IRCTC Share Price Target for Tomorrow, 2023, 2024, 2025, 2026, 2030 and Long Term

IRCTC (Indian Railway Catering and Tourism Corporation) is a subsidiary of the Indian Railways that handles the catering, tourism, and online ticketing operations of the railways. In this article, we will look at the IRCTC share price target 2023, 2024, 2025, 2026, and 2030.

IRTCTC also offers other services such as e-catering, executive lounges, air ticketing, hotel bookings, rail neer (packaged drinking water), and rail tourism packages.

IRCTC was incorporated in 1999 and became a public limited company in 2017. It went public in October 2019, raising INR 6.45 billion ($86 million) in one of the most successful IPOs in India’s history.

IRCTC’s shares were listed on the NSE and BSE at a premium of 101% over the issue price of INR 320 per share. 

As of July 28, 2023, IRCTC’s share price was INR 630.65, with a market capitalization of INR 495.6 billion ($6.6 billion).

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IRCTC Share Price Target 2023, 2024, 2025, 2027, and 2030

IRCTC Share Price Target 2023

For the year 2023, the IRCTC share price targets vary based on different case scenarios. In the worst-case scenario, the share price is expected to reach ₹700, while in the best-case scenario, the share price is predicted to touch ₹750.

IRCTC Share Price Target 2024

For the year 2024, the IRCTC share price targets have been projected. In a worst-case scenario, the share price is anticipated to reach ₹875. On the other hand, in the best-case scenario, the share price is estimated to climb to ₹938.

IRCTC Share Price Target 2025

For the year 2025, the projected share price targets for IRCTC are as follows: In a pessimistic, worst-case scenario, the share price is expected to hit ₹1094. Conversely, in an optimistic, best-case scenario, the share price is anticipated to reach ₹1172.

IRCTC: Financial Performance

IRCTC has been growing steadily in terms of revenue and profitability, driven by the increasing demand for online ticketing and catering services from railway passengers.

According to its latest quarterly results for Q4 FY23, IRCTC reported:

• A revenue of INR 8.96 billion ($120 million), up by 28% year-on-year (YoY) and 12% quarter-on-quarter (QoQ).
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) of INR 3.67 billion ($49 million), up by 35% YoY and 16% QoQ.
• An EBITDA margin of 41%, up by 2 percentage points YoY and 1 percentage point QoQ.
• A net profit of INR 2.54 billion ($34 million), up by 31% YoY and 14% QoQ.
• A net profit margin of 28%, up by 1 percentage point YoY and flat QoQ.

IRCTC’s annual performance for FY23 was also impressive, as it reported:

• A revenue of INR 32.42 billion ($433 million), up by 25% YoY.
• An EBITDA of INR 13.24 billion ($177 million), up by 29% YoY.
• An EBITDA margin of 41%, up by 1 percentage point YoY.
• A net profit of INR 9.13 billion ($122 million), up by 27% YoY.
• A net profit margin of 28%, up by 1 percentage point YoY.

IRCTC’s financial performance reflects its strong operational efficiency and profitability, as it benefits from its monopoly position in online ticketing and catering services for the railways.

IRCTC’s revenue is mainly derived from four segments: internet ticketing (52%), catering (32%), packaged drinking water (9%), and travel and tourism (7%).

IRCTC’s internet ticketing segment has a high margin of over 80%, as it charges a convenience fee of INR 15-30 per ticket from the passengers. IRCTC’s catering segment has a margin of around 20%, as it operates on a cost-plus model with the railways.

IRCTC’s packaged drinking water segment has a margin of around 15%, as it sells rail neer at a subsidized rate of INR 15 per liter to the passengers. 

IRCTC’s travel and tourism segment has a margin of around 10%, as it offers various rail tourism packages to domestic and international destinations.

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IRCTC: Growth Prospects

IRCTC has a huge opportunity to grow its business in India, as the online ticketing and catering markets are still underpenetrated and have strong growth potential.

