As of January 31, 2024, the Industrial Finance Corporation of India (IFCI) share price closed at ₹61, marking a gain of over 104% in just 15 days. Over the preceding three months, it exhibited an impressive surge of more than 160%, and in the last year, it experienced a remarkable growth of over 503%, ascending from ₹9.05 in March 2023 to ₹61.
However, despite this recent uptrend, it’s essential to note that over the past four years, starting from its low of ₹3.10 in March 2020 to January 12, 2024, IFCI has demonstrated substantial growth, exceeding 2000%.
In this article, we delve into a comprehensive analysis of IFCI Ltd share price targets for the years 2024, 2025, 2026, 2027, 2030, 2040, and 2050. Our examination spans various perspectives, including financial metrics, fundamental analysis, technical analysis, and more.
Table of Contents
About IFCI Ltd
IFCI is a public non banking finance company established in 1948 to cater the financial needs of industrial sector. The company financing sector covers a various kind of projects like airport, real estate, road, power etc. Successful involvement in mega projects like Adani Mundra Ports, GMR Goa International Airport, Salasar Highways, NRSS Transmission, Raichur Power Corporation, among others.
| Founded | 1 July 1948 |
| Symbol | IFCI |
| Listed On | not available |
| Owner | Govt. Of India |
| CEO | Emandi Sankara Rao |
| Sector | Finance |
| Headquarters | New Delhi |
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Financial Details
IFCI, a prominent financial institution, currently commands a Market Cap of ₹ 15,172 Cr., reflecting its standing in the market. The Stock P/E, indicative of the market’s confidence in the company’s future prospects, is not specified.
The Return on Capital Employed (ROCE) stands at 5.38%, demonstrating the efficiency with which the company utilizes its capital for generating profits.
However, the Return on Equity (ROE) is reported at -3.78%, suggesting a challenge in translating shareholder equity into positive returns.
The Debt to Equity Ratio is at 1.53, indicating a moderate level of financial leverage. The company carries a total debt of ₹5,746 Cr.
Foreign Institutional Investors (FII) hold a 1.87% stake, while Domestic Institutional Investors (DII) hold 2.01%.
The Earnings Per Share (EPS) is reported at ₹-0.92, signifying a negative per-share profit. On a positive note, the company has achieved a Sales Growth of 17.0%, showcasing its ability to expand its revenue base.
| Market Cap | ₹ 15,172 Cr | Stock P/E | |
| ROCE | 5.38% | ROE | -3.78 % |
| Debt to equity | 1.53 | Debt | ₹5,746Cr. |
| FII Holding | 1.87 % | DII Holding | 2.01 % |
| EPS | ₹ -0.92 | Sales growth | 17.0 % |
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Financial Statement
Reviewing the financial performance as of January 31, 2024, provides valuable insights into the company’s trajectory. In the fiscal year 2023, Net Sales amounted to ₹1,490 crores, showing a marginal decrease from the previous year’s figure of ₹1,556 crores. The year 2021 had witnessed a significant dip in Net Sales, recording ₹2,082 crores, compared to the more robust performances of ₹2,880 crores in 2020 and ₹2,821 crores in 2019.
Examining the corresponding Expenses incurred during these periods reveals notable trends. In 2023, Expenses were significantly lower at ₹776 crores, a substantial reduction from the previous year’s figure of ₹2,108 crores. The peak in Expenses occurred in 2021, amounting to ₹2,961 crores, contributing to a substantial impact on the Profit After Tax.
Speaking of Profit After Tax, the company faced financial challenges in recent years, evident in the negative figures: -₹120 crores in 2023, -₹1,761 crores in 2022, -₹1,912 crores in 2021, and -₹223 crores in 2020. The year 2019 marked a deviation with a Profit After Tax of -₹476 crores.
These financial figures reflect the company’s ongoing efforts to navigate a challenging economic landscape and underscore the importance of strategic financial management moving forward.
