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

1. Catering and hospitality  (45.8% )
2. Internet ticketing (29.6 %)
3. Packaged drinking water (7.2 %)
4. State teertha (4 %)
5. 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.
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