financial_services

Indian Railway Finance

IRFC · Nifty 50

₹100.44

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionfinancial_services sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score79/100 (STRONG). 3 positive flags, 3 concerns.
Historical Context104 similar technical setups. Average outcome: -6.8% decline. 0% positive.
Bank HealthROA 1.34% · PB 2.2 · Asset growth 5.7%.

Fundamental

79/100

STRONG

Trust

90/100

Verification

Coverage

44/100

LIMITED

Quick Take

Indian Railway Finance scores 79/100 on fundamentals (strong). Indian Railway Finance: BROAD EXPANSION regime.

Fundamental Score: 79/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 12.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE12.2%=
25.0%Net Margin
×
0.1xTurnover
×
9.1xLeverage

ROE of 12.17% is moderate leverage-driven and stable. Net margin of 25.0% × asset turnover of 0.05x × leverage of 9.1x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 25.0% means the company keeps ₹25.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.05x means the company generates ₹0.05 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 9.1x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

25.8%

Operating

25.3%

Net

25.0%

declining

Gross margin 25.8% → operating margin 25.3% → net margin 25.0%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Peer Comparison

Indian Railway Finance is compared against 10 peers in the financial_services sector.

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Bank Metrics

Return on Assets

1.34%

Benchmark: >1%

Efficiency Ratio

75.0%

Lower is better

Asset Growth

+5.7%

Year over year

PB Ratio

2.2x

Price to book

ROA of 1.34% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 2.21x — trading above book. Premium valuation — market pricing in high growth expectations.

Key Watchpoints

🟢

Breaks above ₹105 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹95 (-5%)

Further downside risk

🟢

Financial_Services sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong ROA: ROA of 1.34% — above 1% benchmark for banks

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 3 Positive6 total flags
🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -3.9x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 126% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Price/Sales: 18.2x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

✅Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅Receivables decreasing — 470.9% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

✅High promoter holding: 85%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
✅ Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
17.9UNAVAILABLE
P/B Ratio
2.2HIGH
Market Cap
₹12531390.2L CrHIGH
From 52W High
70% of high
Sector Peers
10
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