⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IRCTC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | IRCTC | Market Cap | 43,208 Cr. | Current Price | 540 ₹ | High / Low | 820 ₹ |
| Stock P/E | 31.2 | Book Value | 53.2 ₹ | Dividend Yield | 1.57 % | ROCE | 49.0 % |
| ROE | 37.2 % | Face Value | 2.00 ₹ | DMA 50 | 600 ₹ | DMA 200 | 679 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.16 % | PAT Qtr | 387 Cr. | PAT Prev Qtr | 338 Cr. |
| RSI | 35.1 | MACD | -24.7 | Volume | 24,72,854 | Avg Vol 1Wk | 23,26,426 |
| Low price | 518 ₹ | High price | 820 ₹ | PEG Ratio | 1.27 | Debt to equity | 0.02 |
| 52w Index | 7.27 % | Qtr Profit Var | 13.3 % | EPS | 17.8 ₹ | Industry PE | 40.3 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹338 Cr. to ₹387 Cr. (QoQ), showing healthy earnings growth.
- Margins: ROE at 37.2% and ROCE at 49.0% are excellent, reflecting strong profitability and capital efficiency.
- Debt: Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet.
- Cash Flow: EPS of ₹17.8 is solid, supporting shareholder value.
💹 Valuation Metrics
- P/E Ratio: 31.2 vs Industry PE of 40.3 → undervalued compared to peers.
- P/B Ratio: Price ₹540 vs Book Value ₹53.2 → trading at a steep premium, reflecting investor optimism.
- PEG Ratio: 1.27 → suggests valuation is slightly expensive relative to growth.
- Intrinsic Value: Strong fundamentals and undervalued P/E make IRCTC attractive for long-term investors.
🏢 Business Model & Competitive Advantage
- IRCTC operates in online ticketing, catering, and tourism services under Indian Railways.
- Competitive advantage lies in monopoly-like position in railway ticketing and strong brand recognition.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹520–560 range looks attractive given undervaluation relative to industry PE.
- Long-Term Holding: Strong candidate for long-term portfolios due to debt-free status, high ROE/ROCE, and monopoly business model.
✅ Positive
- Debt-free balance sheet.
- Excellent ROE (37.2%) and ROCE (49.0%).
- Undervalued compared to industry PE.
- Strong PAT growth (13.3% QoQ).
⚠️ Limitation
- PEG ratio (1.27) suggests valuation is slightly expensive relative to growth.
- Stock trading below DMA 50 & DMA 200, indicating bearish technical trend.
- EPS of ₹17.8 is modest relative to price.
📉 Company Negative News
- FII holdings decreased (-0.08%).
- DII holdings decreased (-0.16%).
- Stock corrected from high of ₹820 to current ₹540.
📈 Company Positive News
- Quarterly PAT growth of 13.3% shows steady momentum.
- Dividend yield of 1.57% provides income support.
🏦 Industry
- Industry PE at 40.3 highlights sector trades at higher multiples than IRCTC.
- Tourism and travel sector growth supported by rising demand for rail travel and hospitality services.
🔎 Conclusion
- IRCTC is fundamentally strong with excellent ROE/ROCE, debt-free status, and monopoly advantage in railway ticketing.
- Entry around ₹520–560 is favorable for long-term investors.
- Strong long-term holding potential given business model and undervaluation relative to peers, but monitor institutional flows and technical weakness.