IRCTC Share Price Target 2022,2023
Today we are going to analyze monopoly stock, IRCTC. The question is,
Why IRCTC is a strong monopoly?
The reasons are, that this is the only company allowed in Indian railways by the Indian government to provide catering services, packaged drinking water, and the most important online railway ticket booking business.
Whatever things I mentioned above, only IRCTC has permission to sell at the railway station as well as in trains, so IRCTC is the sole monopoly in the railway sector.
IRCTC has given multi-bagger returns to investors since its IPO was listed in the stock market in India. If you saw IRCTC returns from last year it is almost more than 100%.
Let’s see whether IRCTC will outperform in the future or not and what will IRCTC Share Price targets in 2022,2023.
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IRCTC Share Analysis?
IRCTC share is a Mini Ratna which control by the ministry of railways, of the government of India.
IRCTC stock’s initial Public Offer came in October 2019. Then the company’s market capitalization was 5150 Cr. Now if you see the market capitalization of the company in February 2022 it has 65,784 Cr. Now you can see what marvelous growth occur in just the last 2 years.
Now IRCTC’s share price is trading at ₹ 684.5 in the stock market. The current Price to earnings ratio of the company is 99.7.
let’s see the business segment of IRCTC in detail.
Business Segment of IRCTC
1. Catering and hospitality
This is the largest segment of IRCTC which is growing rapidly.
It consists of Mobile catering, static catering, other hospitality businesses, and e-catering businesses.
Catering- 45.89 Share in total operating revenue.
If you see the E- catering Revenue, it is up by 315% CAGR on a YOY basis since 2015.
2-Internet Ticketing Business
In this segment, for e-tickets only IRCTC has permission.
Do you know?
In 2002, IRCTC had been receiving an average of just 29 ticket bookings per day. But, since 2020 Tickets booking are increased in mass. In 2022 it has more than 10 lakh tickets are booked per day. It also provides bus and Flight ticket booking.
Revenue from this segment 27.24% share of the total operating revenue is generated.
3- Travel and Tourism
In this segment, the company provides various types of products and services.
17.11% of revenue comes from this segment.
4- Packaged Drinking Water
In 2021 Production capacity of bottles per day was 162400.
9.76% of share revenue comes from this business.
What is the Moat of IRCTC?
What is the future of IRCTC share?
1- Monopoly in Tickets.
2- Monopoly in water.
3- Monopoly in Catering.
RISK in IRCTC Share.
A risk factor is any change in government policy/privatization and so on.
IRCTC Financial Statements
IRCTC’s return on capital employed is now 16.5%. IRCTC has an ROE of 11.6%.
The last Three-Quarters Net Profit of the IRCTC is
in June 2021 it was 83 Cr
in September which was 2021- 159 Cr
now in the last quarter of December 2021, it has 209 Cr.
The profit of IRCTC is increasing year on year basis.
Let’s See the Compound sales growth of the IRCTC company.
IRCTC numbers are not quite good in recent 03 years because of the pandemic. Recent 03-year sales growth of IRCTC is in the negative -19%. But if you see the last year’s sales growth is almost 50%.
The compound profit growth of the company from last 03 years is -10%. But last year’s profit growth of the IRCTC it has 190%.
What is the target price of IRCTC shares?
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Note- The numbers which are provided above vary with respect to time please check the latest data of fundamental analysis if you are interested in these stocks.
IRCTC Share Price Target 2022,2023
|Year Target||IRCTC Share Price Targets|
|2023 First Target||1020|
|2023 Second Target||1280|
Disclaimer- This article is only for educational purposes if you want to take entry or exit in this share, please consult your financial advisor.