Adobe Stock
Something strange is happening with IFCI . The stock has gone from Rs 40 to nearly Rs 70 in just 13 trading days. That's a 74 per cent jump, without any game-changing news from the company.
On Tuesday (May 28, 2025) alone, the stock spiked 13.8 per cent. Volumes exploded too: Over 12 crore shares changed hands across exchanges.
Why is the stock running?
-
Stake bump by the government:
As of March 2025, the government increased its holding in IFCI to nearly 73 per cent.
-
Capital infusion of Rs 500 crore:
In January 2025, the board approved a preferential issue of shares to the government. This kind of backing helps clean up the balance sheet and sends a positive signal.
-
Heavy volumes, speculative buying:
IFCI's stock is buzzing with activity. Daily volumes have more than doubled. With small-cap sentiment strong, even a hint of government support is enough to send traders scrambling.
- No bad news: In a market where many NBFCs are facing pressure, the absence of negative developments with IFCI can itself act as a tailwind.
What does IFCI do?
IFCI is a government-owned NBFC that's been around since 1948. It lends to infrastructure, SMEs and other industrial sectors.
Here's how the company's fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 18,003 crore |
| ROE | 6.5 per cent |
| ROCE | 13.4 per cent |
| P/E ratio | 105.3 |
| P/B ratio | 1.9 |
| Book value | Rs 35.2 |
| EPS | Rs 0.6 |
Value Research Ratings
IFCI has a three-star rating according to Value Research Online .
Here's how it scores across other parameters.
-
Quality:
6/10
-
Growth:
3/10
-
Valuation:
5/10
- Momentum: 5/10
What investors should know
There's no doubt that IFCI's rally looks tempting. But if you're thinking long-term, ask this: Has the core business changed?
Not really. The numbers are stable, but nothing is screaming breakout. And when a stock moves without news, the reversal may just as brutal.
Unless you know what you're getting into, it's best to watch from the sidelines.
Serious about wealth? So are we.
Join thousands of smart investors who rely on Value Research Stock Advisor for expert-picked stocks, time-tested strategies and long-term discipline.
Stop guessing. Start growing. Check it out now: Value Research Stock Advisor .
Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