According to CRISIL Research, the online ticketing market in India is expected to grow at a compound annual growth rate (CAGR) of 20% from INR 58 billion in FY19 to INR 144 billion in FY24, while the catering market is expected to grow at a CAGR of 15% from INR 28 billion in FY19 to INR 55 billion in FY24.

IRCTC is well-positioned to capture this opportunity, as it has a dominant market share of over 70% in online ticketing and over 90% in catering services for the railways.

It also has a loyal customer base of over 60 million registered users, a wide network of over 5000 water plants and vending machines, and a diversified portfolio of travel and tourism products and services.

IRCTC also has a strong technology platform that enables seamless booking, payment, and delivery of its services.

IRCTC has been investing heavily in expanding its presence, enhancing its offerings, and acquiring strategic assets to achieve its vision of becoming a one-stop solution for all travel needs of railway passengers.

Some of its recent initiatives by IRCTC include:

• Launching IRCTC iPay, an exclusive payment gateway that offers multiple payment options and faster refunds for online ticketing transactions.
• Launching IRCTC Air, an online platform that offers air ticketing services at competitive prices and convenience fee waivers for railway passengers.
• Launching IRCTC eWallet, a prepaid account that allows users to deposit money and use it for online ticketing transactions.
• Launching IRCTC Loyalty Program, a reward scheme that offers points and benefits for frequent users of IRCTC’s services.
• Acquiring Nivaasa Kuteer Pvt Ltd, a company that owns and operates budget hotels under the brand name “Ixora”.
• Acquiring Bharat BPO Services Ltd, a company that provides call center and back office services to various sectors including railways.
• Partnering with Ola, Uber, Yatra, MakeMyTrip, Cleartrip, etc., to offer cab booking, hotel booking, holiday packages, etc., on IRCTC’s platform.
• Partnering with SBI Card, to launch co-branded credit cards that offer discounts and rewards for using IRCTC’s services.

IRCTC also has plans to enter new segments such as e-catering, executive lounges, luxury trains, cruise tourism, etc., as well as explore international expansion in the future.

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IRCTC: Valuation and Target Price

IRCTC’s valuation is based on a combination of fundamental and relative analysis. For the fundamental analysis, I use a discounted cash flow (DCF) model to estimate the intrinsic value of IRCTC’s shares based on their future cash flows.

For the relative analysis, I use a peer group comparison to estimate the fair value of IRCTC’s shares based on its key financial ratios.

Fundamental Analysis

The DCF model is based on the following assumptions:

• A revenue CAGR of 25% for FY24-FY33, based on IRCTC’s historical growth rate and market potential.
• An EBITDA margin of 40% for FY24-FY33, based on IRCTC’s historical margin and operational efficiency.
• A tax rate of 25%, which is the corporate tax rate in India.
• A weighted average cost of capital (WACC) of 10%, is the average cost of equity and debt for IRCTC.
• A terminal growth rate of 3%, which is the long-term growth rate of the Indian economy.

Based on these assumptions, the DCF model estimates the intrinsic value of the IRCTC Share Price Target to be INR 826.4 per share, which implies an upside potential of 31% from the current share price of INR 630.65 per share.

Relative Analysis

The peer group comparison is based on the following key financial ratios:

• Price-to-sales (P/S) ratio, which measures the market value of a company relative to its revenue.
• Price-to-earnings (P/E) ratio, which measures the market value of a company relative to its earnings.
• Price-to-book (P/B) ratio, which measures the market value of a company relative to its book value or net worth.
• Enterprise value-to-EBITDA (EV/EBITDA) ratio, which measures the enterprise value of a company relative to its earnings before interest, taxes, depreciation, and amortization. Enterprise value is the market value of a company’s equity and debt minus its cash and cash equivalents.

Based on these ratios, the peer group comparison estimates the fair value of the IRCTC Share Price Target to be INR 759.6 per share, which implies an upside potential of 20% from the current share price of INR 630.65 per share.

The table below summarizes the peer group comparison:

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IRCTC: Technical Analysis

IRCTC’s share price chart shows that the stock has been in a volatile sideways trend since its listing in October 2019, oscillating between the range of INR 557.10 and INR 774.90. The stock has also formed a broadening wedge pattern, indicating uncertainty and indecision among investors.

