IFCI banks on financial aid by government

IFCI jumped 3.67% to Rs 64.90 at 15:30 IST on BSE after Government allocated Rs 433 crore to the company in the Union Budget 2008-09 for restructuring old liabilities.

On BSE, 1.72 crore shares of the scrip were traded. The stock had an average daily volume of 1.46 crore shares on BSE in past one quarter.

The scrip had touched a high of Rs 68.90 and a low of Rs 60.05 so far during the day. The stock had hit a 52-week high of Rs 121.20 on 17 December 200 and a 52-week low of Rs 23.15 on 6 March 2007.

The scrip had outperformed the market in the one month to 28 February 2008, adding 5.83% as against the Sensex's 0.37% rise. It had, however, underperformed the market in the past three months, falling 33.83% against the Sensex's 7.95% slide.

The state-run term lending institution has an equity capital of Rs 763.73 crore. Face value per share is Rs 10.

At the current price of Rs 64.90, the scrip trades at a PE multiple of 3.24, based on Q3 December 2007 annualised EPS of Rs 19.97.

The net profit if IFCI rose 146.5% to Rs 318.94 crore on 113.4% rise in operating income to Rs 784.25 crore in Q3 December 2007 over Q3 December 2006.

IFCI's principal activities are project financing, providing financial services and comprehensive corporate advisory services. The company also provides equipment finance, equipment credit, equipment leasing, corporate loans, short-term loans and working capital loans to meet the specific needs of corporate.