) segment with new and dynamic operating models.
- Synergistic alliances with fintech companies to tap niche markets.
- Accessingnewcustomersandcheaperfundingsourcesbydevelopingaviableco-lending business model.
- Tapping into the fast-growing e-commerce segment.
- Diversifying assets by targeting new profitable segments and developing the capabilities required to serve those segments.
- Increasing fee income through advisory services.
- Using digital competencies and tools to improve sales productivity – the use of advanced analytics and machine learning to build propensity models for lead generation, making real-time offers available to sales representatives by using customer data from multiple internal and external sources.
Indian Infotech share price target for 2025 is Rs 17.
| Indian Infotech share price target 2025 |
| Rs 17 |
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Indian Infotech Share Price Target 2030
Government Initiatives:
- In January 2021, the Central Board of Direct Taxes launched an automated e-portal on the e-filing website of the department to process and receive complaints of tax evasion, foreign undisclosed assets, and register complaints against ‘Benami’ properties.
- In December 2020, the Reserve Bank of India issued a draft circular on the declaration of dividends by NBFCs, wherein it proposed that NBFCs should have at least a 15% Capital to Risk-Weighted Assets Ratio (CRAR) for the last 3 years, including the accounting year for which it proposes to declare a dividend.
- In November 2020, the Union Cabinet approved the government’s equity infusion plan for Rs. 6,000 crores (US$ 814.54 million) in the NIIF Debt Platform funded by the National Investment and Infrastructure Fund (NIIF) consisting of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF) (NIIF-IFL).
- In November 2020, two MoUs were signed—one between India International Exchange (India INX) and Luxembourg Stock Exchange and another between State Bank of India and Luxembourg Stock Exchange for cooperation in financial services, ESG (environmental, social, and governance), and green finance in the local market.
The growth of the company’s asset book, quality of assets, and ability to raise funds depend significantly on the economy. Unfavorable events in the Indian economy can affect consumer sentiments and in turn impact consumer decisions to purchase financial products. Competition from a broad range of financial service providers, an unstable political environment, and changes in government policies/regulatory framework could impact the company’s operations.
There are several large and profitable opportunities for NBFCs and the sector plays an important role in the Indian financial system. The key is for the NBFC sector to grow in a prudential manner while focusing on financial innovation and having in place, adequate risk management systems and procedures before entering into risky areas. The regulator constantly endeavors to balance the multiple objectives of financial stability, consumer and depositor protection, and regulatory arbitrage concerns. By considering all these factors, Indian Infotech share price target for 2030 is Rs 52.
| Indian Infotech share price target 2030 |
| Rs 52 |
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Indian Infotech Share Price Target 2023, 2024, 2025, and 2030
| Year | Share Price Target |
|---|---|
| Indian Infotech share price target 2023 | Rs 5.5 |
| Indian Infotech share price target 2024 | Rs 9 |
| Indian Infotech share price target 2025 | Rs 17 |
| Indian Infotech share price target 2030 | Rs 52 |
Frequently Asked Questions
Is Indian Infotech a good buy?
No, the company has a poor ROE (Return on Equity) track record: 3 Years’ ROE -2.18%. The company has delivered poor profit growth of -331.86% over the past 3 years. The company has delivered poor Income growth of 1.43% over the past 3 years. The company has been maintaining a poor ROCE of -1.79% for the last 3 years. The company has been maintaining a poor Dividend Payout ratio of 0% for the last 3 years.
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