Best Stocks to Buy Today : IIFL Securities's call on Indian Rail Tour Corp - May 17

IIFL Securities recommends buying Indian Rail Tour Corp (IRCTC) with a target price of Rs 1125, citing its strong fundamentals and growth potential. The company has benefited from the resumption of passenger train services and is expected to gain from the increasing demand for online travel bookings. Its robust online platform and tie-ups with IRCTC Catering and Tourism Corporation (IRCTC CTC) provide it with a competitive advantage. At its current market price of Rs 1081.7, IRCTC offers a potential upside of approximately 4%.

About Indian Rail Tour Corp:

Indian Rail Tour Corp. Ltd. (IRCTC) is a public sector undertaking under the Ministry of Railways, Government of India. It is responsible for providing a range of rail-related services, including online ticket booking, catering, rail travel packages, and tourism services. IRCTC operates through four segments: Internet Ticketing, Catering, Tourism and other services including manufacture and supply of packaged drinking water. The company's online ticket booking platform, IRCTC's website and mobile apps, is the largest online travel platform in India. IRCTC also operates a chain of food plazas and restaurants at railway stations and other locations.

52 Week Price Trend:

Indian Rail Tour Corp (IRCTC) is trading at Rs 1081.7, within the 52-week range of Rs 557.1 to Rs 1049.75. The stock has gained significantly from its low, offering investors a potential return of over 92%. However, it remains below its recent high, suggesting there may still be room for further growth. Investors should carefully consider the company's fundamentals and market conditions before making any investment decisions. While IRCTC is a dominant player in the Indian railway catering and tourism sector, competition and regulatory changes could pose risks to its future performance.

Stratzy's MOST Analysis:

IRCTC's impressive AAA rating from Stratzy's MOST framework signifies its strong fundamentals across various parameters. The framework evaluates management effectiveness, growth prospects, financial stability, and market trends. IRCTC's high scores in each pillar indicate its sound management practices, positive outlook, solid balance sheet, and sustained growth trajectory. This AAA rating suggests that IRCTC possesses low fundamental risks, making it an attractive investment opportunity.

Company's Fundamentals:

Indian Rail Tour Corp (IRCTC) is a state-owned company listed on the National Stock Exchange (NSE) of India. As of today, the company's stock is trading at a price-to-earnings (PE) ratio of 68.17, indicating that investors are willing to pay 68.17 times the company's annual earnings per share. IRCTC's price-to-book (PB) ratio stands at 27.22, implying that the market value of the company's assets is 27.22 times their book value. Despite its high valuations, IRCTC offers a dividend yield of only 0.57%, which may not be attractive to income-oriented investors.

Fundamental and Technical information provided in this blog were last updated on 17 May, 2024

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