Indian Railway Catering and Tourism Corporation Ltd (IRCTC), is a Miniratna under Railway Ministry. This top railway company will announce an interim dividend for its investors for FY25 soon. For the same, IRCTC has fixed a record date in November. IRCTC is currently below Rs 850 and has mostly corrected in 2024.
IRCTC Share Price Ltd:
At the time of writing, IRCTC shares were marginally down to trade at Rs 829.90 apiece on BSE, with a market cap of Rs 66,392.00 crore. In the pre-market bell of October 23, IRCTC share price dipped by 1.2% on BSE to Rs 821.65 apiece, compared to the previous market price of Rs 831.45. The stock's 52-week high and low is Rs 1,148.30 apiece and Rs 636.10 apiece on the exchange.
The price-to-equity ratio of IRCTC is at 56.05x, however, the return on equity is strong at 36.74%.
YTD, IRCTC stock is down by 6.8% on BSE.
IRCTC Dividend:
As per the regulatory filing, IRCTC has announced that its board of directors meeting is scheduled on Monday, 4th November 2024, inter-alia, to:
- consider and approve the unaudited financial results (Standalone and Consolidated) of the Company for the quarter and half year ended on 30th September 2024.
- consider declaration of Interim Dividend for FY 2024-25, if any. In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, November 14, 2024, as the Record Date for determining the eligibility of shareholders for payment of the said Interim Dividend, if declared by the Board of Directors.
In FY24, IRCTC delivered up to 325% dividend worth Rs 6.5 per share.
Currently, it has a dividend yield of 0.78%.
IRCTC Recommendation:
As per Trendlyne data, the consensus recommendation from 7 analysts for Indian Railway Catering & Tourism Corporation Ltd. is SELL. However, EPS is expected to grow by 25.7% in FY25. The average 1-year target price is at Rs 857.86 apiece, hinting at a potential 4% upside ahead.
However, in its latest note, Prabhudas Lilladher said, "While Indian Railway Catering & Tourism Corporation's (IRCTC IN) top-line was broadly in-line with our estimates, operational performance was weak with EBITDA margin of 33.5% (PLe 35.3%). We believe growth in the internet ticketing division has plateaued with e-booking penetration at ~83% and expectation of mid-single digit growth in volumes over FY24-FY26E. In addition, a rising share of low yielding UPI transactions (45% share in 1QFY25) will limit the scope for margin expansion."
It added, "While we have re-aligned our topline estimates amid strong performance in catering division, our EPS estimates remain broadly intact given the segment commands lower margin. During FY24, catering/internet ticketing division contributed 45%/30% to IRCTC's top-line and 20%/77% to its EBIT."
Additionally, it said, "We believe scope for earnings surprise is limited given growth in high margin internet ticketing division has plateaued. We expect sales/PAT CAGR of 11%/12% over FY24-FY26E and retain 'REDUCE' with a TP of Rs822 (earlier Rs811) after assigning a multiple of 47.5x (no change) over FY26E EPS."
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a "Mini Ratna (Category-I)" Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems.
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