IFCI, which can stand for several things, typically refers to the Industrial Finance Corporation of India. It is a development finance institution under the ownership of the Ministry of Finance, Government of India. Established in 1948 as a statutory corporation, IFCI is currently a company listed on BSE and NSE. It provides financial support for the diversified growth of Industries across the spectrum. The financing activities cover various kinds of projects such as airports, roads, telecom, power, real estate, manufacturing, services sector and such other allied industries.
IFCI Overview
Full Name: Industrial Finance Corporation of India
Type: Development finance institution (DFI)
Founded: 1948
Headquarters: New Delhi, India
Website: https://www.ifciltd.com/
Ownership: Government of India, Ministry of Finance
Services:
- Project finance: Long-term funding for large-scale industrial projects across various sectors (infrastructure, power, telecom, etc.)
- Corporate finance: Equity, debt, and hybrid instruments for mergers, acquisitions, and expansions.
- Infrastructure finance: Funding for various infrastructure projects like roads, airports, and renewable energy.
- Micro, small and medium enterprise (MSME) finance: Financial support for small businesses through various schemes and products.
- Structured products: Customized financial solutions tailored to specific client needs.
- Financial advisory services: Guidance on capital raising, project structuring, and financial strategies.
Key facts:
- Listed on both BSE and NSE stock exchanges.
- Plays a crucial role in financing industrial growth and development in India.
- Offers a wide range of financial products and services to cater to diverse needs.
- Actively involved in promoting sustainable development and social impact initiatives.
IFCI Products
IFCI caters to a wide spectrum of clients across different sectors through its diverse range of financial products. Here’s a breakdown of their key offerings:
Corporate Finance:
- Balance Sheet Funding: Long-term loans for capital expenditure, working capital, and other business needs.
- Loan Against Shares (LAS): Short-term financing using listed shares as collateral.
- Lease Rental Discounting: Monetizing future lease rentals upfront for immediate liquidity.
- Promoter Funding: Financial support for promoters to meet equity contribution requirements.
- Short Term Loan (STL): Working capital funding with a maturity of up to 1 year.
Project Finance:
- Long-term financing: Structured debt solutions for large-scale infrastructure and industrial projects.
- Project advisory services: Expertise in feasibility studies, financial modeling, and project structuring.
Infrastructure Finance:
- Financing for various infrastructure projects: Roads, bridges, airports, ports, power plants, renewable energy, etc.
- Public-private partnership (PPP) expertise: Structuring and financing PPP projects for infrastructure development.
Micro, Small and Medium Enterprise (MSME) Finance:
- Schemes and products tailored to MSMEs: Term loans, working capital finance, and growth capital.
- Credit guarantee schemes: Reducing risk for lenders and facilitating access to finance for MSMEs.
Structured Products:
- Customized financial solutions: Mezzanine financing, quasi-equity, and other hybrid instruments.
- Addressing specific client needs: Acquisitions, pre-IPO financing, and balance sheet restructuring.
Other Products:
- Debenture Trusteeship: Acting as a trustee for corporate bond issuances.
- Financial Advisory Services: Guidance on raising capital, managing finances, and achieving business goals.
IFCI Fundamentals
- Market Cap: ₹13,585.80 Crore (as of February 20, 2024)
- Share Price: ₹52.61 (as of February 20, 2024)
- Revenue: ₹534.10 Crore (TTM)
- Profit/Loss: ₹-287.58 Crore (TTM) (Loss-making)
- Profitability Ratios:
- Return on Equity (ROE): -100.73% (Negative, indicating losses)
- Return on Assets (ROA): -1.60% (Negative, indicating losses)
- Net Profit Margin: -14.73% (Negative, indicating losses)
- Liquidity Ratios:
- Current Ratio: 0.87 (Below 1, indicating potential short-term liquidity concerns)
- Quick Ratio: 0.56 (Below 1, indicating potential short-term liquidity concerns)
- Solvency Ratios:
- Debt-to-Equity Ratio: 2.16 (High, indicating significant debt burden)
- Interest Coverage Ratio: -0.22 (Negative, indicating inability to cover interest expenses with operating income)
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IFCI Revenue and Net Profit
Here’s a breakdown of IFCI’s revenue and net profit, considering different timeframes:
Latest Quarter (Q3 FY24, ended December 2023):
- Revenue: ₹469.90 Crore (YoY increase of 33.89%)
- Net Profit: ₹17.91 Crore (YoY decrease of 80.58%)
Latest Financial Year (FY23):
- Revenue: ₹6,120.3 Crore (YoY increase of 44.23%)
- Net Loss: ₹-437.8 Crore (YoY decrease from net profit of ₹124.2 Crore)
TTM (Trailing Twelve Months):
- Revenue: ₹534.10 Crore
- Net Loss: ₹-287.58 Crore
IFCI Shareholding Patterns
Promoter:
- Holding: 70.32%
- Locked-in Shares: 100%
Other Shareholders:
- Foreign Institutional Investors (FIIs): 2.08%
- Domestic Institutional Investors (DIIs): 6.04%
- Mutual Funds: 0.03%
- Individual Investors: 21.53%
IFCI Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | IFCI Share Price Target |
|---|---|
| 2025 | 99 |
| 2026 | 149 |
| 2027 | 199 |
| 2028 | 249 |
| 2029 | 299 |
IFCI Share Price Target for 2025
IFCI Share Price Target for 2025 is 99.
