In this article, we provide the predictions for IRCTC share price target for the years 2024, 2025, 2026, 2027, and 2030.
IRCTC (Indian Railway Catering and Tourism Corporation) is a prominent subsidiary of the Indian Railways, overseeing catering, tourism, and online ticketing operations.
IRCTC SHARE PRICE TARGET OVERVIEW
Founded in 1981, IRCTC became a public limited company in 2017 and made a successful debut on the NSE and BSE in October 2019, raising INR 6.45 billion ($86 million).
BONUS HISTORY
Over its history, IRCTC has given bonus shares to its shareholders eight times. The first bonus was in 1994 at a ratio of 1:1, and the latest was in 2018.
IRCTC SHARE PRICE TARGET 2024
Minimum Price Target: ₹875
Maximum Price Target: ₹938
Average Price Target: ₹906
IRCTC SHARE PRICE TARGET 2025
Minimum Price Target: ₹1,094
Maximum Price Target: ₹1,172
Average Price Target: ₹1,133
IRCTC SHARE PRICE TARGET 2026
Minimum Price Target: ₹1,367
Maximum Price Target: ₹1,465
Average Price Target: ₹1,416
IRCTC SHARE PRICE TARGET 2027
Minimum Price Target: ₹3,338
Maximum Price Target: ₹3,576
Average Price Target: ₹3,457
IRCTC SHARE PRICE TARGET 2032
Minimum Price Target: ₹5,215
Maximum Price Target: ₹5,588
Average Price Target: ₹5,402
IRCTC FINANCIAL PERFORMANCE
IRCTC has exhibited robust financial performance, driven by increased demand for its online ticketing and catering services in the railway sector.
Q4 FY23 HIGHLIGHTS
Revenue: INR 8.96 billion ($120 million), a 28% YoY increase.
EBITDA: INR 3.67 billion ($49 million), growing 35% YoY.
EBITDA Margin: 41%, up 2 percentage points YoY.
Net Profit: INR 2.54 billion ($34 million), up 31% YoY.
FY23 ANNUAL PERFORMANCE
Annual Revenue: INR 32.42 billion ($433 million), a 25% YoY increase.
Annual EBITDA: INR 13.24 billion ($177 million), rising 29% YoY.
Annual Net Profit: INR 9.13 billion ($122 million), a 27% YoY increase.
IRCTC REVENUE BREAKDOWN BY SEGMENT
Internet Ticketing: 52% of total revenue with a high margin of over 80%.
Catering: 32% of revenue, operating on a costplus model with railways.
Packaged Drinking Water (Rail Neer): 9% of revenue, sold at a subsidized rate of INR 15 per liter.
Travel and Tourism: 7% of revenue, offering various rail tourism packages.
IRCTC’s financial success is attributed to its operational efficiency and profitability, underscored by its monopoly in online ticketing and catering for railways.
STRATEGIC POSITIONING
IRCTC is strategically positioned to capitalize on India’s rapidly growing online ticketing and catering markets.
According to CRISIL Research, the online ticketing market is anticipated to grow at a 20% CAGR, reaching INR 144 billion by FY24.
Simultaneously, the catering market could experience a 15% CAGR, reaching INR 55 billion by the same period.
KEY GROWTH POINTS
Dominant Market Share:
IRCTC holds over 70% in online ticketing and more than 90% in railway catering services, showcasing its market dominance.
Strong Customer Base:
With over 60 million registered users and a network of over 5000 water plants and vending machines, IRCTC has a solid foundation to leverage.
Diverse Portfolio:
Offering a wide range of travel and tourism products and services enhances IRCTC’s appeal to various customer segments.
Robust Technology Platform:
Its technology infrastructure supports seamless booking, payment, and service delivery, highlighting its operational efficiency.
Strategic Expansion and Innovation:
IRCTC continually expands its presence and enhances offerings through initiatives like IRCTC iPay, IRCTC Air, IRCTC eWallet, IRCTC Loyalty Program, and acquisitions like Nivaasa Kuteer Pvt Ltd and Bharat BPO Services Ltd.
Partnerships:
Collaborations with Ola, Uber, Yatra, MakeMyTrip, Cleartrip, and SBI Card extend service range to cab bookings, hotel reservations, holiday packages, and cobranded credit cards.
Future Plans:
IRCTC aims to venture into new areas such as ecatering, executive lounges, luxury trains, cruise tourism, and potentially international markets.
IRCTC’s multifaceted growth strategy, strong market position, and continuous innovation position it favorably to become a comprehensive solution for the travel needs of railway passengers in India and beyond.
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IRCTC: VALUATION AND TARGET PRICE
Fundamental Analysis
IRCTC’s valuation is based on fundamental and relative analyses. The DCF model estimates the intrinsic value of IRCTC’s shares based on future cash flows, resulting in a target of INR 826.4 per share, implying a 31% upside potential.
Relative Analysis
A peer group comparison using key financial ratios estimates the fair value of IRCTC’s shares at INR 759.6 per share, indicating a 20% upside potential. Peer companies include MakeMyTrip, Yatra Online, Thomas Cook India, and Cox & Kings India.
IRCTC: TECHNICAL ANALYSIS
Current Position
IRCTC’s stock exhibits a volatile sideways trend since its listing in October 2019, oscillating between INR 557.10 and INR 774.90. The stock forms a broadening wedge pattern, indicating investor uncertainty.
Technical Indicators
Trading near the lower end of the wedge.
Trading above the 50day and 200day SMAs, with the 50day SMA above the 200day SMA, indicating a positive longterm trend.
RSI near 50, indicating neutral momentum.
MACD below zero but above its signal line, indicating a bullish crossover.
ADX below 25, indicating a weak trend.
OBV is flat, indicating no clear trend in volume.
IRCTC SHARE PRICE TARGET CONCLUSION
The IRCTC share price target holds significant intrigue for investors. With promising growth prospects, robust financials, and strategic initiatives, IRCTC is positioned favorably in the market.
However, market conditions and external factors can influence share prices, so thorough research and consideration of expert advice are essential for making informed investment decisions.
Please note that this blog post is purely informational and doesn’t recommend buying stocks. Consult your financial advisor before making any investment decisions.
The future outlook for IRCTC’s share prices appears promising, with consistent growth projected until 2032.
The company’s sound financial performance and diversified revenue streams position it as a key player in the railway service sector.