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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of IFCI Ltd

About the Company - IFCI Ltd

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. Manoj MittalManaging Director & CEO
Mr. Arvind Kumar JainDirector
Prof. N BalakrishnanDirector
Prof. Arvind SahayDirector
Dr. Bhushan Kumar SinhaDirector
Mr. Surendra BeheraDirector
Ms. Anindita SinharayDirector

IFCI Ltd. Share Price Update

Share PriceValue
Today₹58.78
Previous Day₹61.87

Basic Stock Data of IFCI Ltd

Market Cap 11,943 Cr.
Current Price 48.0
High / Low71.8/9.00
Stock P/E
Book Value 15.1
Dividend Yield0.00 %
ROCE5.38 %
ROE3.78 %
Face Value 10.0

Data Source: screener.in

Competitors of IFCI Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Power Finance Corporation Ltd (PFC) 1,35,486 Cr. 411478/1127.17 2832.59 %9.08 %20.4 % 10.0
Tourism Finance Corporation of India Ltd 2,088 Cr. 231247/66.821.8 1051.04 %9.46 %8.99 % 10.0
Industry Average1.5 Cr32114.491941.82%9.27%14.7%10

IFCI Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8486116392351274444311413348414320607
Expenses6621,168399997665315131345-3447418290-74
Operating Profit186-557-393-605-314-41313-34447300-430681
OPM %22%-91%-6,172%-154%-89%-15%70%-11%108%86%-1%9%112%
Other Income11-11281910551231245
Interest297286264260248234201168162150162144145
Depreciation18171918161518171821181821
Profit before tax-118-861-663-874-560-27999-214279134-172-128520
Tax %63%17%-28%21%21%-145%130%8%25%18%-40%-1%66%
Net Profit-43-718-849-692-445-685-30-197209109-241-129174
EPS in Rs-0.31-3.84-4.51-3.44-2.37-3.46-0.14-0.990.780.42-1.16-0.560.39

IFCI Ltd Quarterly Chart

IFCI Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,0913,1573,6023,8644,4653,5824,3222,8212,8802,0821,5561,4901,688
Expenses1485081,0671,0101,5091,8501,7141,9621,4632,9612,108776681
Operating Profit2,9432,6492,5342,8542,9561,7332,6088591,417-879-5537141,006
OPM %95%84%70%74%66%48%60%30%49%-42%-36%48%60%
Other Income4031408216899383112114392825
Interest1,9561,9191,7622,1732,5992,3802,1441,8031,4511,147943642601
Depreciation222551-11246163638172667478
Profit before tax1,005737762775501-609439-696-94-2,085-1,52326353
Tax %32%33%26%28%24%47%5%32%-137%8%-16%559%
Net Profit688497566575394-308418-476-223-1,912-1,761-120-87
EPS in Rs9.322.993.413.232.18-2.272.26-2.88-1.36-10.24-8.71-0.95-0.91
Dividend Payout %11%33%29%46%46%-0%-0%-0%-0%-128%-218%-0%

IFCI Ltd 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 Growth

Compounded Sales Growth
10 Years:-7%
5 Years:-19%
3 Years:-20%
TTM:18%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:13%
TTM:-931%
Stock Price CAGR
10 Years:9%
5 Years:33%
3 Years:80%
1 Year:348%
Return on Equity
10 Years:-6%
5 Years:-21%
3 Years:-34%
Last Year:-4%

IFCI Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7381,6611,6611,6621,6621,6621,6961,6961,6961,8962,1032,1962,490
Reserves4,8045,1175,4045,5615,6395,2084,1933,6613,5531,8427151,5711,277
Preference Capital264264264264264264000000
Borrowings22,28918,87021,53326,50328,33423,65520,66516,39412,56611,0417,0956,0205,746
Other Liabilities2,0291,9612,4143,2443,5113,7564,2444,2914,6235,5855,5747,1526,747
Total Liabilities29,86027,60931,01336,97039,14634,28230,79826,04222,43920,36415,48716,93916,260
Fixed Assets1,4711,4731,9341,9351,8601,8231,7211,7011,7201,7621,7411,7641,756
CWIP19199463214916117
Investments7,2088,0156,4016,3306,8605,1507,3635,5803,9635,5046,5417,7008,394
Other Assets21,16218,10122,66828,70030,42027,30621,71218,76016,75213,0897,1907,4646,103
Total Assets29,86027,60931,01336,97039,14634,28230,79826,04222,43920,36415,48716,93916,260

IFCI Ltd Reserves and Borrowings Chart

IFCI Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -76-651874263-5802-972444635-438-257-336
Cash from Investing Activity -28-57-176777-8195-23-33-103-30-59
Cash from Financing Activity -43838-201-409-316-2943-23419619373465
Net Cash Flow-147130498-138-245765-734186798-348-21370

IFCI Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days162163100786159122324345759
Inventory Days
Days Payable
Cash Conversion Cycle162163100786159122324345759
Working Capital Days28473-101-35-68-83-159-203-225-399-467-706
ROCE %11%10%9%9%8%5%9%4%6%-5%-4%5%

