IRCTC is a major player in India in the travel and tourism industry, providing services in ticketing, catering, and tourism. The recent share price of IRCTC has brought some market focus, especially due to the latest financial report and performance of the share or stock performance.
As of November 5, 2024, IRCTC's share price reflects significant fluctuations. The stock recorded a high of ₹828.40 and a low of ₹792.10 during the trading day. In a broader context, the stock has seen a 52-week high of ₹1,138.90 and a low of ₹664.40. These figures highlight the volatility and potential opportunities within IRCTC's stock performance.
Understanding the fundamental aspects of IRCTC would be able to express the market valuation of that company and its effective working mechanism. The market capitalization of the company is ₹65,752 crore, and an enterprise value of ₹63,489.35 crore. The outstanding number of shares is 80 crore, and the ratio that can be calculated will give a P/E ratio of 55.41 and a P/B of 18.59. The company has a face value of ₹2 and offers 0.8% in the form of dividend yield.
IRCTC also gives a good profit perspective because it has an EPS of ₹14.83. There is a healthy financial aspect depicted through book value at ₹44.22 and cash reserves at ₹2,262.65 crores. It is also in a good liquidity position. More surprisingly, it has no debt, and this is a great advantage for this company against many competitors.
IRCTC has also given promoter holding at 62.4%. The holding is quite large and implies that the founders of the company and its management do have a stake in the successful performance of the organization. Besides this, IRCTC has also shown solid financial growth with a sales growth rate of 20.58%, a return on equity of 38.93%, and a return on capital employed of 53.08%. A profit growth rate of 10.48% is also reported by the company.
IRCTC has made the Q2 numbers public, which gave further light to its corporate performance. The consolidated net profit for the firm had increased 4.5% with ₹307.8 crore as against ₹294.7 crore in the same quarter last year. Revenue from operation had surged to ₹1,064 crores, 7.3% higher than the last fiscal's ₹992 crores. Catering revenues went up 11.5% year-on-year to ₹482 crore, while ticketing services increased by 13% to ₹371 crore. The tourism segment was a drag, where revenues went down by 21% to ₹125 crore.
The selling, general, and administrative expenses grew by 3.28% QoQ and 20.48% YoY. This upward movement of operational costs is something to be questioned in terms of efficiency going forward. Operating income declined by 0.98% QoQ but increased by 2.02% YoY. The diluted normalized EPS for Q2 came at ₹3.85, which is up 4.52% from the year ago.
Despite this, IRCTC's gross revenue for the first half of FY25 increased 10.24% year on year to ₹2,292 crore against ₹2,079 crore in the comparable period last year. This, again, points to a growth trajectory even with operational headwinds.
The overall market sentiment against IRCTC continues to be cautiously negative. The stock has lost -0.59% in the week so far and has declined by 20.15% in six months. Year-to-date, it is down 8.03%.
Analyst recommendations are mixed and comprise two buy strong, one sell, a hold, and only one sell strong. Consensus stands at a sell following concerns voiced about current and future trends after the company's performance in the most recent quarter, reducing the previous neutral rating.
IRCTC share price analysis shows that the stocks are highly dynamic and have volatility in the sense they are affected by operational performances and market sentiments. The business has strong revenue growth and healthy profits. This is, however, alongside some challenges facing certain sub-segments of the tourist industry and increasing operating costs. Investors should consider that.
The tracking of IRCTC would be an intelligent move by the company in negotiating the shift within the travel and tourism industries. Its performance would then become a key consideration in making a savvy investment decisio