In Friday’s trading session, the shares of a development finance institution surged by 2.6 percent to hit an intraday high at Rs. 73.28, as compared to its previous closing price of Rs. 71.43.
With a market capitalisation of Rs. 18,297.7 crore, the shares of IFCI Limited opened in the green at Rs. 71.94. The stock has hit its 52-week high on 15th July this year at Rs. 79.
Financials:
The company’s consolidated total income for Q4 FY23-24 stood at Rs. 605.4 crore, marking a 33.2 percent QoQ increase from Rs. 454.5 crore in Q3 FY23-24, and a 46.4 percent increase year-on-year from Rs. 413.6 crore in Q4 FY22-23.
IFCI witnessed an increase in its net profit from a loss of Rs. 241.2 crore in Q4 FY22-23 to a profit of Rs. 157.3 in Q4 FY23-24, while the net profit grew by 300.3 percent on a quarter-on-quarter basis from Rs. 39.3 crore in Q3 FY23-24 to Rs. 157.3 in Q4 FY23-24.
The company reported a positive net profit margin of 12.13 percent in FY23-24, an improvement from a negative 8.06 percent in FY22-23. Similarly, the operating margin increased to 66.39 percent in FY23-24 from 45.04 percent in FY22-23.
Return on Equity (ROE) improved to 2.28 percent in FY23-24, up from a negative 6.17 percent in FY22-23, while the Return on Capital Employed (RoCE) also grew to 16.41 percent in FY23-24 from 9.71 percent in FY22-23.
Other income surged significantly by 791.6 percent YoY, rising from Rs. 12 crore in Q4 FY22-23 to Rs. 107 crore in Q4 FY23-24, while on a quarterly basis, it increased by 664.3 percent from Rs. 14 crore in Q3 FY23-24.
Operating expenses decreased by 29 percent YoY, declining from Rs. 598 crore in Q4 FY22-23 to Rs. 425.2 crore in Q4 FY23-24, showcasing effective cost management strategies.
Also read
Shareholding Pattern:
As per the shareholding pattern of March 2024, the Promoters hold a 70.32 percent stake in the company, Foreign Institutional Investors (FII) hold a 2.29 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 25.37 percent and 2.03 percent stake in IFCI, respectively.
Based on the June 2024 shareholding data from BSE, the promoter President of India increased ownership in IFCI by 1.4 percent, resulting in a total holding of nearly 187.45 crore equity shares, representing a 71.72 percent stake in the company, with a holding value of about Rs. 13,056.3 crores based on the current market price.
Company Overview:
Established in 1948, IFCI Limited, originally known as the Industrial Finance Corporation of India, is an RBI-registered Systematically Important Non-Deposit Taking Non Banking Finance Company (NBFC-ND-SI) in the public sector registered, along with providing Government and Corporate Advisory services.
It offers a wide range of financial services including project financing, infrastructure development, debt and equity underwriting, venture capital, stock broking & merchant banking, factoring, asset reconstruction, tourism finance, microfinance, corporate and infrastructure advisory, technical consultancy and management education.
IFCI’s financial products range from Short-term and Long-term Loans to Lease Financing and structured products like acquisition finance, pre-IPO investment, IPO finance, and promoter funding.
In Government Advisory, IFCI serves as a Project Management Agency (PMA) for various Production Linked Incentive (PLI) schemes under the “Atmanirbhar Bharat” initiative.
The company is also the Nodal Agency for monitoring loans of the Sugar Development Fund (SDF) since 1984.
Stock performance:
The stock has delivered multibagger returns of nearly 450 percent in one year, as well as around 115.6 percent returns in the last six months. So far in 2024, the shares of IFCI have given about 138.8 percent of multibagger returns.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
