IRCTC Stock Price: Shares of Indian Railway Catering and Tourism Corporation saw a rise of about 5 per cent during the day on January 10 and the price reached a high of Rs 800.65. International brokerage Macquarie believes that IRCTC shares can go up to Rs 900. This is 15 percent more than the closing price of the stock on BSE on January 10. The brokerage has initiated coverage for the stock with an ‘Outperform’ rating. Due to this, buying in IRCTC shares increased.
At the end of trading, the stock settled at Rs 779.55 with a gain of 2 percent. The market cap of the company is at Rs 62,300 crore. According to BSE, the stock has fallen 23 percent in the last 6 months and 11 percent in the last 3 months. By the end of September 2024, the government held 62.40 percent stake in IRCTC.
IRCTC share price may double in the coming years
Macquarie said that IRCTC’s unmatched monopoly in e-ticketing and catering services of Indian Railways is its biggest strength. This makes it a leader in the journey of railway modernization of the country. According to the brokerage, India’s ambitious move towards railway modernization and increasing offering of premium trains could aid growth, giving the potential for IRCTC’s share price to double in the coming years.
The financial health of Indian Railway Catering and Tourism Corporation further strengthens its appeal. Its financials include strong free cash flow margins of 30 percent, and over 30 percent returns on both equity and invested capital. According to data available on BSE, the company’s standalone revenue in the July-September 2024 quarter stood at Rs 1,064 crore. Meanwhile, net profit was recorded at Rs 307.82 crore.
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As the sole authorized provider of catering services, online railway ticketing and packaged drinking water for Indian Railways, IRCTC has played a vital role in enhancing the efficiency and professionalism of railway operations.
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