IRCTC shares soar 5% on positive outlook

The stock closed in the green at ₹779.50, up 2.06% on the National Stock Exchange (NSE).

Macquarie’s positive outlook

As per reports, Macquarie noted that IRCTC’s biggest strength is the monopoly position it holds in Indian railways’ e-ticketing and catering businesses, with a market share of 80% of the e-ticketing market.

The company has a 30% margin on free cash flow and a 30% return on capital employed and return on invested capital, which it achieved with a minimum amount of capex, the global brokerage said.

Macquarie projected IRCTC’s EBIT (Earnings Before Interest and Taxes) margin to be between 80% and 85% for its e-ticketing vertical, and expects its catering segment margin to range from 12% to 15%.

As the solely authorised e-ticketing platform, food caterer and packaged water provider for the Indian railways, IRCTC boasts a robust 30% free cash flow margin and returns exceeding 30% on both, invested capital (ROIC) and equity (ROE), the international brokerage highlighted.

Stock performance

The scrip closed at ₹763.80 on Thursday.

It slumped 1.29% over the past five days and 6.65% during the last month on the NSE. The stock tumbled 23.72% over the last six months and 17.22% on a one-year basis.

The company has a total market capitalisation of ₹62,880 crore as of January 10, 2025, according to the NSE.

Q2 results

In the second quarter of FY25, IRCTC witnessed a 4.5% growth in its net profit to ₹307.8 crore in Q2FY25 as compared to ₹294.7 crore in the year-ago period. Further, its total revenue soared 8.1% from ₹1,039 crore in Q2FY24 to ₹1,123 crore in the quarter-ended September.