IRCTC a monopoly in Indian Railway; 531% returns in 5 years; Post COVID profit zooms to 494%; Should you invest ?
About Company
- Incorporated in 1999, IRCTC is a Mini Ratna (Category 1, Central Public Sector Enterprises )
- only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water
- More than 1.1mn tickets are booked per day on www.irctc.com
- Dominant market share of 80% in reserved Rail tickets, which shows that IRCTC has a monopoly in Indian Railways.
- Ticket bookings have increased from 7,200 per minute in 2014 to more than 26,000 tickets per minute in FY22
Key Ratios
| Market Cap | ₹ 77,896 Cr. |
| Current Price | ₹ 974 |
| High/Low | ₹ 1,148 / 614 |
| Stock PE | 63.7 |
| Industry PE | 27.6 |
| ROCE | 53.8 % |
| ROE | 40.4 % |
| PEG Ratio | 2.1 |
| Debt To Equity | 0.02 |
Revenue Breakup
There are total of 5 business division from which IRCTC makes money
- Catering and hospitality (45.8% )
- Internet ticketing (29.6 %)
- Packaged drinking water (7.2 %)
- State teertha (4 %)
- Tourism (13.4 %)
Financial Trend
Revenue
- Old Value (Mar-20): 2,264 crore
- New Value (Mar-24): 4,270 crore
- Revenue increased by approximately 88.57% from March 2020 to March 2024.
Net Profit
- Old Value (Mar-20): 513 crore
- New Value (Mar-24): 1,111 crore
- Net Profit increased by approximately 116.57% from March 2020 to March 2024.
Post COVID profit zooms to 494%
Net Profit
- Old Value (Jan-21): 187 crore
- New Value (Jan-24): 1,111 crore
- Net Profit increased by approximately 494.65% from January 2021 to January 2024. Due COVID it impacted the Net Profit but after COVID everything was pretty normal.
Shareholding Pattern
Change in Shareholding Pattern
| Mar-23 | Mar-24 | Change | |
| Promoters + | 62.40% | 62.40% | 0.00% |
| FIIs + | 6.53% | 8.08% | 1.55% |
| DIIs + | 10.06% | 12.72% | 2.66% |
| Public + | 21.01% | 16.79% | -4.22% |
Promoters
- Shareholding (Mar-23): 62.40%
- Shareholding (Mar-24): 62.40%
- Change: 0.00%
- Analysis: The shareholding of promoters has remained constant over the period, indicating no change in their stake.
Foreign Institutional Investors (FIIs)
- Shareholding (Mar-23): 6.53%
- Shareholding (Mar-24): 8.08%
- Change: +1.55%
- Analysis: The shareholding of FIIs has increased by 1.55 percentage points. This suggests increased interest and investment by foreign institutional investors.
Domestic Institutional Investors (DIIs)
- Shareholding (Mar-23): 10.06%
- Shareholding (Mar-24): 12.72%
- Change: +2.66%
- Analysis: The shareholding of DIIs has increased by 2.66 percentage points. This indicates a significant rise in investment by domestic institutional investors.
Public
- Shareholding (Mar-23): 21.01%
- Shareholding (Mar-24): 16.79%
- Change: -4.22%
- Analysis: The shareholding of the public has decreased by 4.22 percentage points. This reduction suggests that the public investors have sold or reduced their stakes during this period.
Stock Price Returns
1 Year Stock Price Returns
- IRCTC stock has given returns of 42.91% within 1 year
- If you would have invested 1 Lakhs in June 2023, then as on today June 2024 it would have become 1.42 Lakhs
5 Year Stock Price Returns
- IRCTC has generated 531% returns in 5 years
- It means if you would have invested 1 lakh in June 2020, then today it would have become 6.31 Lakhs on June 2024, this is where you can see the real power of compounding of money but for it you should have the patience to hold the particular company for a longer period of time.
Company Valuation
- Current PE: 67.5 (Blue Line)
- Median PE: 70.1 (Red Line)
- Analysis: As the current PE is less than the Median PE so we can say that IRCTC is undervalued we can see it from the graph as well.
- Please consider 1 thing as well before investing in such PSU stocks as majority of the controlling stake is with the Indian Government so any change in the government or change in the government may impact the stock price.
Should you Invest ?
- IRCTC being the monopoly in India so there is no competitor in the market which is a good thing for the company.
- If we look at the Revenue & Net Profit, Company is sitting on the all time high revenue & net profit.
- Company is consistently increasing its revenue & net profit
- IRCTC has a really strong fundamentals as company has 0 debt.
- Currently is company is undervalued so you can think of investing at the current market price of Rs 974
Check this out- Tata Motors a multibagger stock ?
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about IRCTC ltd.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
Business dicker Very well presented. Every quote was awesome and thanks for sharing the content. Keep sharing and keep motivating others.
Thanks for your words. It motivates me to move ahead.
Ny weekly I like the efforts you have put in this, regards for all the great content.
Thanks for your words. It motivates me to move ahead.
Mating Press Very well presented. Every quote was awesome and thanks for sharing the content. Keep sharing and keep motivating others.
Blue Techker Awesome! Its genuinely remarkable post, I have got much clear idea regarding from this post . Blue Techker
Aroma Sensei I truly appreciate your technique of writing a blog. I added it to my bookmark site list and will
whoah this blog is magnificent i love reading your posts. Keep up the good paintings! You recognize, a lot of individuals are looking round for this information, you could help them greatly.
Hello, Neat post. There is an issue together with your website in web explorer, could check this… IE nonetheless is the marketplace chief and a huge part of folks will leave out your magnificent writing because of this problem.
Good web site! I truly love how it is easy on my eyes and the data are well written. I’m wondering how I might be notified whenever a new post has been made. I have subscribed to your RSS feed which must do the trick! Have a nice day!