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Fundamentals for Indian Railway Finance Corporation Limited
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Fundamentals for Indian Railway Finance Corporation Limited
Business Operations:
Sector: Financial ServicesIndustry: Credit Services
Indian Railway Finance Corporation Limited engages in leasing of rolling stock assets, railway infrastructure assets in India. The company is involved in lending business; and borrowing funds from the financial markets to finance the acquisition/creation of assets that are leased out to the Indian Railways. It also operates as a non-deposit taking non-banking financial and infrastructure finance company. The company was incorporated in 1986 and is based in New Delhi, India.
Revenue projections:
Indian Railway Finance Corporation Limited's revenue is forecasted to be roughly the same as last year's, suggesting a neutral financial position. This steady performance may reflect financial stability, but it lacks the excitement of potential growth, leaving investors with a balanced perspective.
Financial Ratios:
| currentRatio | 18.265000 |
|---|---|
| forwardPE | 12.565754 |
| debtToEquity | 773.347000 |
| earningsGrowth | 0.000000 |
| revenueGrowth | 0.005000 |
| grossMargins | 1.000000 |
| operatingMargins | 0.962750 |
| trailingEps | 5.360000 |
| forwardEps | 7.300000 |
The current ratio for IRFC is 18.265, indicating that the company can service its short-term debt using available cash and assets. This suggests IRFC has strong liquidity, with more than enough resources to meet its immediate financial commitments.
IRFC's Forward PE ratio suggests the stock price is reasonable in relation to earnings. It's not overpriced, providing room for future growth, making the stock a potentially valuable investment for those seeking long-term gains.
Indian Railway Finance Corporation Limited's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
With positive gross and operating margins, IRFC demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.
IRFC's forward EPS exceeds its trailing EPS, indicating that the company is projected to be more profitable in the current financial year compared to the previous one. This suggests positive growth and improved earnings, signaling an optimistic outlook for IRFC's financial performance.
Price projections:
Surpassing the higher limit of projections, IRFC's stock price reflects significant gains. Yet, the restricted potential for further rises indicates that the stock may need to consolidate, possibly leading to increased volatility in the short term.
Recommendation changes over time:
Analysts have recently shown a sell bias for Indian Railway Finance Corporation Limited, signaling a need for caution. Investors should not rely solely on this sentiment but instead consider a variety of market indicators to make more informed decisions about the stock's future prospects and potential risks.
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