Indian Railway Catering & Tourism Corporation Ltd (IRCTC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Voler Car

I R C T C

BLS Internat.

Yatra Online

TBO Tek

Le Travenues

Thomas Cook (I)

Intl. Travel Hse

Easy Trip Plann.

Wise Travel

Party Cruisers

Why is Indian Railway Catering & Tourism Corporation Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 32.71%

Healthy long term growth as Net Sales has grown by an annual rate of 37.56% and Operating profit at 52.30%
Company has a low Debt to Equity ratio (avg) at 0 times

Positive results in Dec 25

INVENTORY TURNOVER RATIO(HY) Highest at 427.33 times
DEBTORS TURNOVER RATIO(HY) Highest at 3.10 times
NET SALES(Q) At Rs 1,449.47 cr has Grown at 20.8% (vs previous 4Q average)

With ROE of 31.3, it has a Very Expensive valuation with a 9.9 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.86%, its profits have risen by 11.7% ; the PEG ratio of the company is 2.6

High Institutional Holdings at 21.21%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -26.86% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to I R C T C should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is I R C T C for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

I R C T C

-26.86%

-1.27

21.23%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

37.56%

EBIT Growth (5y)

52.30%

EBIT to Interest (avg)

85.72

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

1.17

Tax Ratio

25.02%

Dividend Payout Ratio

46.79%

Pledged Shares

Institutional Holding

21.21%

ROCE (avg)

429.00%

ROE (avg)

32.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.93

EV to EBIT

24.58

EV to EBITDA

23.87

EV to Capital Employed

28.37

EV to Sales

7.85

PEG Ratio

2.63

Dividend Yield

1.80%

ROCE (Latest)

111.83%

ROE (Latest)

31.29%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 427.33 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.10 times

NET SALES(Q)

At Rs 1,449.47 cr has Grown at 20.8% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 465.44 cr.

PBT LESS OI(Q)

Highest at Rs 448.54 cr.

PAT(Q)

Highest at Rs 386.21 cr.

EPS(Q)

Highest at Rs 4.93

-2What is not working for the Company

ROCE(HY)

Lowest at 41.39%

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Here's what is working for I R C T C

Inventory Turnover Ratio- Half Yearly

Highest at 427.33 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales - Quarterly

Highest at Rs 1,449.47 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,449.47 cr has Grown at 20.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,199.72 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 465.44 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 448.54 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 386.21 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 4.93

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 3.10 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for I R C T C

Non Operating Income - Quarterly

Highest at Rs 69.76 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income