Is IFCI the Best Stock in Its Sector? Peer Comparison With PFC, REC and IRFC (September 2026)
- September 15, 2026
- Posted by: Kunal Singla
- Category: Market
IFCI CMP Rs 69.8 (30 Sep 2026). 52-week range Rs 46.23 to Rs 107.5. ROE 2.02%. P/E 43.4x vs industry 18.15x. Market cap Rs 18,807 Cr.
Quick Answer
Whether IFCI is the best stock in its sector depends on what you rank first, because IFCI trades at a P/E of 43.4 times against an industry average of 18.15 times while its return on equity is 2.02 percent. Against government-owned lenders Power Finance Corporation, REC and Indian Railway Finance Corporation, the peer average is a P/E of 7.4 times and a return on equity of 16.58 percent. IFCI has lower borrowings, with debt to equity of 0.39 against a peer average of 6.91, and it holds an investment portfolio alongside its lending business. The stock is at Rs 69.8, 11.1 percent below its 15 September price and 35.1 percent below its 52-week high of Rs 107.5.
Is IFCI the best stock in its sector? The stock trades on the NSE at Rs 69.8 as of 30 September 2026, within its 52-week range of Rs 46.23 to Rs 107.5, and has moved -11.1 percent since 15 September. IFCI Ltd is a government-owned financial institution that provides project and development finance and holds a diversified portfolio of investments across sectors.
This article compares IFCI with three government-owned lenders in the Finance sector, Power Finance Corporation, REC and Indian Railway Finance Corporation, using the same live data for each company. It also shows the peer average for P/E, return on equity and debt to equity.
Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers
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About IFCI
IFCI Ltd provides project and development finance and holds investments across sectors, and it is tracked as part of the Finance sector on Univest. At Rs 69.8 its market capitalisation is about Rs 18,807 crore, and it has no dividend yield at present.
Is IFCI the Best Stock in Its Sector?
IFCI is the best stock in its sector on one measure, borrowings: its debt to equity is 0.39 against a peer average of 6.91. On returns and valuation multiples it sits differently from peers, with a return on equity of 2.02 percent and a P/E of 43.4 times against 18.15 times for the industry. The valuation reflects expectations of improving returns rather than current earnings.
| Metric | IFCI |
|---|---|
| CMP (NSE) | Rs 69.8 |
| 52-Week High / Low | Rs 107.5 / Rs 46.23 |
| Market Cap | Rs 18,807 Cr |
| P/E (TTM) vs Industry P/E | 43.4x vs 18.15x |
| P/B | 2.1 |
| ROE | 2.02% |
| EPS (TTM) | Rs 1.61 |
| Book Value per Share | Rs 33.20 |
| Dividend Yield | 0.00% |
| Debt to Equity | 0.39 |
Compare IFCI against other Finance sector stocks on the Univest Screener.
How IFCI Compares Against Its Finance Sector Peers
The table sets IFCI against 3 government-owned Finance sector peers, using the same live data source for every company. The peer average is calculated across the 3 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity | Dividend Yield |
|---|---|---|---|---|---|
| IFCI | 18,807 | 43.4 | 2.02% | 0.39 | 0.00% |
| Power Finance Corporation | 107,187 | 3.19 | 18.22% | 7.0 | 5.71% |
| REC Ltd | 77,259 | 4.82 | 19.17% | 6.05 | 6.32% |
| Indian Railway Finance Corporation | 101,934 | 14.18 | 12.35% | 7.69 | 2.69% |
| Peer average (3 companies) | – | 7.4 | 16.58% | 6.91 | 4.91% |
Against this peer set, IFCI’s 2.02 percent return on equity is below the 16.58 percent peer average, and its P/E of 43.4 times is above the 7.4 times peer average. IFCI’s debt to equity of 0.39 is well below the 6.91 peer average, because the three peers fund large loan books with borrowings.
What Makes IFCI Worth Watching in Finance
Government ownership: Majority government ownership gives IFCI institutional stability that purely private lenders do not have. Diversified investments: Stakes across sectors spread exposure beyond a single lending book. Low borrowings: Debt to equity of 0.39 leaves room to fund growth without stretching the balance sheet.
IFCI Valuation: How to Read It
At 43.4 times earnings and 2.1 times book value, IFCI is priced above the 7.4 times peer average P/E while its return on equity is 2.02 percent. The stock has fallen 11.1 percent since 15 September and sits 35.1 percent below its 52-week high, so the multiple has already eased. Investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Bata India the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track IFCI and other Finance sector stocks.
How to Track IFCI Before You Invest
Step 1: Open the Univest Screener and search for IFCI to see live price, valuation ratios and peer comparisons in the Finance sector.
Step 2: Compare P/E, P/B and return on equity against Power Finance Corporation, REC and IRFC before deciding if the valuation fits your strategy.
Step 3: Set price alerts near the recent Rs 46 to Rs 107 range levels using the Univest App.
Step 4: Open a broking account on Univest if you decide to add the stock, and size the position for your own risk appetite.
Conclusion
IFCI earns a place in the best stock in its sector conversation on low borrowings and an investment portfolio, with a debt to equity of 0.39 against a peer average of 6.91. Its 2.02 percent return on equity and P/E of 43.4 times differ from the 16.58 percent and 7.4 times peer averages, so the label depends on your priorities. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on IFCI as the Best Stock in Its Sector
Is IFCI the best stock in its sector?
Ans. IFCI leads on low borrowings, with debt to equity of 0.39 against a peer average of 6.91, but it trails on returns and valuation multiples. Its return on equity is 2.02 percent against a peer average of 16.58 percent, and its P/E of 43.4 times is above the 7.4 times peer average, so the answer depends on what you prioritise.
What is the current share price of IFCI?
Ans. IFCI was trading at Rs 69.8 on the NSE at about 1:11 PM IST on 30 September 2026, within a 52-week range of Rs 46.23 to Rs 107.5.
What sector does IFCI belong to?
Ans. IFCI is classified under the Finance sector on Univest. It is a government-owned financial institution that provides project and development finance and holds a diversified portfolio of investments.
How does IFCI compare with PFC and REC on P/E?
Ans. IFCI trades at a P/E of 43.4 times, while Power Finance Corporation trades at 3.19 times and REC at 4.82 times. Both peers also report higher returns on equity, at 18.22 percent and 19.17 percent.
What is IFCI’s return on equity?
Ans. IFCI’s return on equity is 2.02 percent, against 18.22 percent for PFC, 19.17 percent for REC and 12.35 percent for IRFC. The valuation reflects expectations of improving returns.
Does IFCI pay a dividend?
Ans. IFCI shows a dividend yield of 0.00 percent, while its peers PFC, REC and IRFC yield 5.71 percent, 6.32 percent and 2.69 percent. Investors who want income may compare payout history before deciding.
Should I invest in IFCI based on its sector position?
Ans. IFCI’s low debt and investment portfolio make it worth researching, but its return ratios and valuation differ from peers. Consider your risk appetite and consult a SEBI-registered advisor before investing.