IFCI Ltd Financial Efficiency Indicators Chart

IFCI Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters61.02%61.02%63.81%63.81%63.81%64.86%64.86%64.86%66.35%66.35%70.32%70.32%
FIIs2.51%2.82%2.80%2.50%2.53%2.38%2.04%1.90%1.99%2.00%1.51%1.87%
DIIs10.05%9.88%9.16%9.03%8.67%8.13%7.68%2.39%2.29%2.29%2.00%2.01%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%4.99%4.70%4.70%4.13%4.03%
Public26.42%26.28%24.23%24.66%24.99%24.63%25.42%25.87%24.69%24.68%22.03%21.76%
No. of Shareholders5,23,0725,26,4815,25,4935,21,5255,33,2445,53,3025,44,4535,38,5705,24,7235,20,6045,05,9695,41,937

IFCI Ltd Shareholding Pattern Chart

No. of IFCI Ltd Shareholders

IFCI Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund6172480.291.34
Groww Nifty Total Market Index Fund13850.010

IFCI Ltd ROCE Trend

IFCI Ltd EPS Trend

IFCI Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-0.95-8.71-10.24-1.36-2.88
Diluted EPS (Rs.)-0.95-8.71-10.24-1.36-2.88
Cash EPS (Rs.)-0.20-8.06-9.70-0.83-2.43
Book Value[Excl.RevalReserv]/Share (Rs.)30.3724.0425.4536.1338.13
Book Value[Incl.RevalReserv]/Share (Rs.)30.3724.0425.4536.1338.13
Revenue From Operations / Share (Rs.)6.767.3810.9016.9316.64
PBDIT / Share (Rs.)3.38-2.44-4.588.506.91
PBIT / Share (Rs.)3.05-2.75-4.968.026.54
PBT / Share (Rs.)0.11-7.24-10.99-0.55-4.10
Net Profit / Share (Rs.)-0.54-8.37-10.08-1.32-2.81
NP After MI And SOA / Share (Rs.)-0.94-8.71-10.24-1.36-2.88
PBDIT Margin (%)50.02-33.03-41.9850.2241.54
PBIT Margin (%)45.04-37.31-45.4847.3839.29
PBT Margin (%)1.75-98.13-100.89-3.28-24.65
Net Profit Margin (%)-8.06-113.46-92.50-7.77-16.87
NP After MI And SOA Margin (%)-13.98-117.98-93.95-8.02-17.31
Return on Networth / Equity (%)-5.51-64.98-54.87-4.56-9.12
Return on Capital Employeed (%)9.71-5.11-6.778.584.80
Return On Assets (%)-1.22-11.82-9.53-1.02-1.87
Long Term Debt / Equity (X)0.002.152.451.843.06
Total Debt / Equity (X)1.602.523.122.493.06
Asset Turnover Ratio (%)0.090.050.070.100.08
Current Ratio (X)1.443.002.572.847.45
Quick Ratio (X)1.432.982.562.827.40
Inventory Turnover Ratio (X)0.050.000.000.000.00
Dividend Payout Ratio (NP) (%)0.000.000.000.00-0.30
Dividend Payout Ratio (CP) (%)0.000.000.000.00-0.34
Earning Retention Ratio (%)0.000.000.000.00100.30
Cash Earning Retention Ratio (%)0.000.000.000.00100.34
Interest Coverage Ratio (X)1.16-0.54-0.750.990.65
Interest Coverage Ratio (Post Tax) (X)0.81-0.86-0.660.840.73
Enterprise Value (Cr.)7323.619371.4512088.2111754.0518172.22
EV / Net Operating Revenue (X)4.936.045.854.096.44
EV / EBITDA (X)9.86-18.27-13.938.1515.50
MarketCap / Net Operating Revenue (X)1.451.501.100.240.82
Retention Ratios (%)0.000.000.000.00100.30
Price / BV (X)0.570.820.640.130.43
Price / Net Operating Revenue (X)1.451.501.100.240.82
EarningsYield-0.09-0.78-0.85-0.33-0.20

IFCI Ltd Profitability Ratios (%)

IFCI Ltd Liquidity Ratios

IFCI Ltd Liquidity Ratios (%)

IFCI Ltd Interest Coverage Ratios (X)

IFCI Ltd Valuation Ratios

Fair Value / Intrinsic Value of IFCI Ltd

Fair Value: ₹8.73

The stock is overvalued by 81.81% compared to the current price ₹48

*Investments are subject to market risks

Strength and Weakness of IFCI Ltd

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.98 and average Dividend Yield of 9.78%.
  2. The stock has a low average Working Capital Days of -174.08, which is a positive sign.
  3. The company has higher reserves (3,734.23 cr) compared to borrowings (121.85 cr), indicating strong financial stability.
  4. 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 5.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 69.33, which may not be favorable.

Should I Buy IFCI Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in IFCI Ltd:
    1. Net Profit Margin: -8.06%
      • 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: 9.71% (Industry Average ROCE: 9.27%)
      • 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. Interest Coverage Ratio (Post Tax): 0.81
      • 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.
    4. Quick Ratio: 1.43
      • 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.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 13.25)
      • 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.
    6. ✗ Total Debt / Equity: 1.60
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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