IRFC Standalone June 2021 Net Sales at Rs 4,581.56 crore, up 24.86% Y-o-Y

IRFC Standalone June 2021 Net Sales at Rs 4,581.56 crore, up 24.86% Y-o-Y

Net Sales at Rs 4,581.56 crore in June 2021 up 24.86% from Rs. 3,669.22 crore in June 2020.

Quarterly Net Profit at Rs. 1,501.95 crore in June 2021 up 68.42% from Rs. 891.81 crore in June 2020.

EBITDA stands at Rs. 4,578.54 crore in June 2021 up 26.04% from Rs. 3,632.62 crore in June 2020.

IRFC EPS has increased to Rs. 1.15 in June 2021 from Rs. 0.68 in June 2020.

IRFC shares closed at 23.80 on August 13, 2021 (NSE)

Markets likely to consolidate; ONGC, IRFC, Future group stocks in focus

MUMBAI: Markets are likely to consolidate on Friday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 54,843.98, up 318.05 points or 0.58% and the Nifty was at 16,364.40, up 82.15 points or 0.50%.

Most Asian equity markets continued to ignore record highs hit elsewhere in the world and fell in early trading on Friday, though Australia bucked the trend.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.59%, having closed lower on each of the past three days.

Traders have been pointing to continued worries about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the new coronavirus in several countries in the region.

Japan’s Nikkei dropped 0.6%. Korea’s Kospi dropped 1.45%. Hong Kong fell 0.45%.

Overnight, MSCI’s gauge of stocks across the globe hit a new record high, and the Dow Jones Industrial Average and S&P 500 also closed at record highs for the third consecutive day.

Earlier, European stocks had equalled their longest winning streak since 2017, closing up 0.1% and extending gains for a ninth consecutive session.

Among key stocks Oil and Natural Gas Corporation, Grasim Industries, Apollo Hospitals, Indraprastha Gas, Hindustan Aeronautics, Petronet LNG, Indian Railway Finance Corporation, General Insurance Corporation of India, Godrej Industries and Sun TV Network, will announce June quarter earnings today.

Future group promoters, including Kishore Biyani and several group holding companies, have approached the Supreme Court against an order passed by the Delhi High Court directing to enforce the order of the Singapore-based Emergency Arbitrator.

Indian capital markets, both equity and debt, have shown a strong ability to provide financing and capital for businesses, and it is important for India to ensure the “sustained growth" of capital markets, said Uday Kotak, chairman of Kotak Mahindra Bank, at the Confederation of Indian Industry (CII) Annual Meeting 2021.

Data released by the National Statistical Office showed retail inflation eased to 5.59% in July from 6.26% in June while the Index of Industrial Production (IIP) grew at 5.7% month-on-month and 13.6% year-on-year.

The dollar held firm on Friday, staying near its highest level in four months against a basket of currencies as investors looked for more hints from the Federal Reserve on its plans to reduce monetary stimulus.

The dollar index firmed to 92.976, near Wednesday’s four-month high of 93.195.

The yield on benchmark 10-year Treasury notes was last 1.3506%, little changed from its U.S. close of 1.367% on Thursday.

Oil prices fell for a second straight day after the International Energy Agency warned that demand growth for crude and its products had slowed sharply.

(Reuters contributed to the story)

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Indian Railway Finance Corporation Limited (NSE:IRFC) Looks Inexpensive But Perhaps Not Attractive Enough

With a price-to-earnings (or “P/E”) ratio of 6.4x Indian Railway Finance Corporation Limited ( ) may be sending very bullish signals at the moment, given that almost half of all companies in India have P/E ratios greater than 21x and even P/E’s higher than 49x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so limited.

Indian Railway Finance has been doing a good job lately as it’s been growing earnings at a solid pace. One possibility is that the P/E is low because investors think this respectable earnings growth might actually underperform the broader market in the near future. If that doesn’t eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.

NSEI:IRFC Price Based on Past Earnings August 18th 2021

Does Growth Match The Low P/E?

Although there are no analyst estimates available for Indian Railway Finance, take a look at this to see how the company stacks up on earnings, revenue and cash flow.

There’s an inherent assumption that a company should far underperform the market for P/E ratios like Indian Railway Finance’s to be considered reasonable.

Retrospectively, the last year delivered a decent 7.7% gain to the company’s bottom line. EPS has also lifted 19% in aggregate from three years ago, partly thanks to the last 12 months of growth. Therefore, it’s fair to say the earnings growth recently has been respectable for the company.

Comparing that to the market, which is predicted to deliver 23% growth in the next 12 months, the company’s momentum is weaker based on recent medium-term annualised earnings results.

In light of this, it’s understandable that Indian Railway Finance’s P/E sits below the majority of other companies. Apparently many shareholders weren’t comfortable holding on to something they believe will continue to trail the bourse.

The Bottom Line On Indian Railway Finance’s P/E

Typically, we’d caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

As we suspected, our examination of Indian Railway Finance revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. At this stage investors feel the potential for an improvement in earnings isn’t great enough to justify a higher P/E ratio. If recent medium-term earnings trends continue, it’s hard to see the share price rising strongly in the near future under these circumstances.

It’s always necessary to consider the ever-present spectre of investment risk. (at least 2 which are a bit unpleasant), and understanding these should be part of your investment process.

If you’re unsure about the strength of Indian Railway Finance’s business, why not explore for some other companies you may have missed.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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