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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

IFCI Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:10 pm

Market Cap 15,101 Cr.
Current Price 57.8
High / Low91.4/23.6
Stock P/E104
Book Value 22.4
Dividend Yield0.00 %
ROCE10.2 %
ROE2.48 %
Face Value 10.0
PEG Ratio54.04

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for IFCI Ltd

Competitors of IFCI Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tourism Finance Corporation of India Ltd 1,349 Cr. 146268/10713.6 1261.72 %10.5 %8.65 % 10.0
Power Finance Corporation Ltd (PFC) 1,50,056 Cr. 455580/3097.08 3332.97 %9.85 %21.3 % 10.0
IFCI Ltd 15,101 Cr. 57.891.4/23.6104 22.40.00 %10.2 %2.48 % 10.0
Housing & Urban Development Corporation Ltd (HUDCO) 40,446 Cr. 202354/80.216.4 85.52.05 %9.23 %13.2 % 10.0
Industry Average51,738.00 Cr215.2035.27141.731.69%9.95%11.41%10.00

All Competitor Stocks of IFCI Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6116392351274444311413348414320607454
Expenses1,168399997665315131345-3447418290-74230
Operating Profit-557-393-605-314-41313-34447300-430681224
OPM %-91%-6,172%-154%-89%-15%70%-11%108%86%-1%9%112%49%
Other Income-1128191055123124514
Interest286264260248234201168162150162144145146
Depreciation17191816151817182118182121
Profit before tax-861-663-874-560-27999-214279134-172-12852071
Tax %17%-28%21%21%-145%130%8%25%18%-40%-1%66%45%
Net Profit-718-849-692-445-685-30-197209109-241-12917439
EPS in Rs-3.84-4.51-3.44-2.37-3.46-0.14-0.990.780.42-1.16-0.560.390.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,0913,1573,6023,8644,4653,5824,3222,8212,8802,0821,5561,4901,795
Expenses1485081,0671,0101,5091,8501,7141,9621,4632,9612,108776864
Operating Profit2,9432,6492,5342,8542,9561,7332,6088591,417-879-553714931
OPM %95%84%70%74%66%48%60%30%49%-42%-36%48%52%
Other Income4031408216899383112114392835
Interest1,9561,9191,7622,1732,5992,3802,1441,8031,4511,147943642597
Depreciation222551-11246163638172667478
Profit before tax1,005737762775501-609439-696-94-2,085-1,52326290
Tax %32%33%26%28%24%47%5%32%-137%8%-16%559%
Net Profit688497566575394-308418-476-223-1,912-1,761-120-157
EPS in Rs9.322.993.413.232.18-2.272.26-2.88-1.36-10.24-8.71-0.95-1.26
Dividend Payout %11%33%29%46%46%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-27.76%13.88%1.59%-31.48%-178.17%235.71%-213.88%53.15%-757.40%7.90%93.19%
Change in YoY Net Profit Growth (%)0.00%41.64%-12.29%-33.07%-146.69%413.89%-449.59%267.03%-810.55%765.30%85.29%

IFCI Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-6%
5 Years:-7%
3 Years:-2%
TTM:22%
Compounded Profit Growth
10 Years:-16%
5 Years:17%
3 Years:27%
TTM:180%
Stock Price CAGR
10 Years:4%
5 Years:52%
3 Years:65%
1 Year:134%
Return on Equity
10 Years:-7%
5 Years:-19%
3 Years:-17%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1,6611,6611,6621,6621,6621,6961,6961,6961,8962,1032,1962,4902,614
Reserves5,1175,4045,5615,6395,2084,1933,6613,5531,8427151,5712,0453,248
Borrowings19,13421,79726,76728,59823,91920,66516,39412,56611,0417,0956,0205,3675,064
Other Liabilities1,6972,1502,9803,2473,4934,2444,2914,6235,5855,5747,1529,0169,603
Total Liabilities27,60931,01336,97039,14634,28230,79826,04222,43920,36415,48716,93918,91820,528
Fixed Assets1,4731,9341,9351,8601,8231,7211,7011,7201,7621,7411,7641,7341,726
CWIP19946321491611131
Investments8,0156,4016,3306,8605,1507,3635,5803,9635,5046,5417,7008,67811,022
Other Assets18,10122,66828,70030,42027,30621,71218,76016,75213,0897,1907,4648,4937,779
Total Assets27,60931,01336,97039,14634,28230,79826,04222,43920,36415,48716,93918,91820,528

