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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 542830 | NSE: IRCTC

Indian Railway Catering & Tourism Corporation Ltd (IRCTC): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:22 pm

Market Cap 71,632 Cr.
Current Price 895
High / Low1,148/636
Stock P/E60.2
Book Value 40.4
Dividend Yield0.73 %
ROCE53.8 %
ROE40.4 %
Face Value 2.00
PEG Ratio3.63

Competitors of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Growington Ventures India Ltd 74.2 Cr. 4.6223.6/4.1039.9 1.160.00 %11.7 %6.37 % 1.00
Easy Trip Planners Ltd 5,839 Cr. 33.054.0/31.632.0 3.410.30 %40.1 %29.3 % 1.00
Autoriders International Ltd 7.00 Cr. 143143/30.10.89 6610.35 %24.0 %33.7 % 10.0
Thomas Cook (India) Ltd 8,949 Cr. 190264/11334.5 43.70.21 %19.1 %13.8 % 1.00
Indian Railway Catering & Tourism Corporation Ltd (IRCTC) 71,632 Cr. 8951,148/63660.2 40.40.73 %53.8 %40.4 % 2.00
Industry Average25,486.25 Cr273.7735.13129.830.31%29.95%25.78%2.67

All Competitor Stocks of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2243392434055406918538069189651,0029951,118
Expenses130194132193261412532501592640659629724
Operating Profit95145112212279279321305326325343367394
OPM %42%43%46%52%52%40%38%38%35%34%34%37%35%
Other Income21171516162224263265-134731
Interest1442232554445
Depreciation10191112121414191011141414
Profit before tax104139111214282283329307343375312395406
Tax %25%25%26%26%26%25%25%26%25%26%26%25%26%
Net Profit7810483159209214246226256279232295300
EPS in Rs0.981.301.031.982.612.673.072.833.193.482.903.683.75

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0591,3671,5201,4661,8702,2647771,8793,5414,080
Expenses9071,1761,2061,1921,4871,5625891,0052,2652,652
Operating Profit1521903142743837031888741,2761,428
OPM %14%14%21%19%20%31%24%47%36%35%
Other Income8213967991267712472148131
Interest00332108111617
Depreciation20212224294046495453
Profit before tax2143093553464797302588851,3541,489
Tax %39%39%35%36%36%30%27%26%26%
Net Profit1311892292213095131876601,0061,106
EPS in Rs13.0618.8611.4511.033.866.412.348.2412.5713.81
Dividend Payout %20%40%49%21%98%39%43%42%44%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)44.27%21.16%-3.49%39.82%66.02%-63.55%252.94%52.42%
Change in YoY Net Profit Growth (%)0.00%-23.11%-24.66%43.31%26.20%-129.57%316.49%-200.52%

Indian Railway Catering & Tourism Corporation Ltd (IRCTC) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:18%
3 Years:77%
TTM:19%
Compounded Profit Growth
10 Years:%
5 Years:32%
3 Years:94%
TTM:18%
Stock Price CAGR
10 Years:%
5 Years:44%
3 Years:-6%
1 Year:27%
Return on Equity
10 Years:%
5 Years:38%
3 Years:42%
Last Year:40%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital20204040160160160160160160
Reserves4245227479159111,1541,2961,7102,3183,070
Borrowings000000791058460
Other Liabilities7188951,0401,3651,5231,9281,6181,9092,5262,801
Total Liabilities1,1621,4371,8262,3192,5943,2413,1533,8845,0896,091
Fixed Assets155159170190182285311335351343
CWIP16141784016242634443
Investments0000000000
Other Assets9901,2641,6392,1222,3722,9412,8183,5224,7045,306
Total Assets1,1621,4371,8262,3192,5943,2413,1533,8845,0896,091

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 6928833824499409248524812882
Cash from Investing Activity -4679440-3538-453-242-317-215
Cash from Financing Activity -17-31-136-57-179-280-47-258-434-404
Net Cash Flow62632967-33137-2522361262

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow152.00190.00314.00274.00383.00703.00109.00769.00-83.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days514370137115125245111118117
Inventory Days15131111232650271816
Days Payable62802372185684514,4922,3911,5951,483
Cash Conversion Cycle4-24-157-70-430-300-4,197-2,252-1,459-1,350
Working Capital Days-20-51-35-10-65-35-128-25622
ROCE %63%54%40%44%62%16%51%59%54%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.40%67.40%67.40%67.40%67.40%62.40%62.40%62.40%62.40%62.40%62.40%62.40%
FIIs7.81%7.06%6.42%5.87%5.81%6.84%6.53%6.99%7.11%7.34%8.08%7.78%
DIIs8.48%4.69%5.22%5.32%5.57%8.73%10.06%9.92%10.53%11.98%12.72%13.74%
Public16.31%20.86%20.96%21.42%21.23%22.03%21.01%20.68%19.97%18.28%16.79%16.06%
No. of Shareholders8,84,02120,62,02421,85,50422,42,51322,18,73421,61,32721,28,34820,80,26420,26,79819,28,85119,10,30719,28,716

