Quick Facts about IRCTC
| Attribute | Detail |
|---|---|
| Latest Share Price | Approx. INR 958 |
| Market Cap | High, indicative of strong performance |
| Earnings Growth | 52.51% (1-Year) |
| Revenue Growth | 88.52% (1-Year) |
| Profit Margin | 28% |
| ROE | 46.26% (1-Year) |
| Dividend | ₹1.50 per share |
| Segments Contribution | Internet Ticketing (52%), Catering (32%) |
Source: Financial Platforms and Market Analysis
IRCTC’s Financial Performance: A Robust Journey
Indian Railway Catering and Tourism Corporation (IRCTC) has shown remarkable growth, with an impressive annual revenue of INR 32.42 billion and a net profit margin of 28%. This growth is largely attributed to its diversified revenue streams, including internet ticketing, catering, packaged drinking water (Rail Neer), and travel and tourism.
Segment-Wise Revenue Analysis:
- Internet Ticketing: The biggest contributor with over 80% margin.
- Catering: Contributes 32% of revenue, operating on a cost-plus model.
- Packaged Drinking Water: Accounts for 9% of revenue, sold at a subsidized rate.
- Travel and Tourism: Offers various rail tourism packages.
The company’s monopoly in online ticketing and catering for railways significantly contributes to its operational efficiency and profitability.
Growth Prospects and Strategic Moves
IRCTC stands as a market leader with over 70% share in online ticketing. Its growth is bolstered by:
- A robust customer base of over 60 million users.
- Diverse portfolio offering varied travel and tourism products.
- Strategic partnerships extending its service range.
- Forays into new areas like e-catering, luxury trains, and cruise tourism.
Recent innovations like IRCTC iPay and IRCTC Air have further strengthened its market position.
Valuation and Market Outlook
With a strong market position and continuous innovation, IRCTC is poised for further growth. Fundamental and relative analysis suggests a solid valuation based on its financial ratios and future cash flow projections. However, it’s crucial to note that the company is trading at a high PE and EV/EBITDA, indicating a potentially overvalued stock.
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