Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: 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:

Revenue projections for IRFC
Revenue projections for IRFC

IRFC's revenues are forecasted to stay consistent with the previous year's, offering a neutral outlook. This could indicate stability in the company's performance, but it may not attract investors seeking growth opportunities, given the lack of significant change.

Financial Ratios:

currentRatio 13.56100
forwardPE 18.48116
debtToEquity 748.58400
earningsGrowth 0.10700
revenueGrowth 0.10700
grossMargins 1.00000
operatingMargins 0.97647
trailingEps 5.11000
forwardEps 5.10000

With a current ratio 13.561, Indian Railway Finance Corporation Limited demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
IRFC's Forward PE is in a favorable range, meaning its stock price compares well with its earnings and isn't overpriced. This leaves room for growth, making it a compelling opportunity for investors looking to benefit from potential future gains.
Indian Railway Finance Corporation Limited's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
IRFC's positive earnings and revenue growth signal the company's business is on track for further expansion. These strong financial trends suggest that IRFC will continue to grow its operations, driven by increasing profits and revenue.
Indian Railway Finance Corporation Limited's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
IRFC's forward EPS falling below its trailing EPS suggests the company is expected to be less profitable this year. This signals a potential decline in earnings, which may raise concerns about IRFC's financial future.

Price projections:

Price projections for IRFC
Price projections for IRFC

IRFC's price projections have been revised higher over time, reflecting increased confidence in the company's future potential. This steady upward trend suggests analysts expect IRFC to continue its positive trajectory.

IRFC's price has risen above the higher end of expected projections, demonstrating impressive growth. Nevertheless, the lack of room for additional increases may indicate that the stock is entering a consolidation phase, which could limit short-term upside potential.

Recommendation changes over time:

Recommendations trend for IRFC
Recommendations trend for IRFC


A recent sell bias for IRFC from analysts suggests caution for investors. However, decisions should be grounded in a diverse set of market indicators, ensuring that a wider perspective is considered before making any moves regarding the stock's performance and potential risks.