IFCI Share Price Target for 2026
IFCI Share Price Target for 2026 is 149.
IFCI Share Price Target for 2027
IFCI Share Price Target for 2027 is 199.
IFCI Share Price Target for 2028
IFCI Share Price Target for 2028 is 249.
IFCI Share Price Target for 2029
IFCI Share Price Target for 2029 is 299.
IFCI Dividend History
IFCI’s dividend history has been inconsistent in recent years. Here’s a breakdown:
Recent Dividend:
- Date: February 12, 2016
- Amount: ₹1 per share
- Dividend Yield: 6.96% (at the time)
Past Dividends:
- September 11, 2015: ₹0.5 per share
- March 2, 2015: ₹1 per share
- August 13, 2014: ₹1 per share
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Future Outlook of IFCI
The future outlook of IFCI is quite uncertain and depends on several factors. Here’s an overview of the key points to consider:
Current Challenges:
- Financial Performance: IFCI has incurred significant losses in recent years, raising concerns about its profitability and sustainability.
- High Debt Burden: The company has a high debt-to-equity ratio, limiting its ability to invest and grow.
- Government Support: The future of IFCI’s government support and potential restructuring plans is unclear.
- Regulatory Landscape: Changes in regulations and industry dynamics could impact its operations.
Risks Associated With Investing in IFCI
Financial Performance:
- Losses and Weak Profitability: IFCI has incurred significant losses in recent years, raising concerns about its ability to generate shareholder value.
- High Debt Burden: The company has a high debt-to-equity ratio, which limits its ability to invest and grow, and also increases vulnerability to economic downturns.
Uncertainty and Restructuring:
- Uncertain Future of Government Support: While IFCI is a government-owned entity, the future level of support and potential restructuring plans remain unclear. This adds to the overall uncertainty surrounding the company’s future.
- Regulatory Landscape: Changes in regulations and industry dynamics could significantly impact IFCI’s operations and profitability.
Other Risks:
- Liquidity Concerns: IFCI’s current ratio and quick ratio are below 1, indicating potential short-term liquidity challenges.
- Management Effectiveness: The company’s ability to overcome its challenges and turnaround its financial performance depends heavily on effective management strategies.
- Competition: IFCI faces competition from other financial institutions and may struggle to compete effectively in the market.
IFCI Competitors
IFCI operates in a competitive landscape with numerous players across various segments of its business. Here’s a breakdown of some key competitors without images:
Project Finance:
- Power Finance Corporation (PFC): Focuses on power sector financing, similar to IFCI’s infrastructure division.
- Rural Electrification Corporation Limited (REC): Finances rural electrification projects, competing with IFCI in specific areas.
- Infrastructure Development Finance Company Limited (IDFC): Offers project finance across various infrastructure sectors, including transportation and energy.
Corporate Finance:
- Bajaj Finserv: Provides a wide range of financial services to corporates, including loans, equity investments, and advisory services.
- ICICI Bank: Offers corporate banking solutions, competing with IFCI for loan and other financing needs.
- Axis Bank: Another major private sector bank offering comprehensive corporate banking services.
MSME Finance:
- Small Industries Development Bank of India (SIDBI): A specialized institution dedicated to MSME financing, posing significant competition.
- National Bank for Agriculture and Rural Development (NABARD): Provides financial support to rural and agricultural businesses, including MSMEs.
- Micro Units Development & Refinance Agency (Mudra): Offers refinance facilities to microfinance institutions serving MSMEs.
Structured Products:
- HSBC India: Offers specialized financial solutions for corporates, including structured products.
- Standard Chartered Bank: Provides various structured products and financing solutions to clients.
- Axis Bank: Also active in the structured products market, competing with IFCI.
Debenture Trusteeship:
- Axis Trustee Services: A major player in debenture trusteeship services, posing competition to IFCI.
- KFin Technologies: Another leading provider of debenture trusteeship services in India.
- ICICI Securities: Offers various financial services, including debenture trusteeship.
Financial Advisory Services:
- EY India: Provides a wide range of financial advisory services to various industries.
- Deloitte India: Offers advisory services in areas like mergers & acquisitions, restructuring, and capital markets.
- KPMG India: Provides financial advisory services across various sectors, including infrastructure and corporate finance.
IFCI Share Price FAQs
What is the current IFCI share price?
As of today, February 20, 2024, the closing price of IFCI shares was ₹52.61. However, the share price fluctuates throughout the trading day, so it’s best to check live quotes for the most recent price.
2. Why has the IFCI share price increased recently?
There are several possible reasons for the recent increase in IFCI’s share price:
- Overall market rally: The Indian stock market has been performing well in recent months, which could have contributed to the rise in IFCI’s share price.
- Positive news articles: Some positive news articles about IFCI, such as potential government support or new business initiatives, might have attracted investor interest.
- Technical factors: Technical analysis involves studying historical price and volume data to identify potential trends. It’s possible that certain technical indicators signaled a buying opportunity for IFCI.
3. What are the analysts’ price targets for IFCI?
Analyst price targets for IFCI vary depending on the firm and their methodology. It’s crucial to remember that these are just estimates and the actual share price could be higher or lower.
4. Should I invest in IFCI?
This is a decision you should make after thorough research and careful consideration of your own financial situation and risk tolerance. Remember, IFCI has faced financial challenges in recent years, including losses and high debt burden. While there are potential opportunities, it’s vital to weigh the risks before investing.
