Should you hold IRCTC shares after Q1 results?
- The Indian Railway Catering and Tourism Corporation (IRCTC), a Miniratna company governed under the Ministry of Railways has declared its Q1FY23 results today
The Indian Railway Catering and Tourism Corporation (IRCTC), a Miniratna company governed under the Ministry of Railways has declared its Q1FY23 results today. The shares of IRCTC closed today with an upside gap of 2.13% at ₹672.50 apiece after the company reported a 198% increase in net profit for the quarter that ended in June. 5,461,816 shares were traded throughout the day, more than double the 20-day average of 2,219,799 shares.
IRCTC reported a profit after tax (PAT) or a net profit of ₹245.52 crore for the quarter ended 30 June 2022 which was ₹82.52 crore in Q1FY22 a YoY rise of 198%. The company reported revenue from operations of ₹852.59 Cr in Q1FY23 which was ₹243.35 Cr a YoY rise of 250%. The company reported a total income of ₹877 Cr in Q1FY23 compared to ₹257.94 Cr in Q1FY22 a YoY rise of 240%. The company's total expenses reached 547.70 Cr in Q1FY23 compared to ₹146.86 Cr in Q1FY22. The company's profit before tax (PBT) reached ₹329.30 Cr in Q1FY23 compared to ₹111.07 Cr in Q1FY23. In comparison to Q1FY22 at ₹111.5 crore, EBITDA, or earnings before interest, taxes, depreciation, and amortization, totalled ₹320.9 crore in Q1FY23 a YoY rise of 187%. The income from catering services increased dramatically, from ₹56.7 crore to ₹352 crore in Q1FY23 a YoY rise of 520%. A revenue of ₹301.6 crore was reported by the online ticketing industry, followed by ₹83.6 crore by Rail Neer, ₹81.9 crore by tourism, and ₹33.2 crore by State Teertha.
After the performance of IRCTC, Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd has assigned a HOLD rating for the stock. He said “The stock currently trades at 54x our FY24E EPS estimate of Rs12.5. We currently have a HOLD rating on the stock with a TP of Rs649.” He further added that “All the segments were EBIT positive. Tourism achieved EBIT breakeven for the first time since pandemic at 1.1% margin.”
Commenting on the performance of IRCTC, Richa Agarwal, Senior Research Analyst, Equitymaster said “IRCTC has posted a good set of profit numbers amidst concerns about the impact of inflation on its operating cost. Its monopoly status and strong balance sheet continue to keep the stock in favour amongst investors.”
On the NSE the shares of IRCTC touched a 52-week-high of ₹1,279.26 on 19th October 2021 and a 52-week-low of ₹499.47 on 09-August-2021 which means that at the current market price of ₹672.50 the stock is trading 47% below the 52-week-high and 34% above the 52-week-low. At the current market price the stock is trading above the 5 days, 10 days, 20 days, 50 days, 100 days EMA but below the 200 days Exponential Moving Average (EMA). The RSI indicator value for Indian Railway Catering and Tourism Corporation (IRCTC) as of 10/08/2022 is Rs. 72.90, which is in the overbought zone.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High