IRFC's 3x-5x Growth Beyond Indian Railways' Investment: Unveiling the Strategy
Get ready to ride the multibagger wave as I dive into the fascinating story of IRFC, the financial arm of Indian Railways, and uncover its hidden gems that could potentially yield massive returns!
- Here are the bullet points summarizing the video:
- * The speaker thinks about spotting a multibagger early, but instead discusses IRFC (Indian Railway Finance Corporation)
- * IRFC's stock has dropped 47% from its peak
- * The speaker is optimistic about IRFC's future growth
- * IRFC provides financing to Indian Railways through three resources:
- + Revenue from operations (RFO)
- * RFO has grown at a pace of 1.2% per year
- * IRFC's top line revenue is increasing, with a growth rate of 96% in the current TTM (trailing twelve months) compared to the same period last year
- * The speaker expects the top line to reach ₹2744 crores by the next financial year, translating to a growth rate of 3x-5x that of Indian Railways
- Comparison to Indian Railways
- * IRFC's revenue is almost 3x-5x that of Indian Railways' revenue
- * The speaker thinks this makes IRFC an interesting investment opportunity
- Note: Some of the bullet points may not be directly related to the main topic of IRFC, but are included to provide context and give a sense of the speaker's thought process.
Source: CA Rachana Phadke Ranade via YouTube
❓ What do you think? What are the underlying factors that could explain the significant disconnect between IRFC's growth and the growth experienced by the Indian Railways? Feel free to share your thoughts in the comments!