IRFC Share Price: The share price of Indian Railway Finance Corporation Ltd (IRFC) has experienced a significant drop, falling from ₹153.70 to ₹132.95 as of February 12, 2024, compared to its trading value at the beginning of February, which stood at ₹169.90. This abrupt decline of more than 13.50% within a week has left investors wondering about the reasons behind it. Before moving forward lets have a look at the IRFC fundamentals.
IRFC Fundamentals
1) Market Capitalization and Shareholding
As of the latest available data, IRFC’s market capitalization stands at ₹2,00,863 crore. The company’s shareholding structure reveals that promoters held 86.36% of shares until December 23, with foreign institutions owning 1.15%, a slight increase from the previous period. The company’s Price-to-Earnings (P/E) ratio is 33.13, slightly higher than its competitors. IRFC boasts a Return on Equity (ROE) of 12.51% and an Earnings Per Share (EPS) of 4.64%. Additionally, its Debt-to-Equity ratio of 8.54% falls within the industry’s norm.
2) Profit Performance
Reviewing IRFC’s profits over the past four quarters, the company earned ₹1328 crore in March 2023, ₹1557 crore in June 2023, ₹1550 crore in September 2023, and ₹1604 crore in December 2023. While profits surged notably in June and September, there was a slight dip in December.
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3) IRFC Net Worth in Last 5 Years
Examining IRFC’s net worth over the last five years, there has been consistent growth:
| Year | Net Worth (in crores) |
|---|---|
| 2023 | ₹45470 |
| 2022 | ₹40996 |
| 2021 | ₹35913 |
| 2019 | ₹30300 |
| 2018 | ₹25029 |
Reasons for the Share Price Decline
The recent drop in IRFC’s share price can be attributed to profit-taking by investors who bought the shares when they were trading above their perceived value. As these investors sought to capitalize on their gains, selling pressure intensified, leading to a significant downturn in the share price. However, it’s crucial to note that such market movements are often temporary, and the fundamentals of the company remain strong.
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