IRCTC

Fundamental View- IRCTC (Indian Railway Catering & Tourism Corporation Ltd.) is a Mini-Ratna CPSE under Indian Railways, with a monopoly in e-ticketing (80%+ market share), catering, tourism, and bottled water (Rail Neer). For FY 2024, revenue increased from ₹3,541 cr to ₹4,270 cr, EBITDA rose to ₹1,630 cr (38% margin), and net profit reached ₹1,170 cr with EPS at ₹13.89. As of March 2025, the company showcased strong profitability and efficiency with ROE approaching 38–39%, ROCE 45%, minimal debt-to-equity of 0.02–0.03, a current ratio near 2.0 and robust free cash flow (₹6.5 bn). Trading at premium valuations (P/E 47–67×, P/B 17–23×), IRCTC remains a high-quality cash-generative franchise. Technical View- As seen on the weekly chart, the stock witnessed strong buying momentum last week. On 19th June 2025, the stock made a weekly low of ₹743.40, from where a sharp recovery was observed. On the weekly chart, the stock is seen taking strong support around its 14-day and 55-day EMAs. On 26th June, the stock made a low of ₹763, and on 27th June, it opened at ₹774, made a low of ₹773.90, and closed at ₹785.25 after touching a high of ₹789.10, which also marked its weekly high. The stock is currently trading within the range of its 55-day and 200-day EMAs on the daily chart, while on the weekly chart, it is sustaining above its 14-day EMA and has entered a correction phase, possibly heading towards retesting its 55-day EMA. In my view, with a stop-loss at ₹740, a "buy on dip" strategy can be considered for a long-term perspective. If the stock sustains its positive momentum, we may soon see levels of ₹825-₹830 in the near term. Warning- ***** ***** *****