The stock is currently trading near the lower end of the wedge, which acts as a dynamic support level.

The stock is also trading above its 50-day and 200-day simple moving averages (SMAs), which act as dynamic support levels. 

The 50-day SMA is also above the 200-day SMA, indicating a positive long-term trend.

The stock is also supported by mixed momentum and volume indicators. The relative strength index (RSI) is near 50, indicating neutral momentum. The moving average convergence divergence (MACD) is below zero but above its signal line, indicating a bullish crossover.

The average directional index (ADX) is below 25, indicating a weak trend. The on-balance volume (OBV) is flat, indicating no clear trend in volume.

Based on these technical factors, I expect IRCTC’s share price to remain range-bound in the short to medium term, unless there is a breakout or breakdown of the wedge pattern.

I will use the Fibonacci retracement and extension tools to estimate the potential support and resistance levels and price targets for IRCTC’s shares.

Support and Resistance Levels

The Fibonacci retracement tool is used to identify the possible retracement levels of a price movement based on the Fibonacci sequence. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 76.4%.

These levels act as potential support or resistance levels when the price retraces from a previous high or low.

The Fibonacci extension tool is used to identify the possible extension levels of a price movement based on the Fibonacci sequence. The Fibonacci extension levels are 61.8%, 100%, 138.2%, 161.8%, and 200%.

These levels act as potential targets or resistance levels when the price extends beyond a previous high or low.

I will use the swing low of INR 557.10 on May 30, 2023, and the swing high of INR 774.90 on June 19, 2023, as the reference points for the Fibonacci retracement and extension tools.

The table below summarizes the support and resistance levels for the IRCTC Share Price Target based on these tools:

IRCTC Share Price Targets: Weekly, Monthly, and Yearly

The price targets for IRCTC’s shares are based on the support and resistance levels identified by the Fibonacci retracement and extension tools, as well as the trend analysis and indicators. The IRCTC Share Price Targets are also subject to change depending on market conditions and news events.

The table below summarizes the price targets for IRCTC’s shares for different time horizons:

Please note that these are just estimates and not actual projections, and they may vary depending on various factors such as market conditions, company performance, industry trends, etc.

Closing Thoughts on IRCTC Share Price Target for Tomorrow, 2023, 2024, 2025, 2026, 2030 and Long Term

In summary, the IRCTC share price target holds significant intrigue for both seasoned investors and newcomers alike.

Given the robust growth of the Indian Railway Catering and Tourism Corporation (IRCTC), it is crucial to stay informed about potential future market trends.

The IRCTC share price target not only reflects its financial performance but also gives a glimpse into India’s overall economic pulse.

Predicting stock prices accurately is complex, but understanding factors like financial reports, industry trends, and market sentiment can provide valuable insights.

Stay tuned for more updates and analysis on the IRCTC share price target to make informed investment decisions.

Please note that this blog post is purely informational and doesn’t recommend you buying stocks. Please consult your financial advisor before making any investment decisions.

FAQs on IRCTC Share Price Target for Tomorrow, 2023, 2024, 2025, 2026, 2030, and Long Term

Is IRCTC a good buy?

It is important to consider multiple factors when determining whether IRCTC is a good buy. While its price-to-equity ratio is higher than the industry average, the stock has shown strong performance in the past three years. Analysts’ opinions on the outlook of the railway stock are mixed. Conduct thorough research and consult with financial experts before making any investment decisions.

What is the target price of IRCTC in 2023?

The target price of IRCTC in 2023 is projected to be between INR 700 and INR 750 based on technical analysis. IRCTC has maintained consistent profitability and steady revenue growth, making it an attractive investment option

IRCTC Share Price Target 2024?

The IRCTC Share Price Target 2024 is between Rs 875 and Rs 938.

What is the future target price of IRCTC 2025?

The future target price of IRCTC in 2025 is uncertain and depends on various factors such as market conditions, company performance, and investor sentiment. It is important to note that predicting exact future target prices for stocks is challenging and speculative. It is advisable to consult financial analysts and consider historical data and trends before making any investment decisions.