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

Indian Railway Finance Corporation Limited's revenues are forecasted to stay approximately the same as the previous year, suggesting a neutral outlook. This may be seen as stable performance, but without significant growth, it may not generate excitement among investors seeking higher returns.

Financial Ratios:

currentRatio 6.466000
forwardPE 16.624638
debtToEquity 730.143000
earningsGrowth 0.106000
revenueGrowth 0.104000
grossMargins 0.999860
operatingMargins 0.974500
trailingEps 5.240000
forwardEps 5.100000

With a current ratio of 6.466, Indian Railway Finance Corporation Limited has the liquidity needed to easily service its short-term debt. The company's cash reserves and current assets are sufficient, indicating that Indian Railway Finance Corporation Limited is in a strong position to meet its immediate financial obligations without difficulty.
IRFC's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
IRFC's high debt-to-equity ratio shows the company is significantly leveraged, relying heavily on debt financing. This raises the potential for increased financial risk, especially if the company's earnings or cash flow are negatively impacted.
IRFC's positive earnings and revenue growth suggest that the company is poised for business expansion. This financial strength indicates that IRFC is expected to continue growing, with rising profits and sales contributing to its long-term success.
IRFC's positive gross and operating margins highlight its profitability and operational efficiency. These strong margins demonstrate the company's ability to control costs while generating substantial revenue, contributing to a healthy financial performance.
Indian Railway Finance Corporation Limited'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 Indian Railway Finance Corporation Limited's financial future.

Price projections:

Price projections for IRFC
Price projections for IRFC

Price projections for IRFC have been revised upward over time, signaling increasing optimism about the company's future. This steady increase reflects a positive outlook for IRFC's growth and market performance.

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


With analysts leaning toward a sell bias for IRFC, investors should be cautious and make decisions based on a wider set of market indicators. This approach will help balance short-term concerns with longer-term market trends, providing a more holistic view of the stock.