Indian Railway Catering & Tourism (NSEI:IRCTC) - Share price, News & Analysis

Q: What is the Fair Price of IRCTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IRCTC (₹579.2) is trading above our estimate of [[fair value]] (₹132.53)

IRCTC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

IRCTC Stock Overview

Indian Railway Catering & Tourism Corporation Limited provides catering and hospitality, Internet ticketing, travel and tourism, and packaged drinking water services in India.

Rewards

Earnings grew by 249.5% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Indian Railway Catering & Tourism Competitors

CMS Info Systems

NSEI:CMSINFO

₹35.4b

Enterprises

BSE:509220

₹4.1b

GKW

NSEI:GKWLIMITED

₹3.2b

L&T Technology Services

NSEI:LTTS

₹315.1b

Price History & Performance

Summary of all time highs, changes and price drops for Indian Railway Catering & Tourism
Historical stock prices
Current Share Price	₹579.20
52 Week High	₹1,279.26
52 Week Low	₹413.63
Beta	0.61
1 Month Change	-12.96%
3 Month Change	-30.44%
1 Year Change	40.54%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	297.94%

Recent News & Updates

Jun 28

Here's Why We Think Indian Railway Catering & Tourism (NSE:IRCTC) Is Well Worth Watching

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 07

Robust Earnings May Not Tell The Whole Story For Indian Railway Catering & Tourism (NSE:IRCTC)

Despite posting some strong earnings, the market for Indian Railway Catering & Tourism Corporation Limited's...

Shareholder Returns

	IRCTC	IN Commercial Services	IN Market
7D	-2.9%	-0.6%	0.6%
1Y	40.5%	33.5%	-0.3%

Return vs Industry: IRCTC exceeded the Indian Commercial Services industry which returned 33.5% over the past year.

Return vs Market: IRCTC exceeded the Indian Market which returned -0.3% over the past year.

Price Volatility

Is IRCTC's price volatile compared to industry and market?
IRCTC volatility
IRCTC Average Weekly Movement	4.9%
Commercial Services Industry Average Movement	6.9%
Market Average Movement	6.8%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.4%

Stable Share Price: IRCTC is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IRCTC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	1,372	Rajni Hasija	https://www.irctc.com

Indian Railway Catering & Tourism Corporation Limited provides catering and hospitality, Internet ticketing, travel and tourism, and packaged drinking water services in India. The company offers mobile catering services, including on-board catering services through pantry cars on trains; train side vending contracts on mail/express and superfast trains; and pantry cars re-designing and development services. It is also involved in the management of various static catering units of railways, such as refreshment rooms, Jan Ahaars, and cell kitchens, as well as base kitchens; and 6 executive lounges in the railway stations, as well as reclining sofa, meals in buffet service, Wi-Fi internet services, shower facilities, and others.

Indian Railway Catering & Tourism Fundamentals Summary

How do Indian Railway Catering & Tourism's earnings and revenue compare to its market cap?
IRCTC fundamental statistics
Market Cap	₹463.36b
Earnings (TTM)	₹6.64b
Revenue (TTM)	₹18.79b

69.8x

P/E Ratio

24.7x

P/S Ratio

Is IRCTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRCTC income statement (TTM)
Revenue	₹18.79b
Cost of Revenue	₹8.92b
Gross Profit	₹9.88b
Other Expenses	₹3.24b
Earnings	₹6.64b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.30
Gross Margin	52.55%
Net Profit Margin	35.31%
Debt/Equity Ratio	0%

How did IRCTC perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is IRCTC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRCTC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IRCTC. This is calculated by dividing IRCTC's market cap by their current preferred multiple.
What is IRCTC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹463.36b

IRCTC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	23.8x
Enterprise Value/EBITDA	50.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does IRCTC's PE Ratio compare to its peers?

IRCTC PE Ratio vs Peers

The above table shows the PE ratio for IRCTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.6x
CMSINFO CMS Info Systems	15.8x	19.6%	₹35.4b
509220 Enterprises	12.5x	n/a	₹4.1b
GKWLIMITED GKW	21.3x	n/a	₹3.2b
LTTS L&T Technology Services	32.9x	16.6%	₹315.1b
IRCTC Indian Railway Catering & Tourism	69.8x	n/a	₹463.4b

Forward PE

Price-To-Earnings vs Peers: IRCTC is expensive based on its Price-To-Earnings Ratio (69.8x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does IRCTC's PE Ratio compare vs other companies in the IN Commercial Services Industry?

Price-To-Earnings vs Industry: IRCTC is expensive based on its Price-To-Earnings Ratio (69.8x) compared to the Indian Commercial Services industry average (18.3x)

Price to Earnings Ratio vs Fair Ratio

What is IRCTC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRCTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	69.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IRCTC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of IRCTC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRCTC (₹579.2) is trading above our estimate of fair value (₹132.53)

Significantly Below Fair Value: IRCTC is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IRCTC's PEG Ratio to determine if it is good value.

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Future Growth

How is Indian Railway Catering & Tourism forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Indian Railway Catering & Tourism has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Check out Indian Railway Catering & Tourism's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Indian Railway Catering & Tourism competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Indian Railway Catering & Tourism performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IRCTC has a high level of non-cash earnings.

Growing Profit Margin: IRCTC's current net profit margins (35.3%) are higher than last year (24.3%).

Past Earnings Growth Analysis

Earnings Trend: IRCTC's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: IRCTC's earnings growth over the past year (249.5%) exceeds its 5-year average (15.4% per year).

Earnings vs Industry: IRCTC earnings growth over the past year (249.5%) exceeded the Commercial Services industry 14.5%.

Return on Equity

High ROE: IRCTC's Return on Equity (35.2%) is considered high.

Discover strong past performing companies

Financial Health

How is Indian Railway Catering & Tourism's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IRCTC's short term assets (₹33.3B) exceed its short term liabilities (₹17.8B).

Long Term Liabilities: IRCTC's short term assets (₹33.3B) exceed its long term liabilities (₹1.7B).

Debt to Equity History and Analysis

Debt Level: IRCTC is debt free.

Reducing Debt: IRCTC had no debt 5 years ago.

Debt Coverage: IRCTC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IRCTC has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Indian Railway Catering & Tourism current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IRCTC's dividend (0.52%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: IRCTC's dividend (0.52%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).

Stability and Growth of Payments

Stable Dividend: IRCTC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IRCTC's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.2%), IRCTC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.9%), IRCTC's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Rajni Hasija

1.42yrs

Tenure

₹7,280,284

Compensation

Ms. Rajni Hasija is Whole Time Director at Indian Railway Catering & Tourism Corporation Limited (formerly known as Indian Railway Catering and Tourism Corporation Ltd.). since May 18, 2018 and serves as i...

CEO Compensation Analysis

Compensation vs Market: Rajni's total compensation ($USD92.25K) is below average for companies of similar size in the Indian market ($USD893.34K).

Compensation vs Earnings: Rajni's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: IRCTC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: IRCTC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31