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-651874263-5802-972444635-438-257-33612
Cash from Investing Activity +-57-176777-8195-23-33-103-30-59-155
Cash from Financing Activity +838-201-409-316-2943-23419619373465404
Net Cash Flow130498-138-245765-734186798-348-21370261

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow2.00-17.00-19.00-24.00-26.00-22.00-18.00843.00-11.00-890.00-560.00708.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days16310078615912232434575156
Inventory Days
Days Payable
Cash Conversion Cycle16310078615912232434575156
Working Capital Days73-101-35-68-83-159-203-225-399-467-619-657
ROCE %10%9%9%8%5%9%4%6%-5%-4%5%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters63.81%63.81%64.86%64.86%64.86%66.35%66.35%70.32%70.32%70.32%70.32%71.72%
FIIs2.50%2.53%2.38%2.04%1.90%1.99%2.00%1.51%1.87%2.08%2.29%2.40%
DIIs9.03%8.67%8.13%7.68%2.39%2.29%2.29%2.00%2.01%2.02%2.03%1.93%
Government0.00%0.00%0.00%0.00%4.99%4.70%4.70%4.13%4.03%4.02%3.99%3.34%
Public24.66%24.99%24.63%25.42%25.87%24.69%24.68%22.03%21.76%21.57%21.37%20.61%
No. of Shareholders5,21,5255,33,2445,53,3025,44,4535,38,5705,24,7235,20,6045,05,9695,41,9375,85,6708,26,0798,76,318

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund701,3120.332.04701,3122024-11-080%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)0.42-0.95-8.71-10.24-1.36
Diluted EPS (Rs.)0.42-0.95-8.71-10.24-1.36
Cash EPS (Rs.)1.29-0.20-8.06-9.70-0.83
Book Value[Excl.RevalReserv]/Share (Rs.)30.8428.5524.0425.4536.13
Book Value[Incl.RevalReserv]/Share (Rs.)30.8428.5524.0425.4536.13
Revenue From Operations / Share (Rs.)7.986.767.3810.9016.93
PBDIT / Share (Rs.)5.623.38-2.44-4.588.50
PBIT / Share (Rs.)5.303.05-2.75-4.968.02
PBT / Share (Rs.)3.020.11-7.24-10.99-0.55
Net Profit / Share (Rs.)0.96-0.54-8.37-10.08-1.32
NP After MI And SOA / Share (Rs.)0.41-0.94-8.71-10.24-1.36
PBDIT Margin (%)70.4650.02-33.03-41.9850.22
PBIT Margin (%)66.3945.04-37.31-45.4847.38
PBT Margin (%)37.791.75-98.13-100.89-3.28
Net Profit Margin (%)12.13-8.06-113.46-92.50-7.77
NP After MI And SOA Margin (%)5.21-13.98-117.98-93.95-8.02
Return on Networth / Equity (%)2.28-6.17-64.98-54.87-4.56
Return on Capital Employeed (%)16.419.71-5.11-6.778.58
Return On Assets (%)0.54-1.22-11.82-9.53-1.02
Long Term Debt / Equity (X)0.000.002.152.451.84
Total Debt / Equity (X)1.181.792.523.122.49
Asset Turnover Ratio (%)0.110.090.050.070.10
Current Ratio (X)1.551.453.002.572.84
Quick Ratio (X)1.551.442.982.562.82
Inventory Turnover Ratio (X)0.040.050.000.000.00
Interest Coverage Ratio (X)2.451.16-0.54-0.750.99
Interest Coverage Ratio (Post Tax) (X)1.420.81-0.86-0.660.84
Enterprise Value (Cr.)13349.427323.619371.4512088.2111754.05
EV / Net Operating Revenue (X)6.724.936.045.854.09
EV / EBITDA (X)9.549.86-18.27-13.938.15
MarketCap / Net Operating Revenue (X)4.981.451.501.100.24
Price / BV (X)2.180.640.820.640.13
Price / Net Operating Revenue (X)4.981.451.501.100.24
EarningsYield0.01-0.09-0.78-0.85-0.33

