Multibagger Alert: Government Owned Railway Finance Giant Announces Second Interim for FY25

With a PE ratio of 23.7x, the company trades at a premium compared to the industry PE of 18.6x. The company has ROCE of 5.13 per cent and ROE of 13.7 per cent.  

The Indian Railway Finance Corporation Limited, a Government of India enterprise, has announced the declaration of a second interim dividend of Rs 0.80 per equity share of Rs 10 for the financial year 2024-25. The Board of Directors approved the dividend during their meeting on 17th March 2025. Shareholders eligible for this dividend will be determined based on records dated 21st March 2025. The dividend will be distributed within 30 days of its declaration. Shareholders are advised to update their details with the company's Registrar and Transfer Agent by the record date to ensure accurate tax deductions. Any excess tax deducted can be claimed during the income tax return filing. The company has emphasized that no claims for tax deductions will be entertained post the record date.

Incorporated in 1986, Indian Railway Finance Corporation (IRFC) is a key financial arm of the Indian Railways, primarily focused on borrowing funds from financial markets to finance asset acquisition and creation. These assets are then leased to Indian Railways under finance lease agreements. As a multibagger stock, IRFC has delivered a significant 3-year return of 413.97 per cent, showcasing its potential for substantial growth. As of 17th March 2025, the company's stock is priced at Rs 118.75, with a market capitalization of Rs 1,53,816.32 crores. The stock's 52-week range has seen a high of Rs 217.35 and a low of Rs 111.15, and it maintains a Price-Earnings ratio of 23.53. The company has been maintaining a healthy dividend payout of 30.8 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 6,763.43 crore, reflecting a YoY growth of 0.40 per cent and a QoQ decline of 1.97 per cent from Rs 6,899.66 crore in Sep-24. The net profit for Dec-24 was Rs 1,630.66 crore, showing a YoY increase of 1.98 per cent and a QoQ rise of 1.12 per cent from Rs 1,612.65 crore in Sep-24. The net profit margin for Dec-24 was 24.11 per cent, compared to 23.37 per cent in Sep-24 and 23.73 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 26,645.47 crore, reflecting a growth of 12.32 per cent from Rs 23,722.09 crore in FY23. The net profit for FY24 was Rs 6,537.45 crore, registering a growth of 4.49 per cent from Rs 6,401.70 crore in FY23. The net profit margin for FY24 stood at 24.03 per cent compared to 25.83 per cent in FY23.

As of December 2024, the shareholding pattern remains largely unchanged. Promoters hold 86.36 per cent, FIIs hold 1.01 per cent, DIIs hold 1.24 per cent, and the public holds 11.40 per cent.

With a PE ratio of 23.7x, the company trades at a premium compared to the industry PE of 18.6x. The company has ROCE of 5.13 per cent and ROE of 13.7 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.