IRFC (Indian Railway Finance Corp Ltd) vs BSE Sensex 30 Comparison

IRFC

BSE Sensex 30

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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IRFC

BSE Sensex 30

Difference

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IRFC

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

IRFC

PFC

RECLTD

8593

EFN

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Indian Railway Finance Corp Ltd
Glance View

Market Cap

1.8T INR

Industry

Financial Services

Indian Railway Finance Corporation Ltd. (IRFC) was born in 1986 as the financial arm of Indian Railways, a vital component of India's expansive transport infrastructure. Entrusted with the mandate to raise funds for the development and expansion of the railways, IRFC operates with a clear, strategic focus. Its primary function is to procure funds from both domestic and international financial markets and to lease the acquisition of critical assets such as rolling stock, which includes locomotives, coaches, and wagons, to Indian Railways. This leasing mechanism provides a steady stream of income through lease rentals paid by Indian Railways, ensuring a sustainable financial backbone to support the rail sector's infrastructure and growth ambitions. The company's operational model elegantly aligns with the extensive needs of the Indian Railways. By acting as a financial intermediary, IRFC transforms capital into tangible assets, enabling infrastructure upgrades and modernization without burdening the railways' own fiscal resources. Its expertise in securing financing at competitive rates allows Indian Railways to maintain liquidity and operational efficiency. This symbiotic relationship not only fortifies the Indian Railways' budgetary discipline but also propels economic progress by bolstering connectivity across the nation. In essence, IRFC's role as a financial locomotive helps power the colossal engine that is Indian Railways, bringing both economic and geographical landscapes closer together.

View IRFC Analysis

IRFC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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JP		Tokyo Century Corp TSE:8439	Add
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Add

IN		Power Finance Corporation Ltd NSE:PFC	Select
IN		REC Limited NSE:RECLTD	Select
JP		Shinkin Central Bank TSE:8421	Select
JP		Mitsubishi HC Capital Inc TSE:8593	Select
CA		Element Fleet Management Corp TSX:EFN	Select
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Select
TW		Chailease Holding Company Ltd TWSE:5871	Select
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Select
JP		Tokyo Century Corp TSE:8439	Select
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Select

IN		Power Finance Corporation Ltd NSE:PFC	Add
IN		REC Limited NSE:RECLTD	Add
JP		Shinkin Central Bank TSE:8421	Add
JP		Mitsubishi HC Capital Inc TSE:8593	Add
CA		Element Fleet Management Corp TSX:EFN	Add
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Add
TW		Chailease Holding Company Ltd TWSE:5871	Add
IN		Housing and Urban Development Corporation Ltd NSE:HUDCO	Add
JP		Tokyo Century Corp TSE:8439	Add
CN	J	Jiangsu Financial Leasing Co Ltd SSE:600901	Add

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IRFC

vs

BSE Sensex 30

Stocks Performance
IRFC vs BSE Sensex 30

Performance Gap
IRFC vs BSE Sensex 30

Performance By Year
IRFC vs BSE Sensex 30

Competitors Performance
Indian Railway Finance Corp Ltd vs Peers

Indian Railway Finance Corp Ltd
Glance View

Company

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IRFC vs BSE Sensex 30

Stocks Performance IRFC vs BSE Sensex 30

Performance Gap IRFC vs BSE Sensex 30

Performance By Year IRFC vs BSE Sensex 30

Competitors Performance Indian Railway Finance Corp Ltd vs Peers

Indian Railway Finance Corp Ltd Glance View

Company

Help

Tools

Stocks

IRFC

vs

BSE Sensex 30

Stocks Performance
IRFC vs BSE Sensex 30

Performance Gap
IRFC vs BSE Sensex 30

Performance By Year
IRFC vs BSE Sensex 30

Competitors Performance
Indian Railway Finance Corp Ltd vs Peers

Indian Railway Finance Corp Ltd
Glance View