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Arbitrage Opportunities Fund2,476,2500.91241.982,318,2762024-10-136.81%
Canara Robeco Emerging Equities2,318,2761.14226.542,318,2762024-10-130%
Kotak Equity Arbitrage Fund - Regular Plan1,884,7500.51184.182,318,2762024-10-13-18.7%
Tata Arbitrage Fund1,461,2501.48142.792,318,2762024-10-13-36.97%
Aditya Birla Sun Life Arbitrage Fund1,215,3751.21118.772,318,2762024-10-13-47.57%
Nippon India Arbitrage Fund1,213,6250.91118.62,318,2762024-10-13-47.65%
Invesco India Arbitrage Fund992,2500.7596.962,318,2762024-10-13-57.2%
Bandhan Arbitrage Fund814,6251.4879.612,318,2762024-10-13-64.86%
Nippon India ETF Nifty Next 50 Junior BeES769,2791.7875.172,318,2762024-10-13-66.82%
Edelweiss Arbitrage Fund752,5000.973.532,318,2762024-10-13-67.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24
FaceValue2.00
Basic EPS (Rs.)13.89
Diluted EPS (Rs.)13.89
Cash EPS (Rs.)14.60
Book Value[Excl.RevalReserv]/Share (Rs.)40.37
Book Value[Incl.RevalReserv]/Share (Rs.)40.37
Revenue From Operations / Share (Rs.)53.38
PBDIT / Share (Rs.)20.38
PBIT / Share (Rs.)19.67
PBT / Share (Rs.)18.70
Net Profit / Share (Rs.)13.89
NP After MI And SOA / Share (Rs.)13.89
PBDIT Margin (%)38.18
PBIT Margin (%)36.84
PBT Margin (%)35.03
Net Profit Margin (%)26.01
NP After MI And SOA Margin (%)26.01
Return on Networth / Equity (%)34.40
Return on Capital Employeed (%)45.47
Return On Assets (%)18.24
Current Ratio (X)1.95
Quick Ratio (X)1.95
Interest Coverage Ratio (X)87.45
Interest Coverage Ratio (Post Tax) (X)63.73
Enterprise Value (Cr.)72118.35
EV / Net Operating Revenue (X)16.89
EV / EBITDA (X)44.23
MarketCap / Net Operating Revenue (X)17.42
Price / BV (X)23.03
Price / Net Operating Revenue (X)17.42
EarningsYield0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) as of October 15, 2024 is: ₹989.73

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is Undervalued by 10.58% compared to the current share price ₹895.00

Intrinsic Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) as of October 15, 2024 is: ₹1,153.94

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is Undervalued by 28.93% compared to the current share price ₹895.00

Last 5 Year EPS CAGR: 16.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 44.30%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -34.10, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -98.50, which is a positive sign.
  4. The company has higher reserves (1,306.70 cr) compared to borrowings (32.80 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (79.20 cr) and profit (357.80 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Indian Railway Catering & Tourism Corporation Ltd (IRCTC):
      1. Net Profit Margin: 26.01%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 45.47% (Industry Average ROCE: 29.95%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 34.4% (Industry Average ROE: 25.78%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 63.73
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.95
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 60.2 (Industry average Stock P/E: 35.13)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Indian Railway Catering & Tourism Corporation Ltd. is a Public Limited Listed company incorporated on 27/09/1999 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1999GOI101707 and registration number is 101707. Currently Company is involved in the business activities of Data processing, hosting and related activities; web portals. Company’s Total Operating Revenue is Rs. 1879.48 Cr. and Equity Capital is Rs. 160.00 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Travel/Tourism/Amusement Park11th Floor, Statesman House, New Delhi Delhi 110001investors@irctc.com
    http://www.irctc.com
    Management
    NamePosition Held
    Mr. Sanjay Kumar JainChairman & Managing Director
    Mr. Ajit KumarDirector - Finance & CFO
    Dr. Lokiah RavikumarDirector
    Mr. Rahul HimalianDirector
    Mr. Vinay Kumar SharmaIndependent Director
    Mr. Namgyal WangchukIndependent Director
    Mr. Devendra Pal BhartiIndependent Director
    Mr. Neeraj SharmaGovernment Nominee Director
    Mr. Manoj Kumar GangeyaGovernment Nominee Director

    FAQ

    What is the latest fair value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The latest fair value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is ₹989.73.

    What is the Market Cap of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The Market Cap of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 71,632 Cr..

    What is the current Stock Price of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) as on 15 October 2024?

    The current stock price of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) as on 15 October 2024 is ₹895.

    What is the High / Low of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) stocks in FY 2024?

    In FY 2024, the High / Low of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) stocks is 1,148/636.

    What is the Stock P/E of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The Stock P/E of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 60.2.

    What is the Book Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The Book Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 40.4.

    What is the Dividend Yield of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The Dividend Yield of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 0.73 %.

    What is the ROCE of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The ROCE of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 53.8 %.

    What is the ROE of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The ROE of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 40.4 %.

    What is the Face Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC)?

    The Face Value of Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is 2.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indian Railway Catering & Tourism Corporation Ltd (IRCTC). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE