Is IPO of Irfc good or bad?

Most brokerages say the IRFC IPO is attractively priced and can be a good bet for conservative long-term investors, given the company’s low-risk profile and consistent earnings visibility. NEW DELHI: The Rs 4,633-crore IPO of Indian Railway Finance Corporation (IRFC) kicked off on Monday.

Is it worth investing in Irfc?

Indian Railway Finance Corporation (IRFC) reported a 15 per cent increase in net profit for the third quarter ended December 31. For the nine months period ended December 31, IRFC reported a 15.65 per cent increase in net profit. IRFC is trading at a price of INR 23.90. This is a dividend-paying company.

Is Irfc shares good for long term?

IRFC is a low risk company, its stocks can give good returns to the investors in the medium term,” he added. It was great for long term investors as it had low investment risk and earning opportunities. However, the company’s return on equity and margin was low, so it was a good investment option for long term.

Is IRFC undervalued?

Considering its financials and prospects, the issue seems to be an undervalued offering. However, if the government or MoR changes its policies regarding IRFC, then its profitability can get affected. “Attractive valuation with healthy return ratios make us optimistic on the long term prospects for IRFC,” it said.

How does IRFC make money?

IRFC gets the money from the market on the basis of Government Guarantee and lends it to Indian Railways for expansion, operational activities and any other purposes. IRFC will keep on earning interest from Indian Railways. Thirdly, financing companies like Banks/NBFCs are valued on basis of price to book value.

Is IRFC giving dividend?

Indian Railway Finance Corporation Ltd. For the year ending March 2021 Indian Railway Finance Corporation has declared an equity dividend of 10.50\% amounting to Rs 1.05 per share. At the current share price of Rs 22.55 this results in a dividend yield of 4.66\%.

How does IRFC work?

IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways.

Will Irfc be a multibagger?

It won’t be a big multibagger for sure. But it is a very safe stock that will surely give much better returns than any Mutual funds. Could expect good dividend and I personally expect it to double in 3-4 years from here. You can keep Rail Vikas as benchmark for it.

Is IRFC a govt company?

IRFC is a Miniratna/Schedule “A” Indian public sector undertaking (PSU)….Indian Railway Finance Corporation.

Will IRFC give dividend?

For the year ending March 2021 Indian Railway Finance Corporation has declared an equity dividend of 10.50\% amounting to Rs 1.05 per share. At the current share price of Rs 22.55 this results in a dividend yield of 4.66\%.

Will IRFC give bonus?

Indian Railway Finance Corporation has not announced any bonus so far.

Is IRFC debt free?

IRFC had total borrowings of ~Rs 245349 crore (including Rs 2548 crore of commercial paper) as on September 30, 2020. As on February 01, 2021, total debt maturing over next 3 months till April 30, 2021 is ~Rs 6,200 crore.

What is the price of IRFC IPO 2021?

The Indian Railway Finance Corporation (IRFC) has announced an IPO to be launched on January 18, 2021 ( Now Live on Groww!). The IPO price band is Rs.25 to Rs.26 per equity share and the lot size is of 576 shares.

Should IRFC invest in the Indian Railways IPO?

There is a high dependence on the Indian Railways through lease and rental payments that have, so far, catered to its reserves. This can make IRFC susceptible to changing dynamics in the business. However given the current status of the finances and credit outlook, subscribing to the IPO may be profitable.

Is IRFC a good investment for You?

According to ICICIdirect.com, as a dedicated finance arm of Indian Railways, IRFC remains a low-risk model with no non-performing asset with a return on equity of 11-12 per cent. Analysts at Anand Rathi Financial Services have also given a ‘subscribe’ rating to IRFC.

What is the intrinsic value of IRFC?

Even if we deduct a margin of safety of 10\%, the intrinsic value of IRFC = Rs.90,570.15 crores As per the IPO structure, the company has a market cap of Rs.4633.37 crores. 4. Risk Factors IRFC derives a significant amount of its revenue from operations from the Indian Railways.