IRCTC Share Price Target 2024 to 2025

Indian Railway Catering and Tourism Corporation (IRCTC) is a government-owned company in the hospitality and tourism sector.

IRCTC has a monopoly in online railway ticket booking. More than 60 million users registered on IRCTC, and an average of 11,00,000 tickets are booked daily. 

IRCTC has become a popular stock among Indian investors due to its high growth potential and monopoly in the online ticket-booking market.

Let’s look at the IRCTC’s future price target and the factors that may affect the stock price in the coming years.

What is the Price Target of IRCTC Share by 2025

IRCTC current price chart

IRCTC stock is trading at around Rs. 1018 per share. Currently, analysts have mixed opinions on IRCTC’s price target for 2025. According to Yahoo Finance data, 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 it may stay around INR 2000.

Based on my analysis, 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 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

To evaluate the potential price target of IRCTC’s stock by 2025, you need to analyze the company’s financial performance, growth opportunities, and market trends. 

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 increased by 255% to INR 664 crore. These results were driven by increased train passengers and the company’s foray into the non-railway catering and tourism sectors. 

Irctc profit and loss

The company had no debt by March 2020. However, IRCTC’s debt component increased to 79 crores by March 2021 and 107 crores by March 2022.

Technical Analysis of IRCTC Stock 

IRCTC’s stock was in a bullish trend until October 2021, when it touched an all-time high of Rs 1093. After that, it followed a bearish trend until July 2022, when it reached a level of Rs 600. 

irctc oct 2021 price

The stock trades in a range-bound zone of Rs 900 to Rs 1050, with resistance levels of Rs 1050. The second resistance level for the stock would be Rs 1110 to 1120. 

The stock could break out of this range in the coming months and reach Rs 1300. 

The technical analysis of the IRCTC stock price is not very optimistic. Experts predict that the stock price will pick an uptrend once it breaks the current resistance levels. 

Factors Affecting IRCTC’s Share Price by 2025

Several factors could affect IRCTC’s stock price in the coming years. Some of the critical factors include

  1. Government policies and regulations: IRCTC is a government-owned company, and changes in government policies or regulations could significantly impact the company’s operations and financial performance. For example, ticket pricing changes or travel restrictions could affect IRCTC’s revenue and profitability.
  2. 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 also threaten IRCTC’s growth prospects.
  3. Economic conditions: Financial conditions 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.
  4. Technological advancements: As technology evolves, IRCTC must 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.
  5. 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 hurt the company’s performance.

IRCTC’s Financial Performance In Recent Years

IRCTC has consistently grown its revenue and profit over the past few years except for the fiscal year 2020-21. In 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

YearSales GrowthNet ProfitEPSDividend Payout
2021-22142%6648.342%
2020-21-66%1872.3443%
2019-2021%5136.4139%
2018-1928%3093.8698%
2017-18-4%22111.0321%

IRCTC’s Growth Opportunities

IRCTC has several growth opportunities to boost its performance in the coming years.

IRCTC has started providing e-catering services, which allow you to order food online and have it delivered to your train seat.

Additionally, the company has been developing new tourism packages and is expected to launch new trains.

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.
  • Food and Beverages: IRCTC has made significant inroads in the food and beverage industry through its catering services on Indian railways. This includes 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.

Conclusion

IRCTC has excellent growth potential in the coming years. However, government policies, competition, economic conditions, technological advancements, and infrastructure development can influence the future share price.

You should carefully evaluate these factors and stay informed about the latest news and trends in the transportation and hospitality industry.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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