IRCTC shares stuck in bear grip; when is the good time to buy?
IRCTC share price today: IRCTC shares rose 0.08 per cent to Rs 649.40 against the previous close of Rs 648.90 on BSE. Market cap of IRCTC stood at Rs 52,012 crore.
- Feb 17, 2023,
- Updated Feb 17, 2023 10:06 AM IST
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) are in a major downtrend since the middle of December 2022, compounding worries of investors who intend to exit at the breakeven level or earn profit. The stock has seen subdued sentiment during the period.
In fact, the IRCTC stock has slipped 11.67 per cent or Rs 85.8 since December 14 last year. The value decline in a span of two months is nearly 50% of the losses the stock has incurred during the last one year.
Since February 16, 2022, the stock has lost 21.33% in a year.
In the current trading session, the stock of the tourism and ticketing arm of Indian Railways rose 0.08 per cent to Rs 649.40 against the previous close of Rs 648.90 on BSE. Total 7748 shares of the firm changed hands amounting to a turnover of Rs 50.25 crore on BSE. Market cap of IRCTC stood at Rs 52,012 crore.
In terms of technicals, the relative strength index (RSI) of IRCTC stands at 54.7, signaling it's neither trading in oversold nor overbought territory. IRCTC stock has a one-year beta of 1.3. This signals the stock has very high volatility and carries higher risk. The large cap stock is trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
IRCTC stock has a price to equity ratio of 55, which is higher compared to the industry PE of 50.45. This signals that the stock is overvalued compared to its peers.
However, the stock has been an outperformer in three years surging 114% during the period. IRCTC logged a 22% rise in net profit to Rs 256 crore for the quarter ended December 31, 2022 against Rs 209 crore in the year-ago period.
IRCTC’s revenue climbed 70% to Rs 918 crore in Q3 as compared to Rs 540 crore in Q3FY22. The company announced interim dividend of Rs 3.5 per share.
EBITDA climbed 16.7 percent to Rs 325.8 crore in Q3 from Rs 279.2 crore in corresponding period of previous year.
Here’s a look at what analysts said about prospects of the IRCTC stock amid the current correction for the stock.
Ravi Singh, Vice-President and Head of Research at Share India said, “IRCTC shares are showing strength on daily and weekly charts. The MACD indicator and moving averages are in buy zone, suggesting a strong move ahead. Traders may take a long position in the range of Rs 620-630 levels for a target of Rs 690 level, with a stop loss placed at Rs 600 level from a near-term perspective.”
Jinesh Joshi – Research Analyst at Prabhudas Lilladher has assigned a hold call for the stock with a target price of Rs 679.
"All the segments were EBIT positive with internet ticketing reporting the highest EBIT margin of 84.2%. EBITDA rose 16.7% YoY to Rs 3,258 mn (Prabhudas Lilladher estimates Rs 3,181 mn) with a margin of 35.5% (Prabhudas Lilladher estimates of 36.2%) as against 51.7% in 3QFY22. The stock currently trades at 47.5x our FY24E EPS estimate of Rs 13.5. PAT rose 22.4% YoY to Rs 2,555 mn (Prabhudas Lilladher estimates of Rs 2,445 mn) with a margin of 27.8% (Prabhudas Lilladher estimates 27.8%) as against 38.7% in 3QFY22," said Joshi.
Abhijeet from Tips2trade said, "IRCTC stock price faces strong resistance at Rs 658 on the daily charts. A close above this level could be bullish and lead to targets of Rs 700-730 in the coming days. Support will be at Rs 601."
Also read: ITC, HDFC Bank, HUL, RIL and TCS: Retail investors owned Rs 5.71 lakh cr worth 10 stocks in Q3
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) are in a major downtrend since the middle of December 2022, compounding worries of investors who intend to exit at the breakeven level or earn profit. The stock has seen subdued sentiment during the period.
In fact, the IRCTC stock has slipped 11.67 per cent or Rs 85.8 since December 14 last year. The value decline in a span of two months is nearly 50% of the losses the stock has incurred during the last one year.
Since February 16, 2022, the stock has lost 21.33% in a year.
In the current trading session, the stock of the tourism and ticketing arm of Indian Railways rose 0.08 per cent to Rs 649.40 against the previous close of Rs 648.90 on BSE. Total 7748 shares of the firm changed hands amounting to a turnover of Rs 50.25 crore on BSE. Market cap of IRCTC stood at Rs 52,012 crore.
In terms of technicals, the relative strength index (RSI) of IRCTC stands at 54.7, signaling it's neither trading in oversold nor overbought territory. IRCTC stock has a one-year beta of 1.3. This signals the stock has very high volatility and carries higher risk. The large cap stock is trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
IRCTC stock has a price to equity ratio of 55, which is higher compared to the industry PE of 50.45. This signals that the stock is overvalued compared to its peers.
However, the stock has been an outperformer in three years surging 114% during the period. IRCTC logged a 22% rise in net profit to Rs 256 crore for the quarter ended December 31, 2022 against Rs 209 crore in the year-ago period.
IRCTC’s revenue climbed 70% to Rs 918 crore in Q3 as compared to Rs 540 crore in Q3FY22. The company announced interim dividend of Rs 3.5 per share.
EBITDA climbed 16.7 percent to Rs 325.8 crore in Q3 from Rs 279.2 crore in corresponding period of previous year.
Here’s a look at what analysts said about prospects of the IRCTC stock amid the current correction for the stock.
Ravi Singh, Vice-President and Head of Research at Share India said, “IRCTC shares are showing strength on daily and weekly charts. The MACD indicator and moving averages are in buy zone, suggesting a strong move ahead. Traders may take a long position in the range of Rs 620-630 levels for a target of Rs 690 level, with a stop loss placed at Rs 600 level from a near-term perspective.”
Jinesh Joshi – Research Analyst at Prabhudas Lilladher has assigned a hold call for the stock with a target price of Rs 679.
"All the segments were EBIT positive with internet ticketing reporting the highest EBIT margin of 84.2%. EBITDA rose 16.7% YoY to Rs 3,258 mn (Prabhudas Lilladher estimates Rs 3,181 mn) with a margin of 35.5% (Prabhudas Lilladher estimates of 36.2%) as against 51.7% in 3QFY22. The stock currently trades at 47.5x our FY24E EPS estimate of Rs 13.5. PAT rose 22.4% YoY to Rs 2,555 mn (Prabhudas Lilladher estimates of Rs 2,445 mn) with a margin of 27.8% (Prabhudas Lilladher estimates 27.8%) as against 38.7% in 3QFY22," said Joshi.
Abhijeet from Tips2trade said, "IRCTC stock price faces strong resistance at Rs 658 on the daily charts. A close above this level could be bullish and lead to targets of Rs 700-730 in the coming days. Support will be at Rs 601."
Also read: ITC, HDFC Bank, HUL, RIL and TCS: Retail investors owned Rs 5.71 lakh cr worth 10 stocks in Q3