IRFC Share Price Target 2023, 2024, 2025, and 2030

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  • Post last modified:22/02/2023

IRFC share price target 2023, 2024, 2025, and 2030: IRFC 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.

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IRFC Business

The main objective of the company is to meet the predominant portion of the ‘Extra Budgetary Resources (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. Its aim is to be one of the leading Financial Service Companies in the country, for raising funds from the capital market at a competitive cost for augmenting railway plan finances, duly ensuring that the Corporation makes optimum profits from its operations.

The Company’s principal business, therefore, is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways.

IRFC’s constant endeavor has been to diversify its borrowing portfolio in terms of instruments, markets, and investors which has led to the Company meeting the targeted borrowings year after year, through the issue of both taxable and tax-free bonds, a term loan from banks/financial institutions besides offshore borrowings, at competitive market rate.

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IRFC Share Holding Pattern

IRFC share price target 2022, 2023, 2024, 2025, and 2030

Profit After Tax

IEX share price target 2022, 2023, 2024, 2025, and 2030

IRFC Share Price Target 2023

The Indian Railway is a departmental undertaking of the Government of India, which owns and operates most of India’s rail transport. The Indian Railways has the fourth largest railway system in the world, after the US, Russia, and China. Recently, private participation in rail projects is being encouraged and the government has approved ‘participative models for rail connectivity and capacity augmented projects, allowing private ownership of certain segments of railways.

The government has announced two key initiatives, the operation of passenger trains by private players and the redevelopment of railway stations across the country. According to Indian Railways, these projects have the potential of attracting investments worth over US$ 7.5 billion in the next five years.

To boost rail infrastructure and make the Indian Railways network future-ready, Indian Railways has identified 56 projects across the country, in various zones, to be completed by FY 21 and FY 22. Under the Union Budget 2021-22, the government allocated Rs 1,10,054.64 crore to the Ministry of Railways.

Indian manufacturers, under the ‘Atmanirbhar Bharat’ initiative, are being urged to build capacities to support the development of the country’s first high-speed rail corridor connecting Ahmedabad and Mumbai.

As part of the National Rail Plan 2030, Indian Railways is expected to create a future-ready railway system by 2030 to bring down logistics cost and as per Vision 2024 part of National Rail Plan 2030, ensure 100% electrification of broad gauge rail routes by 2024. IRFC share price target for 2023 is Rs 35.

IRFC share price target 2023
Rs 35

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IRFC Share Price Target 2024

IRFC finances the acquisition of rolling stock assets along with providing funds for building infrastructure for Railways. The primary objective of IRFC is to meet the Extra Budgetary Resources (EBR) of the Indian Railways through market borrowings at the most competitive rates.

IRFC is consistently supporting the growth, expansion, and modernization of Indian Railways through funding of railway projects and capacity enhancement works.

IRFC is also a trusted lender for other entities in the Railway sector, including Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited (KRCL), IRCON, Railtel, etc. IRFC is constantly diversifying its borrowing portfolio to adequately support the endeavors of Indian Railways, year after year. By considering all the abovementioned factors, IRFC share price target for 2024 is Rs 41.

IRFC share price target 2024
Rs 41

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IRFC Share Price Target 2025

The benefit of equity infusion, from time to time, by the Government of India, has greatly helped IRFC to achieve sustainable growth. The company also raises funds from investors comprising banks and financial institutions, pension funds, provident fund trusts, insurance companies, sovereign funds, corporates, the public (including high net worth individuals, retail investors, and non-resident investors), trusts, and mutual funds.

IRFC has displayed constant growth in core metrics of funding and profitability. The cost-plus-based Standard Lease Agreement with the MoR enables the company to maintain margins over the weighted average cost of incremental borrowing, determined by the MoR, in consultation with IRFC, at the end of each fiscal.

Typically, the weighted average cost of incremental borrowing factors in expenses incurred by IRFC, with respect to foreign currency hedging and/ or losses (and gains, if any) as well as any hedging costs for interest rate fluctuations.

Simultaneously, IRFC follows the cost-plus pricing model for financing other Railway PSU entities, which typically provides a relatively higher margin. In addition, IRFC believes its low overhead and administrative costs and high operational efficiency have resulted in increased profitability. IRFC share price target for 2025 is Rs 49.

IRFC share price target 2025
Rs 49

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IRFC Share Price Target 2030

IRFC manages cash flows through an active asset-liability management strategy. It helps to minimize asset-liability mismatches. The long-term borrowings are aligned to the prolonged tenure of the assets funded by IRFC. It not only helps to manage liquidity but also meets the growing demands of Indian Railways.

To ensure adequate funding reserves, the company maintains enough funds to meet operational and statutory requirements. Further, if the company fails to procure sufficient funds for redeeming bonds or repaying term loans due to inadequate cash flow, under the Standard Lease Agreement, the MoR must provide for such shortfall through bullet payments, prior to the maturity of bonds or term loans.

Such payments are adjusted in the subsequent lease rentals payable under respective Standard Lease Agreements. As IRFC follows a very strategic way to ensure the funds, IRFC has very good quality management. IRFC share price target for 2030 is Rs 98.

IRFC share price target 2030
Rs 98

IRFC Share Price Target 2023, 2024, 2025, and 2030

YearIRFC Share Price Target
IRFC share price target 2023Rs 35
IRFC share price target 2024Rs 41
IRFC share price target 2025Rs 49
IRFC share price target 2030Rs 98

Experienced Management

To successfully run a company, the first important thing is quality management. The in-depth knowledge and the experience of IRFC’s senior management have enabled the company to ensure the consistency of its business plans by streamlining operational procedures. It is the strength of its management and the perseverance of its people that has allowed IRFC to sustain business growth over the years.

IRFC senior management and executive team are qualified to efficiently handle the nuances of corporate lending and structured finance and law, due to their extensive working experience in renowned government agencies, leading commercial banks, and financial institutions.

Frequently Asked Questions

Is IRFC share good for long term?

No, the IRFC business model is not that good, and there are a lot of other companies in the stock market better than IRFC. Find some good stocks other than IRFC for the long term.

Is IRFC a good buy?

No, IRFC share price will move slowly, it is tempting for beginners in the stock market to buy low-priced stocks or penny stocks. But there are a lot of other penny stocks better than IRFC, if you want to invest your hard-earned money then invest in some other good companies for better returns.

Can IRFC be multi-bagger?

No, the IRFC business model is not that good, and only new-age businesses and future-proof businesses will only give multi-bagger returns, IRFC doesn’t belong to any of the categories. There is no way that IRFC can become a multi-bagger.

Should I sell or hold IRFC shares?

Sell all of your IRFC shares and invest your hard-earned money in some other good companies for better returns.

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