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IFCI Ltd as of November 15, 2024 is: 58.93

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, IFCI Ltd is Undervalued by 1.96% compared to the current share price 57.80

Intrinsic Value of IFCI Ltd as of November 15, 2024 is: 60.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, IFCI Ltd is Undervalued by 3.91% compared to the current share price 57.80

Last 5 Year EPS CAGR: 1.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.73 and average Dividend Yield of 15.20%.
  2. The stock has a low average Working Capital Days of -245.25, which is a positive sign.
  3. The company has shown consistent growth in sales (2.46 cr) and profit (163.77 cr) over the years.
  1. The stock has a low average ROCE of 5.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 59.83, which may not be favorable.
  3. The company has higher borrowings (15,725.15) compared to reserves (3,673.62), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in IFCI Ltd:
    1. Net Profit Margin: 12.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.41% (Industry Average ROCE: 9.95%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 2.28% (Industry Average ROE: 11.41%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.42
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 104 (Industry average Stock P/E: 35.27)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

IFCI Ltd. is a Public Limited Listed company incorporated on 21/05/1993 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1993GOI053677 and registration number is 053677. Currently Company is involved in the business activities of Other credit granting. Company’s Total Operating Revenue is Rs. 756.94 Cr. and Equity Capital is Rs. 2102.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Term Lending InstitutionsIFCI Tower, 61 Nehru Place New Delhi Delhi 110019complianceofficer@ifciltd.com
http://www.ifciltd.com
Management
NamePosition Held
Mr. Rahul BhaveDeputy Managing Director
Mr. Arvind Kumar JainNon Executive Director
Prof. N BalakrishnanNon Executive Director
Prof. Arvind SahayNon Executive Director
Mr. Surendra BeheraNon Executive Director
Mr. Umesh Kumar GargIndependent Director
Mr. Jitendra AsatiGovernment Director
Mr. Surjith KarthikeyanGovernment Director

FAQ

What is the latest intrinsic value of IFCI Ltd?

The latest intrinsic value of IFCI Ltd as on 15 November 2024 is ₹58.93, which is 1.96% higher than the current market price of ₹57.80.

What is the Market Cap of IFCI Ltd?

The Market Cap of IFCI Ltd is 15,101 Cr..

What is the current Stock Price of IFCI Ltd as on 15 November 2024?

The current stock price of IFCI Ltd as on 15 November 2024 is ₹57.8.

What is the High / Low of IFCI Ltd stocks in FY 2024?

In FY 2024, the High / Low of IFCI Ltd stocks is 91.4/23.6.

What is the Stock P/E of IFCI Ltd?

The Stock P/E of IFCI Ltd is 104.

What is the Book Value of IFCI Ltd?

The Book Value of IFCI Ltd is 22.4.

What is the Dividend Yield of IFCI Ltd?

The Dividend Yield of IFCI Ltd is 0.00 %.

What is the ROCE of IFCI Ltd?

The ROCE of IFCI Ltd is 10.2 %.

What is the ROE of IFCI Ltd?

The ROE of IFCI Ltd is 2.48 %.

What is the Face Value of IFCI Ltd?

The Face Value of IFCI Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in IFCI Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE