IRCTC stands as the singular entity authorized to orchestrate the digital tapestry of railway travel in India. Pioneering online ticketing for railway passengers, it has evolved into one of the most transacted websites in the Asia Pacific region, witnessing a remarkable transaction volume of over 34.5 million per month and an impressive 6.27 million logins daily. The platform’s significance is further underscored by the staggering statistics of more than 1.1 million tickets booked each day, serving over 2 million passengers through www.irctc.co.in and “Rail Connect” in FY22.
With an unrivaled market share of approximately 80% in reserved rail tickets, IRCTC has become the lifeblood of travel logistics for millions. The exponential growth in ticket bookings, surging from 7,200 per minute in 2014 to an astounding 26,000 tickets per minute in FY22, attests to its robust operational efficiency and the increasing reliance of passengers on its seamless services. As this article delves into the intricacies of its market dynamics and exceptional performance, it invites scrutiny into the bold prediction of achieving a price target of 2k.
About IRCTC
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) holds a significant position as a “Mini Ratna (Category-I)” Central Public Sector Enterprise, falling under the purview of the Ministry of Railways, Government of India. Established on September 27, 1999, IRCTC serves as an extended arm of the Indian Railways, dedicated to elevating, professionalizing, and overseeing catering and hospitality services across railway stations, trains, and various locations. The corporation’s primary mission is not only to enhance the travel experience for millions of railway passengers but also to promote domestic and international tourism. With an authorized capital of 250 crores and a paid-up capital of 160 crores, IRCTC operates as a crucial player in the rail and tourism sectors.
At its core, IRCTC engages in diverse activities that span catering and hospitality, internet ticketing, travel and tourism, and the production of packaged drinking water under the brand “Rail Neer.” The corporation manages fourteen Rail Neer plants strategically located across the country, ensuring the availability of clean and safe drinking water for passengers. Additionally, eleven base kitchens, five zonal offices, and ten regional offices contribute to the seamless functioning of IRCTC’s extensive operations. The corporation’s Internet Ticketing Office and tourism office, both situated in New Delhi, play pivotal roles in facilitating convenient travel bookings and promoting tourism initiatives. IRCTC’s commitment extends beyond mere railway services, making it a key player in India’s travel and hospitality landscape.
In its pursuit of excellence, IRCTC continues to evolve and adapt to the dynamic demands of the travel industry. The corporation remains dedicated to providing quality catering and internet ticketing services, contributing significantly to the travel and tourism sector’s growth. With a focus on customer satisfaction and innovation, IRCTC stands as a vital force in shaping the travel experiences of millions and fostering the growth of tourism in India.
IRCTC Q3 Fy2024 Key Points and Summary:
- IRCTC’s Q3 FY24 net profit surged by 17.4% to Rs 300 crore compared to the same period last year.
- Revenue witnessed a significant increase of 21.8%, reaching Rs 1,118.3 crore for the quarter ending December.
- Earnings before interest, tax, depreciation, and amortization (EBIDTA) grew by 20.9% to Rs 394 crore.
- The EBIDTA margin slightly decreased to 35.2% from 35.5% year-on-year.
- Despite the margin dip, these results highlight IRCTC’s robust performance and efficient operational management.
Shareholding Pattern IRCTC
| Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | |
| Promoters + | 62.40% | 62.40% | 62.40% | 62.40% | 62.40% |
| FIIs + | 6.84% | 6.53% | 6.99% | 7.11% | 7.34% |
| DIIs + | 8.73% | 10.06% | 9.92% | 10.53% | 11.98% |
| Public + | 22.03% | 21.01% | 20.68% | 19.97% | 18.28% |
| No. of Shareholders | 21,61,327 | 21,28,348 | 20,80,264 | 20,26,798 | 19,28,851 |
IRCTC’s shareholding pattern reveals a stable and consistent distribution among various investor categories as of December 2022 to December 2023. The promoters maintain a dominant position with a steady 62.40% ownership throughout this period. This consistent holding indicates the promoters’ confidence in the company’s direction and long-term prospects.
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) exhibit notable but gradual fluctuations in their holdings. In December 2022, FIIs held 6.84%, which experienced a marginal decrease to 6.53% by March 2023, followed by a slight increase to 7.34% by December 2023. On the other hand, DIIs increased their stake from 8.73% in December 2022 to 11.98% in December 2023. These variations in institutional holdings suggest dynamic market sentiments and differing perspectives on IRCTC’s performance.
The public shareholding, representing retail and individual investors, witnessed a consistent decline from 22.03% in December 2022 to 18.28% by December 2023. This reduction in public ownership may be attributed to various factors, including profit booking, market trends, or shifts in investor preferences. A decreasing public shareholding could impact liquidity and trading dynamics.
The total number of shareholders also saw a decline over the analyzed period, decreasing from 21,61,327 in December 2022 to 19,28,851 by December 2023. This reduction might be indicative of changes in investor composition, such as institutional investors gaining prominence compared to individual shareholders.
In summary, IRCTC’s shareholding pattern illustrates a consistent promoter holding, slight fluctuations in institutional ownership, a decline in public shareholding, and a reduction in the overall number of shareholders. These dynamics reflect the evolving landscape of investor participation and confidence in IRCTC during the specified period.
IRCTC Share Price Target 2024 To 2030
IRCTC Share Price Target 2024
| When | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| April 2024 | ₹1,063.70 | ₹924.96 |
| May 2024 | ₹1,047.98 | ₹911.29 |
| June 2024 | ₹1,085.71 | ₹944.09 |
| July 2024 | ₹1,074.85 | ₹934.65 |
| August 2024 | ₹1,117.84 | ₹972.04 |
| September 2024 | ₹1,162.56 | ₹1,010.92 |
| October 2024 | ₹1,139.76 | ₹991.10 |
| November 2024 | ₹1,185.35 | ₹1,030.74 |
| December 2024 | ₹1,197.21 | ₹1,041.05 |
In April 2024, IRCTC is expected to see its stock fluctuate between ₹1,063.70 and ₹924.96. May’s forecast suggests prices ranging from ₹1,047.98 to ₹911.29. June is anticipated to bring prices between ₹1,085.71 and ₹944.09. July’s projection indicates prices varying from ₹1,074.85 to ₹934.65. August is expected to witness prices ranging from ₹1,117.84 to ₹972.04. September’s forecast suggests prices between ₹1,162.56 and ₹1,010.92. October is anticipated to see prices ranging from ₹1,139.76 to ₹991.10. November’s projection indicates prices varying from ₹1,185.35 to ₹1,030.74. Finally, December’s forecast suggests prices ranging from ₹1,197.21 to ₹1,041.05.
IRCTC Share Price Target 2025
| When | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2025 | ₹1,316.93 | ₹1,013.02 |
| February 2025 | ₹1,330.23 | ₹1,023.25 |
| March 2025 | ₹1,358.16 | ₹1,044.74 |
| April 2025 | ₹1,344.72 | ₹1,034.40 |
| May 2025 | ₹1,305.55 | ₹1,004.27 |
| June 2025 | ₹1,364.30 | ₹1,049.46 |
| July 2025 | ₹1,337.55 | ₹1,028.88 |
| August 2025 | ₹1,378.92 | ₹1,060.71 |
| September 2025 | ₹1,395.46 | ₹1,073.43 |
| October 2025 | ₹1,431.75 | ₹1,101.34 |
| November 2025 | ₹1,467.54 | ₹1,128.88 |
| December 2025 | ₹1,533.58 | ₹1,179.68 |
Throughout 2025, IRCTC’s stock prices are expected to fluctuate. In January, the maximum price is projected to reach ₹1,316.93, while the minimum price is anticipated to be ₹1,013.02. As the year progresses, fluctuations continue, with prices ranging between ₹1,330.23 and ₹1,023.25 in February, ₹1,358.16 and ₹1,044.74 in March, ₹1,344.72 and ₹1,034.40 in April, ₹1,305.55 and ₹1,004.27 in May, ₹1,364.30 and ₹1,049.46 in June, and ₹1,533.58 and ₹1,179.68 in December. These fluctuations reflect the dynamic nature of the stock market and the various factors influencing IRCTC’s performance. Investors should stay vigilant and adapt their strategies accordingly.
IRCTC Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹1,684.87 | ₹1,039.41 |
| 2027 | ₹1,733.35 | ₹1,143.35 |
| 2028 | ₹2,286.69 | ₹1,143.35 |
| 2029 | ₹1,979.82 | ₹989.91 |
| 2030 | ₹2,573.77 | ₹1,801.64 |
In the prospective trajectory for IRCTC’s share price spanning from 2026 to 2030, the anticipated range reflects potential market dynamics and strategic shifts:
- 2026: The expected range is ₹1,039.41 to ₹1,684.87, showcasing a notable spread that indicates a potential for market fluctuations, possibly influenced by industry trends and macroeconomic factors.
- 2027: The projected range widens as the market evolves, with an expected low of ₹1,143.35 and a high of 1,733.35. This suggests a potential for increased volatility or significant developments in the industry.
- 2028: A substantial surge is anticipated in 2028, with the expected range extending from ₹1,143.35 to ₹2,286.69. This significant spread may indicate transformative changes within the company or industry.
- 2029: The expected range for 2029 is ₹989.91 to ₹1,979.82, highlighting potential variability in the market conditions or strategic shifts that could impact the stock’s performance.
- 2030: The anticipated range for 2030 reflects a potentially wide spectrum, with a low of ₹1,801.64 and a high of ₹2,573.77. This may signal a culmination of long-term trends or significant developments.
These projections are contingent on various factors, including historical performance, industry trends, and macroeconomic conditions. The expected prices will evolve based on unfolding market dynamics, shaping IRCTC’s trajectory over the specified years. Investors should closely monitor developments for informed decision-making.
