The IIFL Securities Report: Buy Indian Rail Tour Corp - April 01

IIFL Securities has initiated coverage on Indian Rail Tour Corporation (IRCTC) with a 'buy' recommendation, targeting a price of Rs 960. The stock is currently trading at Rs 943, presenting a potential upside of 1.8%. IIFL Securities believes IRCTC is well-positioned to benefit from the recovery in domestic tourism, driven by pent-up demand and the government's focus on promoting domestic travel.

About Indian Rail Tour Corp:

Indian Rail Tour Corp (IRCTC), a Government of India enterprise under the Ministry of Railways, is the only entity authorized by Indian Railways to provide online railway tickets and catering services. IRCTC is a diversified travel and tourism company that offers a wide range of travel-related services, including rail, air, and bus ticketing, tour packages, hotel bookings, and car rentals. The company also provides e-catering services, allowing passengers to order meals from a wide variety of restaurants and have them delivered to their seats on trains.

52 Week Price Trend:

Indian Rail Tour Corp (IRCTC) is currently trading at Rs 943, indicating a notable decline from its 52-week high of Rs 1049.75. However, it remains well above its 52-week low of Rs 557.1, suggesting a positive overall trend. This indicates that the stock has experienced volatility in the past year but has maintained a relatively high valuation. Investors should carefully consider IRCTC's financial performance and market conditions before making any investment decisions.

Stratzy's MOST Analysis:

IRCTC has been rated AAA by Stratzy's MOST framework, indicating a low fundamental risk. This reflects the company's strong management, positive outlook, safety, and favorable trend. IRCTC's effective management team has guided the company's growth and expansion. The company benefits from a supportive industry outlook, driven by increasing demand for rail travel. IRCTC's safety record and financial stability contribute to its overall strength. Furthermore, the company's positive trend in revenue and profitability suggests continued growth potential.

Company's Fundamentals:

Indian Rail Tour Corp (IRCTC) is a government-owned company that provides ticketing, catering, and tourism services for the Indian Railways network. As of its listing on the National Stock Exchange (NSE), IRCTC has a stock price-to-earnings (PE) ratio of 68.17, indicating that investors are willing to pay a premium for its earnings. The company's price-to-book (PB) ratio of 27.22 suggests that its market value is significantly above its book value. Despite its high valuations, IRCTC pays a modest dividend yield of 0.57%, which reflects its focus on growth and reinvestment rather than dividend payments.

Fundamental and Technical information provided in this blog were last updated on 30 Mar, 2024

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