Indian Railway Catering and Tourism Corporation (IRCTC) is a government-owned company that operates in the hospitality and tourism sector. The company is best known for providing online ticket booking and catering services for Indian Railways.
IRCTC has a monopoly in the online ticket booking market, with around 60 million registered users and an average of 11,00,000 tickets booked daily.
IRCTC has become a popular stock among Indian investors due to its high growth potential and the monopoly it holds in the online ticket-booking market. The company has been expanding its business operations, launching new initiatives, and partnering with other companies to improve its services.
In this article, I will discuss IRCTC’s future price target and the factors that may affect its stock price in the coming years.
What is the Price Target of IRCTC Share by 2025
IRCTC stock is trading at around Rs. 610 per share. Currently, analysts have mixed opinions on IRCTC’s price target for 2025. According to the data from Yahoo Finance, the average price target for IRCTC’s stock by 2025 is INR 2250. Some analysts predict that the stock may reach INR 3000 by 2025, while others believe that it may stay around INR 2000.
Based on my analysis, I predict that IRCTC’s stock may reach INR 1800 to 2000 by 2025. This estimate is based on both fundamental and technical analysis.
The target price is based on various factors such as the company’s fundamental analysis, technical analysis, financial performance, industry trends, and market conditions. Let’s analyze these factors in detail
Fundamental Analysis of IRCTC
You need to analyze the company’s financial performance, growth opportunities, and market trends to evaluate the potential price target of IRCTC’s stock by 2025.
In the fiscal year 2021-2021, IRCTC’s revenue increased by 142% to INR 1879 crore compared to the previous fiscal year. The company’s net profit also increased by 255% to INR 664 crore. These results were driven by an increase in the number of train passengers and the company’s foray into the non-railway catering and tourism sectors.
The company has no debt by March 2020. But IRCTC’s debt component has increased to 79 crores by March 2021 & 107 crores by March 2022.
Similar to IRCTC, another popular stock in the hospitality sector is Zomato, you can read a detailed article on how to buy Zomato shares, where we’ll also highlight important points about Zomato company.
Technical Analysis of IRCTC Stock
IRCTC’s stock had been in a bullish trend till Oct 2021 and touches an all-time high at Rs 1093. After that stock followed a bearish trend till July 2022 to come to a level of Rs 600.
Currently stock is trading in a range-bound zone of Rs 600 to Rs 640 with resistance levels of Rs 650. The second resistance level for the stock would be Rs 740 to 750.
I believe that the stock could break out of this range in the coming months. If this happens, the stock could potentially reach the range of Rs 900 to Rs 1000.
The technical analysis of IRCTC stock price is not so positive, and the experts predict that the stock price will pick an uptrend once it breaks the current resistance levels.
Though IRCTC’s share price crossed Rs 1000, it is still not the most expensive share in the stock market, you can read our list of most expensive shares in India to know why those stocks are so expensive. That would help you understand their business.
Factors Affecting IRCTC’s Share Price by 2025
There are several factors that could affect IRCTC’s stock price in the coming years. Some of the key factors include
- Government policies and regulations: IRCTC is a government-owned company, and changes in government policies or regulations could have a significant impact on the company’s operations and financial performance. For example, changes to ticket pricing or restrictions on travel could affect IRCTC’s revenue and profitability.
- Competition: IRCTC operates in a highly competitive industry, and competition from other transportation and hospitality companies could affect its market share and revenue. Emerging competitors in the market could pose a threat to IRCTC’s growth prospects.
- Economic conditions: Economic conditions, both in India and globally, could affect IRCTC’s stock price in 2025. For example, a recession or economic downturn could reduce demand for travel and tourism, leading to lower revenue for IRCTC.
- Technological advancements: As technology continues to evolve, IRCTC will need to adapt and innovate to stay competitive. New technologies like high-speed trains or self-driving vehicles could disrupt the transportation industry and affect IRCTC’s market share and revenue.
- Infrastructure development: Investments in infrastructure development, such as new railway lines or upgrades to existing infrastructure, could benefit IRCTC’s operations and growth potential. Conversely, delays or setbacks in infrastructure development could have a negative impact on the company’s performance.
IRCTC’s Financial Performance In Recent Years
IRCTC has shown consistent growth in its revenue and profit over the past few years except for the fiscal year 2020-21. In the year 2021-22, the company’s revenue grew by 142% YoY to Rs. 1879 crore.
Net profit increased by 255% YoY to Rs. 664 crores. The company’s financial performance has been driven by the growing demand for train travel in India, which is expected to continue in the future
Last 5 Years Sales & Profit Growth
| Year | Sales Growth | Net Profit | EPS | Dividend Payout |
| 2021-22 | 142% | 664 | 8.3 | 42% |
| 2020-21 | -66% | 187 | 2.34 | 43% |
| 2019-20 | 21% | 513 | 6.41 | 39% |
| 2018-19 | 28% | 309 | 3.86 | 98% |
| 2017-18 | -4% | 221 | 11.03 | 21% |
IRCTC’s Growth Opportunities
IRCTC has several growth opportunities that could boost its performance in the coming years. The company has been expanding its e-catering services, which allow passengers to order food online and have it delivered to their seats on the train.
Additionally, the company has been developing new tourism packages and is expected to launch new trains in the future. Another growth opportunity for IRCTC is to open new lounges and waiting rooms at railway stations, which could create new revenue streams for the company.
Here are some potential areas where IRCTC could expand and grow its business:
- Tourism: IRCTC is already the largest tour operator in India, but there is still room for growth in the domestic tourism market. The company has been working to expand its tourism offerings and is currently offering packages to destinations outside of India as well.
- Food and Beverages: IRCTC has already made significant inroads in the food and beverage industry through its catering services on Indian railways. The company has been exploring new opportunities in this area, such as setting up food plazas at railway stations and offering ready-to-eat meals.
- Railways: IRCTC has been exploring opportunities to expand its operations within the Indian railway industry. For example, the company has recently been awarded a contract to operate two luxury tourist trains.
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Conclusion
IRCTC is a company with a lot of potential for growth and profitability in the coming years. However, its future share price will be influenced by a range of factors, including government policies, competition, economic conditions, technological advancements, and infrastructure development.
You should carefully evaluate these factors and stay informed about the latest news and trends in the transportation and hospitality industry. You should be mindful of the risks associated and do your own research before making any investment decisions.
FAQs
IRCTC stock carries some degree of risk. Some potential risks to consider include fluctuations in the stock market, changes in government policies or regulations, and competition from other companies in the travel and hospitality industry.
It’s important to carefully evaluate these risks before making an investment decision.
As with any investment decision, it’s important to do your own research and consider a variety of factors, such as the company’s financial performance, market trends, and potential growth opportunities.
It’s also important to have a well-diversified portfolio that includes a range of assets and investment strategies.
You can visit IRCTC’s investor relations website or refer to the company’s annual reports, which are available online.
Some factors that could influence IRCTC’s stock price in the coming years include industry and market trends, the company’s financial performance, and any major internal or external events.
The current consensus among analysts is that IRCTC’s share price will reach Rs. 1800 to Rs 2000 by 2025.
As of the time of writing, IRCTC’s share price is Rs. 610.
IRCTC has several growth opportunities, including the expansion of e-catering services, the development of new tourism packages, and the introduction of new trains.
IRCTC is a stable and growing company with several growth opportunities. However, as with any stock, there are risks involved, and investors should do their due diligence before investing.
