IRCTC shares snap four-day losing streak; can they breach 52-week high?

Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) snapped four days of losing streak today in line with movement in the broader market. The IRCTC stock is set for a 37.5% upside from the current levels with a price target of Rs 850, according to brokerage Prabhudas Lilladher.

IRCTC shares have a buy call from the brokerage after Q3 earnings. The beaten-down railway stock is trading near its 52-week low of Rs 596.10 reached on February 2, 2026. The stock is stuck in the bear grip. It has fallen 5%, 15% and 13% in three years, one year and three months, respectively. IRCTC shares trade below all the short term and long term simple moving averages. 

In the current session, the IRCTC stock snapped four-day losing streak, closing 0.54% higher at Rs 616.75 against the previous close of Rs 613.45. Market cap of IRCTC stood at Rs 49,340 crore. The stock hit its 52 week high of Rs 820.20 on May 19, 2025. 

"IRCTC trades at 31x/29x our FY27E/FY28E EPS estimates. Given decent growth prospects, debt-free BS and attractive valuations, we retain BUY with a target of Rs 850 (40x FY28E EPS; earlier 44x as we roll forward our valuation)," said Prabhudas Lilladher. 

The brokerage said catering division reported an all-time high quarterly revenue of Rs 661.4 crore in Q3.

The brokerage raised its EPS estimates by 3%/4% for FY27E/FY28E as it adjusted top-line growth assumptions for internet and catering division. 

The brokerage termed Q3 earnings as strong with revenue/EBITDA/PAT beat of 8%/4%/5% respectively led by healthy traction in catering division and non-convenience fee income. 

"Led by capacity expansion at Rail Neer (4 plants to be added), improved growth visibility in non-convenience fee income and healthy uptick  in catering division (260 Vande Bharat trains in pipeline) we expect sales/PAT CAGR of 8%/10% over FY25-FY28E," said Prabhudas Lilladher. 

IRCTC reported a decent Q3 earnings show with net profit rising 16% to consolidated net profit to Rs 394 crore, led by robust catering and tourism growth. Revenue from operations rose 18% to Rs 1,449 crore compared to Rs 1224.66 crore in the year ago period.  

The board declared a second interim dividend of Rs 3.50 per equity share (175% on a face value of Rs 2) for FY26. The company has fixed record date for dividend eligibility on February 20, 2026.