IFCI Ltd. was listed on the NSE on April 26, 1995. In the last five years, its stock has given a massive return of around 840%. Will IFCI continue to provide such great returns in 2025 and the future years as well? Let’s explore IFCI’s growth potential and IFCI share price target from 2025 to 2050 in this article.
About IFCI
The Industrial Finance Corporation of India (IFCI) is a government company under the Ministry of Finance. It was established in 1948 as India’s first development financial institution. IFCI plays an important role in funding large projects in infrastructure, manufacturing, and services. It provides loans, investment services, and financial advice to businesses.
IFCI Business Model
- Providing Loans: IFCI gives loans to businesses, particularly in industries such as manufacturing, power, and infrastructure.
- Advisory Services: IFCI offers services such as financial advice, project planning, and management to companies.
- Leasing and Renting: IFCI leases properties and receives rental income from the businesses that use them.
- Government Schemes: IFCI contributes to the operation of various government schemes while also earning money as a service provider.
IFCI Fundamental Analysis
| Stock Name | IFCI Ltd. |
|---|---|
| NSE Symbol | IFCI |
| Market Cap | ₹ 10,572 Cr. |
| 52W High | ₹ 91.4 |
| 52W Low | ₹ 35.7 |
| Stock P/E | 89.6 |
| Book Value | ₹ 22.4 |
| Dividend Yield | 0.00 % |
| ROCE | 10.2 % |
| ROE | 2.48 % |
| Face Value | ₹ 10.0 |
| Industry PE | 20.5 |
| Price to book value | 1.75 |
| Debt to equity | 0.86 |
| PEG Ratio | 5.40 |
| Quick ratio | 1.29 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 66.35% | 70.32% | 72.57% |
| FIIs | 2.00% | 2.29% | 2.73% |
| DIIs | 2.29% | 2.03% | 1.60% |
| Government | 4.70% | 3.99% | 2.86% |
| Public | 24.68% | 21.37% | 20.23% |
| No. of Shareholders | 5,20,604 | 8,26,079 | 9,97,758 |
Key Factors Driving IFCI Future Growth
- Strategic Shift to Infrastructure Advisory: IFCI Ltd is shifting its focus from traditional lending to infrastructure advisory services, in line with India’s projected infrastructure investment of 11.11 trillion in 2024-25.
- Government Support and Capital Infusion: IFCI Ltd has strong government support, with a 71.72% stake and a ₹500 crore capital infusion, boosting financial stability and investor confidence.
- Turnaround to Profitability: IFCI Ltd achieved profitability in FY24, reporting a net profit of ₹241 crore after five years of losses, indicating successful strategic realignment.
- Geographical Expansion: IFCI Ltd is expanding its presence in tier 2 and tier 3 cities, broadening its reach and promoting financial inclusion in India.
- Collaborative Partnerships: IFCI Ltd is forming collaborative partnerships with fintech startups and research institutions to accelerate innovation and develop advanced financial solutions.
- Improved Asset Quality: IFCI Ltd’s focus on advisory services and risk management practices has resulted in higher asset quality, lower non-performing assets, and increased profitability.
- Engagement in Major Infrastructure Projects: IFCI Ltd has played a key role in financing major infrastructure projects such as Adani Mundra Ports, GMR Goa International Airport, and Salasar Highways.
Pros of IFCI
- Strong Profit Growth: IFCI has achieved a strong profit growth of 27% CAGR over the last three years.
- Low P/B Ratio (Undervalued Stock): IFCI has a low Price to Book Value (P/B) ratio of 1.89, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 2.73% in March 2025 from 2.60% in December 2024, which indicates growing confidence in the IFCI future potential by the FIIs.
Cons of IFCI
- Decreasing Sales – IFCI’s sales have been decreasing at a CAGR of -7% over the last five years.
- Low Return on Equity (ROE): Over the last five years, IFCI’s average ROE is -19.1%, which shows that IFCI is not using shareholders’ funds efficiently to generate profits.
- Low Return on Capital Employed (ROCE): Over the last five years, IFCI’s average ROCE is 2.53%, which shows that IFCI is not using its capital efficiently to generate profits.
- Overvaluation Concern: IFCI is trading at a PE ratio of 95.7, which is too higher than the industry average of 19.2, which indicates that the stock may be overvalued compared to its peers.
By the end of 2025, the IFCI share price is expected to be around ₹60 in normal conditions. In a bear market, it might be ₹51, and in a bull market, it may go up to ₹70.
| IFCI Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 51 |
| 2nd Target | 60 |
| 3rd Target | 70 |
In 2026, the IFCI share price is expected to be around ₹75 in a normal situation. In a bear market, it might be ₹60, and in a bull market, it may cross ₹85.
| IFCI Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 60 |
| 2nd Target | 75 |
| 3rd Target | 85 |
According to our analysis, the IFCI share price is expected to be around ₹95 in 2027. In a bear market, it might be ₹80, and in a bull market, it may cross ₹110.
| IFCI Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 80 |
| 2nd Target | 95 |
| 3rd Target | 110 |
According to our analysis, the IFCI share price may trade near ₹120 by 2028; bearish conditions could pull it down to ₹90, while a strong bull run might lift it to ₹140.
| IFCI Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 90 |
| 2nd Target | 120 |
| 3rd Target | 140 |
In a normal situation, the IFCI share price is projected to be approximately ₹165 in 2029. In a bear market, the value may be as low as ₹110, while in a bull market, it may rise to ₹180.
| IFCI Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 110 |
| 2nd Target | 165 |
| 3rd Target | 180 |
By 2030, the IFCI share price is projected to be around ₹200 under normal conditions. In adverse markets, the price could fall to ₹130, while favorable conditions might push it up to ₹240.
| IFCI Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 130 |
| 2nd Target | 200 |
| 3rd Target | 240 |
By 2035, the IFCI share price is projected to be around ₹550 under normal conditions. In adverse markets, the price could fall to ₹260, while favorable conditions might push it up to ₹700.
| IFCI Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 260 |
| 2nd Target | 550 |
| 3rd Target | 700 |
Under normal conditions, the IFCI share price might hit ₹1700 by 2040. A bearish trend could lower it to ₹510, whereas a bullish surge could raise it to ₹2140.
| IFCI Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 510 |
| 2nd Target | 1700 |
| 3rd Target | 2140 |
In 2050, the IFCI share price is expected to be around ₹8200 in a normal situation. In a bear market, it might be ₹2100, and in a bull market, it may go up to ₹12,800.
| IFCI Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 2100 |
| 2nd Target | 8200 |
| 3rd Target | 12,800 |
| Years | Target Price |
|---|---|
| IFCI Share Price Target 2025 | ₹51 to ₹70 |
| IFCI Share Price Target 2026 | ₹60 to ₹85 |
| IFCI Share Price Target 2027 | ₹80 to ₹110 |
| IFCI Share Price Target 2028 | ₹90 to ₹140 |
| IFCI Share Price Target 2029 | ₹110 to ₹180 |
| IFCI Share Price Target 2030 | ₹130 to ₹240 |
| IFCI Share Price Target 2035 | ₹260 to ₹700 |
| IFCI Share Price Target 2040 | ₹510 to ₹2140 |
| IFCI Share Price Target 2050 | ₹2100 to ₹12800 |
Conclusion
Over the last five years, IFCI has experienced significant growth and provided investors with impressive returns. With strong government backing, a focus on infrastructure development, and rising demand for financial services, the company has several growth drivers in place. However, challenges such as declining sales and a high P/E ratio present potential risks. For the latest updates, you can visit IFCI official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
