12/04/2025
RCTC Ltd – Navaratna Back on the Rails
Date: 10th Apr 2025 / Large Cap with mkt cap ₹ 57,000 crores / CMP: ₹ 715, current PE: 47 Times
Advice: Buy with a price Target of ₹ 1,179
Why IRCTC : This next gen Railways PSU has monopolies in internet rail ticketing, food and catering and Rail Neer. High potential segments include Tourism, travel packages and running luxury trains. Indian Railways is making high investments in train networks for speed, safety, passenger amenities and eco-friendly operations. These will accelerate trains as a preferred travel mode. IRCTC has a key passenger facing role in this.
Why Now: IRCTC has recovered post Covid and has excellent FY23-25 results. At a PE of 47 times, it is below historical average PE of 55 times, so undervalued. It has also invested on new capacities, new initiatives and better services. Across India we see a travel and tourism rebound at airports, tourist destinations and train stations. Its internet ticketing business is growing share of overall rail tickets, adding to convenience and access. PSUs are safer investments, in a volatile market.
Risks: 1) PSUs are slower to respond to market opportunities 2) Frequent transaction failures and website crashes, especially in Tatkal hours 3) It has vast user data and centralized systems, so is exposed to cyber-attacks, which can be damaging 4) Regulator is GoI and regulatory changes is an issue like loss of monopoly 5) Private online travel firms are raising competition 6) Absolute valuations of PE and EV/EBITDA ratios are high, even after a large recent fall.
Opinion: Buy with a price Target of ₹ 1,179 by May’27, a 65% upside.
For entire report visit - IRCTC
https://jainmatrix.com/2025/04/11/irctc/
April 11, 2025
Regards Punit Jain
Disclaimers and Disclosures
Punit Jain discloses that he has no shareholding in IRCTC as on date of report. In addition, he has no financial interest or transactions with IRCTC, except occasional train travel bookings. In addition, JainMatrix Investments Bangalore (JMI) and its promoters/ employees have no direct or financial interest in IRCTC, and no known material conflict of interest as on date of publication of this report.
JMI has been an equity investment adviser commercially since Nov 2012, and a SEBI certified and registered since 2016, under SEBI (Research Analysts) Regulations. Any questions should be directed to [email protected]. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.
Date: 10th Apr 2025 Large Cap with mkt cap ₹ 57,000 crores. CMP: ₹ 715, current PE: 47 Times Advice: Buy with a price Target of ₹ 1,179 Why IRCTC: This next gen Railways PSU has monopolies in inter…
