Indian Railway Finance Corporation (IRFC) is a government-owned company that provides financial assistance to Indian Railways. It is the only company that can raise funds for Indian Railways in the capital market. IRFC has been in operation since 1986 and has a good track record of financial performance.
The IRFC share price has been on a downward trend in recent years. However, there are a number of factors that suggest that the share price could start to rise in the future. These factors include:
The government’s commitment to investing in infrastructure, including railways.
The growing demand for railway transportation in India.
The increasing competition in the railway finance market, which could drive down interest rates.
Based on these factors, I believe that the IRFC share price could reach the following targets in the next few years:
2022: ₹25
2023: ₹30
2024: ₹35
2025: ₹40
2026: ₹45
Of course, there are always risks associated with investing in any stock. However, I believe that the IRFC share price is undervalued at its current level and that it has the potential to generate significant returns for investors in the long term.
Here are some of the risks associated with investing in IRFC shares:
The government could change its policy and allow Indian Railways to raise funds from other sources. This would reduce IRFC’s monopoly and could lead to a decline in its financial performance.
Indian Railways could be privatized in the future. This would reduce the government’s involvement in the railway sector and could lead to a decline in IRFC’s business.
The railway industry could face financial difficulties. This could lead to a decline in demand for IRFC’s services and could result in a loss of revenue for the company.
Despite these risks, I believe that IRFC is a good investment for long-term investors. The company has a strong track record of financial performance and is well-positioned to benefit from the government’s investment in infrastructure.
