IRFC Share Price Update: Navratna PSU Stock Down 20% YTD – Is It a Buying Opportunity Before the Dividend Record Date?

Board Meeting for Dividend: IRFC has scheduled a board meeting on March 17, 2025, to consider and approve a second interim dividend for FY 2024-25.
Dividend Record Date: The record date is March 21, 2025, meaning investors need to buy IRFC shares by March 20, 2025, to be eligible for the dividend.

YTD Decline: IRFC share price has dropped over 20% in 2025, following the stock market downturn after Donald Trump’s inauguration as the 47th U.S. President.
Current Trading Status: The stock is 49% below its 52-week high, indicating some weakness despite steady financial growth.

Revenue & Profit Growth:
- Average revenue growth of 15%
- Median profit growth of 11%
- Return on Equity (ROE) at 13.7%, reflecting strong profitability.
Valuation & Stability:
- P/E ratio of 23.42, slightly above the industry median of 20.
- Zero NPA status, high capital adequacy ratio (CRAR) over 700%, and self-imposed debt-to-equity limit of 10 (currently at 8-9).
Future Growth Drivers:
- Expanding beyond Indian Railways into higher-margin projects with 3x-5x higher returns.
- ₹6,000 crore cushion in unabsorbed depreciation, reducing tax liabilities for the next 4-5 years.

Strong Government-Backed Pipeline: ₹4.5 lakh crore funding, involvement in Gati Shakti & India-Middle East-Europe Economic Corridor projects.
Long-Term Potential: While short-term corrections may occur, its robust financials, steady railway financing demand, and strategic expansion make it a solid long-term investment.