IRCTC ‘s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 1,870 | 2,264 | 777 | 1,879 | 3,541 | 4,080 |
| Expenses + | 1,487 | 1,562 | 589 | 1,005 | 2,265 | 2,652 |
| Operating Profit | 383 | 703 | 188 | 874 | 1,276 | 1,428 |
| OPM % | 20% | 31% | 24% | 47% | 36% | 35% |
| Other Income + | 126 | 77 | 124 | 72 | 148 | 131 |
| Interest | 2 | 10 | 8 | 11 | 16 | 17 |
| Depreciation | 29 | 40 | 46 | 49 | 54 | 53 |
| Profit before tax | 479 | 730 | 258 | 885 | 1,354 | 1,489 |
| Tax % | 36% | 30% | 27% | 26% | 26% | |
| Net Profit + | 309 | 513 | 187 | 660 | 1,006 | 1,106 |
| EPS in Rs | 3.86 | 6.41 | 2.34 | 8.24 | 12.57 | 13.81 |
The financial performance of the company has been a testament to its resilience and strategic acumen over the past five years. Beginning in March 2019 with sales of ₹1,870, the company embarked on a trajectory of consistent growth, culminating in sales of ₹4,080 in the trailing twelve months ending March 2023. This upward trend in revenue not only underscores the company’s ability to capture market opportunities but also reflects its agility in adapting to changing market dynamics and effectively executing its business strategies.
Moreover, the company’s operating profit has seen a remarkable ascent, increasing from ₹383 in March 2019 to ₹1,428 in the TTM period. This growth in operating profit highlights the company’s relentless focus on operational excellence, cost optimization, and driving efficiencies across its operations. Despite fluctuations, the operating profit margin (OPM) has remained healthy, fluctuating between 20% and 47%, indicative of the company’s ability to generate profits from its core business activities while maintaining a competitive edge in the market.
Furthermore, the company has demonstrated impressive profitability, with net profit witnessing substantial growth from ₹309 in March 2019 to ₹1,106 in the TTM period. This consistent growth in net profit underscores the company’s strong financial performance and its ability to generate sustainable returns for its shareholders. Additionally, the earnings per share (EPS) have surged from ₹3.86 in March 2019 to ₹13.81 in the TTM period, signaling an enhanced value proposition for investors and shareholders alike.
Overall, the financial metrics paint a compelling picture of a company that has not only weathered various market challenges but has also thrived, leveraging its strengths to drive growth, profitability, and shareholder value. With a solid foundation and a track record of success, the company is well-positioned to navigate future opportunities and challenges, driving continued growth and creating long-term value for its stakeholders.
FAQS
Question: When was IRCTC incorporated, and what unique authorization does it hold from the Indian government?
Answer: IRCTC was incorporated in 1999 and holds the exclusive authorization to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India.
Question: what is the share price target of IRCTC for 2025?
IRCTC is expected to reach ₹1,533.58 by the end of 2025.
Question: What is the current market capitalization and stock price of IRCTC?
Answer: IRCTC’s market capitalization is ₹84,612 Cr., and the current stock price is ₹1,058.
Question: With a high P/E ratio of 74.4, how does IRCTC justify this valuation, and what is its dividend yield?
Answer: IRCTC justifies its high P/E ratio based on strong financials. The dividend yield is 0.52 %.
Question: What are the Return on Capital Employed (ROCE) and Return on Equity (ROE) for IRCTC?
Answer: IRCTC’s ROCE is 59.2 %, and ROE is 45.4%.
Question: What is the 52-week high and low of IRCTC’s stock?
Answer: IRCTC’s stock has ranged from ₹1,069 (high) to ₹584 (low) in the last 52 weeks.
Question: What is the face value of IRCTC’s stock, and under which category of Central Public Sector Enterprises does it fall?
Answer: IRCTC’s face value is ₹2.00, and it is classified as a Mini Ratna (Category 1) Central Public Sector Enterprise.
Should one invest in IRCTC?
In conclusion, IRCTC’s financial performance over the past five years reflects its resilience and strategic acumen, underpinned by a commitment to delivering tangible value to its stakeholders. The company’s robust growth trajectory is evident in its impressive financial metrics: from a revenue surge from ₹1,870 crore to ₹4,080 crore, demonstrating its adeptness in capitalizing on market opportunities; an increase in operating profit from ₹383 crore to ₹1,428 crore, highlighting its focus on operational efficiency and cost optimization; and a substantial rise in net profit from ₹309 crore to ₹1,106 crore, affirming its ability to generate sustainable returns for shareholders. Furthermore, the significant growth in earnings per share (EPS) from ₹3.86 to ₹13.81 underscores the company’s commitment to enhancing shareholder value. With such strong financial performance, IRCTC is well-positioned to navigate future challenges and continue delivering long-term value to its investors, stakeholders, and the broader economy.
Leave a Reply