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Net Sales | 1,490 | 1,556 | 2,082 | 2,880 | 2,821 |
| Expenses | 776 | 2,108 | 2,961 | 1,463 | 1,962 |
| Profit After Tax | -120 | -1,761 | -1,912 | -223 | -476 |
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Table of IFCI Ltd Share Price Target
Analyzing the company’s projected performance over the next few years reveals a clear trajectory in terms of minimum and maximum price targets.
| Year | Min Target | Max Target |
|---|---|---|
| 2024 | ₹71 | ₹86 |
| 2025 | ₹95 | ₹104 |
| 2026 | ₹108 | ₹117 |
| 2027 | ₹120 | ₹135 |
| 2030 | ₹209 | ₹248 |
| 2040 | ₹420 | ₹458 |
| 2050 | ₹1260 | ₹1328 |
IFCI Ltd Share Price Target for 2024:
- Minimum Target: ₹71
- Maximum Target: ₹86
In the upcoming year, the company is anticipated to maintain a price range between ₹71 and ₹86.
IFCI Ltd Share Price Target for 2025:
- Minimum Target: ₹95
- Maximum Target: ₹104
Moving into 2025, the projected price range widens, reaching between ₹95 and ₹104.
IFCI Ltd Share Price Target for 2026:
- Minimum Target: ₹108
- Maximum Target: ₹117
Further into the future, specifically in 2026, the anticipated price range expands to ₹108 to ₹117.
IFCI Ltd Share Price Target for 2027:
- Minimum Target: ₹120
- Maximum Target: ₹135
By 2027, the company’s share price is expected to aim for a range of ₹120 to ₹135.
IFCI Ltd Share Price Target for 2030:
- Minimum Target: ₹209
- Maximum Target: ₹248
Looking ahead to 2030, the minimum and maximum targets extend to ₹209 and ₹248, respectively.
IFCI Ltd Share Price Target for 2040:
- Minimum Target: ₹420
- Maximum Target: ₹458
In the long term, by 2040, the company is anticipated to potentially reach a price range between ₹420 and ₹458.
IFCI Ltd Share Price Target for 2050:
- Minimum Target: ₹1260
- Maximum Target: ₹1328
Projected into 2050, the minimum and maximum targets suggest a potential price range of ₹1260 to ₹1328.
Positive and Negative Points of IFCI Ltd
Positive
- The company has gained more than 900% in fast four years without reporting any profits.
Negative
- Poor sales growth over last five years
- Poor sales growth over last three years.
- Poor return on equity at -3.78%.
- Poor Return on capital employed at 5.38%
Conclusion Buy Or Not
When considering an entry into the market, it’s advisable to exercise caution and wait for a potential pullback. An opportune entry point could be within the range of ₹24 to ₹26. This range is deemed favorable for establishing a position, providing a potential entry window with a reasonable risk-reward profile.
To manage risk, it is recommended to allocate a small portion of your portfolio, such as 0.1%, for this specific investment. This cautious approach allows you to closely monitor the performance of the asset without exposing a significant portion of your portfolio to potential fluctuations.
Disclaimer
Investing in stock market is risky and subject to the market condition. This article provides an examination of the company for educational purposes only. We are not SEBI( Stock exchange board of India) registered advisors, and this is not an investment advice. We do not provide tips or calls.. Before making any investment decisions, please conduct your own research or consult a qualified financial advisor.
FAQs
What are the minimum and maximum share price targets for IFCI Ltd in 2025?
The minimum target for 2025 is ₹34, and the maximum target is ₹36.
What are the anticipated share price targets for IFCI Ltd in 2026?
The minimum target for 2026 is ₹40, and the maximum target is ₹43.
What are the minimum and maximum share price targets for IFCI Ltd in 2027?
In 2027, the minimum target is ₹49, and the maximum target is ₹52.
What are the minimum and maximum share price targets for IFCI Ltd in 2030?
Looking ahead to 2030, the minimum and maximum targets extend to ₹63 and ₹67, respectively.
