IFCI Limited Fundamental Analysis
IFCI Limited (IFCI.NS) shows weak financial fundamentals with a PE ratio of 125.32, profit margin of 8.82%, and ROE of 1.74%. The company generates $20.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IFCI.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakIFCI.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakIFCI.NS trades at a premium to fair value.
Growth Score
ModerateIFCI.NS shows steady but slowing expansion.
Financial Health Score
ExcellentIFCI.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateIFCI.NS maintains healthy but balanced margins.
Key Financial Metrics
Is IFCI.NS Expensive or Cheap?
P/E Ratio
IFCI.NS trades at 125.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IFCI.NS's PEG of 82.71 indicates potential overvaluation.
Price to Book
The market values IFCI Limited at 2.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 43.74 times EBITDA. This signals the market has high growth expectations.
How Well Does IFCI.NS Make Money?
Net Profit Margin
For every $100 in sales, IFCI Limited keeps $8.82 as profit after all expenses.
Operating Margin
Core operations generate 29.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.74 in profit for every $100 of shareholder equity.
ROA
IFCI Limited generates $0.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IFCI Limited produces operating cash flow of $3.41B, showing steady but balanced cash generation.
Free Cash Flow
IFCI Limited generates strong free cash flow of $3.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.25 in free cash annually.
FCF Yield
IFCI.NS converts 1.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
125.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
82.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
18.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How IFCI.NS Stacks Against Its Sector Peers
| Metric | IFCI.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 125.32 | 21.18 | Worse (Expensive) |
| ROE | 1.74% | 613.00% | Weak |
| Net Margin | 8.82% | -16891.00% (disorted) | Weak |
| Debt/Equity | 0.39 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 18.18 | 937.29 | Strong Liquidity |
| ROA | 0.68% | -847.00% (disorted) | Weak |
IFCI.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IFCI Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical