Indian Railway Finance Corp. Ltd. (IRFC) AI Stock Analysis

• Market Cap: ₹1.63T
• Dividend Yield: 1.85%
• Average Volume (3M): 996.04K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.87
• Revenue Growth: 2.06%
• EPS Growth: 3.45%
• Country: IN
• Employees: 42
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 1.34
• Shares Outstanding: 13,068,506,000
• 10 Day Avg. Volume: 700,301
• 30 Day Avg. Volume: 996,043
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹136.00
• Price Target Upside: 9.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹136.00 ▲(9.24% Upside)

Indian Railway Finance Corp. Ltd. shows strong financial performance with high profitability and effective cash flow management. However, technical indicators reveal bearish momentum, and valuation metrics indicate the stock could be overvalued. These factors combined suggest a cautious approach is warranted.

Indian Railway Finance Corp. Ltd. Business Overview & Revenue Model

Company Description

Indian Railway Finance Corporation Ltd. (IRFC) is a government-owned financial institution in India, primarily engaged in raising funds for the Indian Railways. As a dedicated financing arm of the Indian Railways, IRFC is tasked with managing the borrowing program and financing the acquisition of assets such as rolling stock and infrastructure development. The company operates within the financial services sector, providing financial products and services that support the expansion and modernization of India's rail infrastructure.

How the Company Makes Money

IRFC generates revenue primarily through the leasing of railway assets to the Indian Railways. It raises funds from domestic and international markets via financial instruments like bonds and debentures, which are then used to finance the acquisition of rolling stock and other railway infrastructure. The Indian Railways pays lease rentals to IRFC, forming the core revenue stream for the corporation. Additionally, IRFC may earn interest income from its investments in various financial instruments. The company's earnings are significantly influenced by its access to low-cost, long-term financing and its strategic role in supporting the Indian Railways' capital expenditure projects.

Indian Railway Finance Corp. Ltd. Financial Statement Overview

Summary

Indian Railway Finance Corp. Ltd. exhibits strong financial health with high profitability and efficient cash flow management. While leverage is high, it aligns with industry norms, and the company effectively utilizes its equity to generate returns. Monitoring revenue growth and cash flow consistency will be crucial for sustaining long-term success.

Income Statement

Indian Railway Finance Corp. Ltd. has demonstrated strong revenue and profit growth. The net profit margin and EBIT margin are robust, reflecting efficient cost management. However, the revenue growth rate has shown fluctuations over the years, which might be an area to monitor for future stability.

Balance Sheet

The company maintains a high debt-to-equity ratio, typical for the industry, but indicative of significant leverage. Return on equity is notably strong, suggesting effective use of equity capital. The equity ratio is moderate, highlighting a balance between debt and equity financing.

Cash Flow

The cash flow statements reveal a solid operating cash flow to net income ratio, indicating good cash generation relative to profits. Free cash flow growth has been positive recently, marking an improvement. However, past periods of negative free cash flow should be considered a potential risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	222.88B	271.52B	65.72B	236.51B	202.80B	157.51B
Gross Profit	68.16B	66.61B	65.72B	64.31B	117.06B	105.32B
EBITDA	67.78B	66.34B	121.44B	236.00B	201.78B	156.32B
Net Income	66.71B	65.02B	64.12B	61.67B	60.90B	44.16B
Balance Sheet
Total Assets	4.81T	4.89T	4.85T	4.91T	4.50T	3.80T
Cash, Cash Equivalents and Short-Term Investments	6.41B	61.43B	6.00B	6.74B	8.92B	6.80B
Total Debt	4.05T	4.12T	4.12T	4.19T	3.88T	3.23T
Total Liabilities	4.26T	4.36T	4.36T	4.46T	4.09T	3.45T
Stockholders Equity	544.24B	526.68B	491.79B	446.80B	409.96B	359.13B
Cash Flow
Free Cash Flow	50.02B	82.29B	79.06B	-285.85B	-644.19B	-899.08B
Operating Cash Flow	50.03B	82.30B	79.14B	-285.84B	-644.12B	-899.07B
Investing Cash Flow	-5.55M	-1.00M	-75.40M	910.00K	-47.19M	4.23M
Financing Cash Flow	-49.07B	-25.72B	-80.46B	286.43B	642.66B	902.02B

Indian Railway Finance Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRFC, the sentiment is Negative. The current price of 124.5 is below the 20-day moving average (MA) of 129.57, below the 50-day MA of 135.16, and below the 200-day MA of 135.92, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 34.63 is Neutral, neither overbought nor oversold. The STOCH value of 13.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRFC.

Indian Railway Finance Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RECLTD	69 Neutral	₹1.00T	5.96		5.01%	20.32%	15.42%
PFC	68 Neutral	₹1.37T	5.65		4.39%	14.06%	17.29%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
IRFC	65 Neutral	₹1.63T	24.39		1.85%	2.06%	3.45%
BAJAJHFL	57 Neutral	₹938.64B	40.81		―	―	―
LICHSGFIN	46 Neutral	₹312.90B	5.69		1.58%	4.57%	15.87%
IFCI	46 Neutral	₹142.23B	43.38		―	-4.18%	109.86%

Indian Railway Finance Corp. Ltd. Corporate Events

IRFC Releases Conference Call Recording for Investor Insights

Indian Railway Finance Corporation Limited has announced that a conference call with analysts and investors was held on April 29, 2025, to discuss the company’s post-results performance. The audio recording of this call has been made available online, providing stakeholders with insights into the company’s financial results and strategic direction. This move reflects IRFC’s commitment to transparency and effective communication with its investors, potentially impacting its market perception positively.