Indian Railway Finance Corp (IRFC), acting through the Ministry of Railways (MOR), Government of India is a dedicated borrowing arm of the Indian Railways. Healthy asset growth, diversified borrowing mix, regulated lending margins, and lean cost structure are characteristics unique to IRFC, a PSU NBFC. This coupled with NIL NPA and robust capital adequacy (400%+ CAR), is a perfect recipe for superior returns. With ~Rs15tn of capital outlay towards infrastructure development by the Indian Railways till FY25, IRFC offers a play on the fast-growing railway infrastructure. On the valuation front, the IPO is priced at 1x H1FY21 ABV (at the higher end of the price band). In our...