⚠ 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 | 48,508 Cr. | Current Price | 606 ₹ | High / Low | 820 ₹ |
| Stock P/E | 36.3 | Book Value | 53.2 ₹ | Dividend Yield | 1.32 % | ROCE | 49.0 % |
| ROE | 37.2 % | Face Value | 2.00 ₹ | DMA 50 | 658 ₹ | DMA 200 | 714 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.16 % | PAT Qtr | 338 Cr. | PAT Prev Qtr | 330 Cr. |
| RSI | 35.8 | MACD | -16.2 | Volume | 32,21,929 | Avg Vol 1Wk | 22,09,856 |
| Low price | 600 ₹ | High price | 820 ₹ | PEG Ratio | 1.48 | Debt to equity | 0.02 |
| 52w Index | 2.93 % | Qtr Profit Var | 9.69 % | EPS | 17.1 ₹ | Industry PE | 42.3 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 330 Cr. to 338 Cr. QoQ (+9.69%), showing steady earnings growth.
- Margins: ROE at 37.2% and ROCE at 49.0% are excellent, reflecting strong efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.02 indicates a virtually debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 1.32% provides moderate shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 36.3 vs Industry PE of 42.3 → slightly undervalued compared to peers.
- P/B Ratio: Current Price (606 ₹) / Book Value (53.2 ₹) ≈ 11.4, expensive relative to book value.
- PEG Ratio: 1.48 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near support (600 ₹) offers attractive entry zone compared to historical highs (820 ₹).
🏦 Business Model & Competitive Advantage
- IRCTC operates in online ticketing, catering, and tourism services, with monopoly-like status in railway ticketing.
- Competitive advantage lies in exclusive government contracts, strong brand recognition, and diversified revenue streams.
- Overall health is robust, with consistent profitability and minimal debt.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 590 ₹ – 610 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking stable PSU exposure with strong returns, but monitor valuation multiples and institutional sentiment.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROE (37.2%) and ROCE (49.0%).
- Steady PAT growth (+9.69% QoQ).
- Dividend yield of 1.32% provides moderate income.
⚠️ Limitation
- P/B ratio (11.4) indicates expensive valuation relative to book value.
- PEG ratio (1.48) suggests growth may not fully justify valuation.
- Technical weakness with price trading below DMA 50 (658 ₹) and DMA 200 (714 ₹).
📉 Company Negative News
- FII holdings decreased (-0.08%) and DII holdings decreased (-0.16%), showing reduced institutional confidence.
- RSI (35.8) and MACD (-16.2) indicate bearish technical momentum.
📈 Company Positive News
- PAT improved QoQ, showing consistent profitability.
- Dividend yield of 1.32% provides shareholder reward.
🏭 Industry
- Industry PE at 42.3 is higher than IRCTC’s PE, highlighting relative undervaluation.
- Travel and tourism sector growth driven by rising demand for digital ticketing and hospitality services.
- IRCTC benefits from monopoly in railway ticketing and strong government backing.
🔎 Conclusion
- IRCTC offers strong fundamentals with excellent return ratios and a debt-free balance sheet.
- Valuation is slightly undervalued compared to industry peers, but expensive relative to book value.
- Best suited for long-term investors entering near 590–610 ₹, with potential upside as digital adoption and tourism demand expand.