IRCTC's Quality Grade Change Reflects Strong Financial Metrics Amid Mixed Performance

Indian Railway Catering & Tourism Corporation (IRCTC) has recently undergone an evaluation revision, reflecting its current standing in the Tour and Travel Related Services industry. The company has demonstrated notable financial metrics, including a five-year sales growth of 15.21% and an EBIT growth of 19.16%. Its EBIT to interest ratio averages at 82.06, indicating a strong ability to cover interest expenses, while the debt to EBITDA ratio remains low at 0.13, showcasing a manageable debt level.
IRCTC's net debt to equity ratio is at 0.00, suggesting no reliance on debt financing, which is complemented by a robust return on capital employed (ROCE) of 429.76% and a return on equity (ROE) of 34.14%. The company's dividend payout ratio stands at 46.79%, reflecting a commitment to returning value to shareholders.

In comparison to its peers, IRCTC's performance has been mixed. Over the past year, the stock has underperformed relative to the Sensex, with a return of -25.72% compared to the index's 9.57%. However, over a five-year period, IRCTC has outperformed the Sensex with a return of 174.74%, highlighting its potential in the long term.