IRFC - Breakout Opportunity
Zaktualizowano
Indian Railway Finance Corporation (IRFC) is a public-sector undertaking (PSU) under the Ministry of Railways, Government of India. It is primarily engaged in financing the acquisition of rolling stock assets and infrastructure projects of the Indian Railways.
Financial Metrics:
TTM EPS: 4.85
TTM PE: 8.22
Sector PE: 6.23
Book Value Per Share: 34.79
P/B: 1.15
Face Value: 10
Mkt Cap (Rs. Cr.): 52,000 cr
Dividend Yield: 3.76
Positives:
Financial Stability: IRFC is a government-owned entity, which generally indicates a stable financial position due to government backing.
Core Business: IRFC's primary business is financing railway projects, which can be considered essential and backed by the government.
Diverse Product Offering: IRFC may offer various financial products and services tailored for railway projects.
Government Support: Being a PSU, IRFC might receive government support and access to favorable financing terms.
Potential Growth: With the growth of the Indian economy and railway sector, there may be opportunities for IRFC to finance more projects.
Strong Momentum: Price above short, medium and long term moving averages
Effectively using its capital to generate profit - RoCE improving in last 2 years
Increasing Revenue every quarter for the past 3 quarters
Annual Net Profits improving for last 2 years
Book Value per share Improving for last 2 years
Company with Zero Promoter Pledge
Near 52 Week High
Stock gained more than 20% in one month
Negatives:
Exposure to Railways: As IRFC's core business is tied to the railway sector, any downturn or challenges in the railway industry may impact its performance.
Regulatory and Political Risks: Being a government-owned entity, IRFC may be subject to regulatory changes and political influence that could affect its operations.
Interest Rate Risks: IRFC's operations involve borrowing funds and lending to railways; fluctuations in interest rates could impact its profitability.
Asset Quality: The quality of IRFC's loan portfolio, specifically the repayment ability of borrowers, could impact its financial health.
Dependency on Government Funding: IRFC's funding and operations are closely linked to government budget allocations, which might vary from year to year.
MFs decreased their shareholding last quarter
Decline in Net Profit with falling Profit Margin (QoQ)
Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Declining profits every quarter for the past 2 quarters
Declining Net Cash Flow : Companies not able to generate net cash
Conclusion:
IRFC is a government-owned entity involved in financing railway projects, which may have both positive and negative implications. Its financial stability, core business, and potential growth opportunities are positives. However, challenges such as exposure to railway sector risks, regulatory and political factors, and interest rate risks should be carefully considered. Investors should conduct further research, analyze the company's financial statements, and assess market conditions before making any investment decisions. As always, it is essential to seek professional financial advice before investing.
NOT A RECOMMENDATION. JUST FOR EDUCATION PURPOSE. Thanks
Financial Metrics:
TTM EPS: 4.85
TTM PE: 8.22
Sector PE: 6.23
Book Value Per Share: 34.79
P/B: 1.15
Face Value: 10
Mkt Cap (Rs. Cr.): 52,000 cr
Dividend Yield: 3.76
Positives:
Financial Stability: IRFC is a government-owned entity, which generally indicates a stable financial position due to government backing.
Core Business: IRFC's primary business is financing railway projects, which can be considered essential and backed by the government.
Diverse Product Offering: IRFC may offer various financial products and services tailored for railway projects.
Government Support: Being a PSU, IRFC might receive government support and access to favorable financing terms.
Potential Growth: With the growth of the Indian economy and railway sector, there may be opportunities for IRFC to finance more projects.
Strong Momentum: Price above short, medium and long term moving averages
Effectively using its capital to generate profit - RoCE improving in last 2 years
Increasing Revenue every quarter for the past 3 quarters
Annual Net Profits improving for last 2 years
Book Value per share Improving for last 2 years
Company with Zero Promoter Pledge
Near 52 Week High
Stock gained more than 20% in one month
Negatives:
Exposure to Railways: As IRFC's core business is tied to the railway sector, any downturn or challenges in the railway industry may impact its performance.
Regulatory and Political Risks: Being a government-owned entity, IRFC may be subject to regulatory changes and political influence that could affect its operations.
Interest Rate Risks: IRFC's operations involve borrowing funds and lending to railways; fluctuations in interest rates could impact its profitability.
Asset Quality: The quality of IRFC's loan portfolio, specifically the repayment ability of borrowers, could impact its financial health.
Dependency on Government Funding: IRFC's funding and operations are closely linked to government budget allocations, which might vary from year to year.
MFs decreased their shareholding last quarter
Decline in Net Profit with falling Profit Margin (QoQ)
Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Declining profits every quarter for the past 2 quarters
Declining Net Cash Flow : Companies not able to generate net cash
Conclusion:
IRFC is a government-owned entity involved in financing railway projects, which may have both positive and negative implications. Its financial stability, core business, and potential growth opportunities are positives. However, challenges such as exposure to railway sector risks, regulatory and political factors, and interest rate risks should be carefully considered. Investors should conduct further research, analyze the company's financial statements, and assess market conditions before making any investment decisions. As always, it is essential to seek professional financial advice before investing.
NOT A RECOMMENDATION. JUST FOR EDUCATION PURPOSE. Thanks
Zlecenie aktywne
CMP 75. 80% return within 1 month.Uwaga
CMP 160.
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