The Indian Railway Catering and Tourism Corporation (IRCTC) has been a solid force in the Indian Railways, bringing about significant changes in the way the railway system operates and serves its passengers. The importance of IRCTC in the Indian Railways can be seen in several key areas, including digitalization, catering, tourism, and customer service. IRCTC has been instrumental in bringing the Indian Railways into the digital age. The introduction of online ticketing through the IRCTC website was a revolutionary step that made ticket booking convenient and accessible for millions of passengers. The IRCTC website and mobile app have become the go-to platforms for booking railway tickets, checking train schedules, and making cancellations or changes to existing reservations.
Also, IRCTC has significantly improved the quality of food and catering services on trains and at railway stations. It introduced the concept of ‘Train Side Vending,’ ensuring that passengers receive fresh and hygienic food during their journey. The ‘e-catering’ service allows passengers to order a variety of cuisines online, which are delivered to their seats at selected stations. Each of these areas has seen a marked improvement due to the initiatives and services introduced by IRCTC. As a result, the IRCTC share price has been on a bullish road since its listing, and investors are wondering whether IRCTC will be able to meet bullish expectations. In this IRCTC share price prediction, we’ll dive deeper into IRCTC share’s future price predictions and market potential with in-depth technical analysis and company insights.
IRCTC: A Quick Note
The Indian Railway Catering and Tourism Corporation (IRCTC) is a public sector enterprise in India that offers ticketing, catering, and tourism services to the Indian Railways. Initially, it was entirely owned by the Government of India and operated under the Ministry of Railways’ administrative control. However, since 2019, it has been listed on the National Stock Exchange and the Bombay Stock Exchange, with the Government retaining majority ownership.
IRCTC was founded on September 27, 1999, as a public sector undertaking wholly owned by the Government of India via the Indian Railways. It holds the exclusive authority to provide certain services to the Indian Railways, including online ticketing, catering, and the sale of packaged drinking water on trains and at railway stations. In May 2008, it achieved the status of a Miniratna public corporation, granting it a certain level of financial autonomy.
In 2019, IRCTC was listed on the National Stock Exchange, leading to a reduction in the Government of India’s stake to 87%, with the rest of the shares being traded publicly. By December 2020, the Government of India divested an additional 20%, bringing its stake in IRCTC down to 67%.
IRCTC: Offerings And Roadmap
The Indian Railway Catering and Tourism Corporation (IRCTC) has been a trailblazer in introducing internet-based rail ticket booking through its website and mobile phones using WiFi, GPRS, or SMS. It also offers a handy SMS service for checking PNR status and live train status. Besides e-tickets, IRCTC provides I-tickets, which are similar to regular tickets but are booked online and delivered by post.
In 2011, IRCTC launched ‘Shubh Yatra,’ a loyalty program for frequent travelers, offering discounts on all tickets booked throughout the year for an annual fee. To simplify e-ticket booking, it introduced the Rolling Deposit Scheme (RDS), allowing passengers to reserve seats against advance money kept with the corporation. IRCTC expanded its online reservation services to include flight and hotel bookings.
On August 11, 2021, IRCTC introduced a smart card system for passengers traveling on unreserved train tickets, enabling them to avoid long queues at railway stations. These cards can also be recharged online.
Under the Tatkal scheme, passengers can book their tickets for almost all Mail/Express trains at short notice through the Indian railway’s internet portal. Tatkal E-tickets can be booked one day in advance, with separate timings for AC and Non-AC reservations.
In 2016, IRCTC launched a Lite version of its website, free from ads and pop-ups, and included a feature to check PNR status.
IRCTC has revolutionized onboard catering by introducing pantry cars in long or medium-distance trains, serving freshly cooked food. It also operates food plazas, Jan Aahar cafeterias, and refreshment rooms at various railway stations. In 2014, it launched e-catering services, allowing passengers to order food from partner restaurants to be delivered to their seats.
IRCTC also manages air-conditioned waiting lounges, retiring rooms, and budget hotels at major railway stations in partnership with private entities. It owns the bottled water brand “Rail Neer,” sold on trains and railway stations.
IRCTC organizes budget and deluxe package tours for domestic and foreign tourists. The “Bharat Darshan” package is popular among budget tourists, while luxury tourism packages are available on special luxury trains.
In 2020, IRCTC began operating India’s first private train, the Tejas Express, from Lucknow to New Delhi.
IRCTC Share: Price History
The Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of the Indian Railways, has had a remarkable journey on the Indian stock market since its debut in October 2019. The initial public offering (IPO) was a significant event, not just for the corporation but for the entire Indian stock market. The IPO was oversubscribed 112 times, indicating a high level of interest among investors.
The shares were listed at a price of ₹155 per share, but the overwhelming response from investors led to a spectacular debut on the stock market. Within just a few weeks of trading, the share price of IRCTC surged, closing at around ₹180 per share. This was a clear indication of the confidence investors had in the corporation’s potential and its unique position in the market.
Over the months that followed, the share price of IRCTC continued its upward trajectory. The company’s strong performance, its monopoly in online rail bookings, and the growth potential in the tourism sector have made it a favorite among investors. The corporation’s commitment to enhancing customer experience and its continuous efforts towards digitalization has also contributed to its strong performance on the stock market.
In early 2020, the share price skyrocketed, breaking above the ₹200 mark. It then climbed further and touched ₹386 in February but failed to continue its uptrend due to the Covid pandemic. In March, the world was hit by the COVID-19 pandemic, which had a significant impact on all sectors of the economy, including the railways.
Due to this, IRCTC’s price dropped below ₹200 by March’s end. However, the price recovered a bit in the following months and continued to trade in a range-bound region for the rest of the year.
Despite the challenges posed by the pandemic, IRCTC’s share price showed a solid recovery. While there was a temporary dip due to the nationwide lockdown and the suspension of train services, the share price recovered as operations gradually resumed. In 2021, the price claimed the ₹300 level, and investors pushed the price further.
By mid-year, IRCTC’s stock price reached ₹450, and its robust offerings sparked further growth. The momentum did not stop here as it extended, and IRCTC touched the notable ₹1000 level in October. This recovery showcased the robustness of IRCTC’s business model and its crucial role in the Indian Railways’ operations.
However, the price declined from that level due to low buying pressure. In 2022, the share price of IRCTC saw significant movement. The price witnessed massive volatility and reached ₹500 in June. However, it then recovered slightly and hovered around ₹700.
This growth reflects the corporation’s strong fundamentals and its ability to deliver value to its shareholders. The journey of IRCTC’s share is influenced by the corporation’s robust business model, its continuous efforts towards innovation, and its promise to enhance customer experience.
Currently, in 2023, the IRCTC price is in recovery mode, and it aims to break above its all-time high this year. The future looks promising for IRCTC, with several new initiatives and services in the pipeline.
IRCTC Share Price Prediction: Technical Analysis
Recently, the IRCTC share price experienced a solid bearish trend, which has brought more selling pressure to the market in recent weeks. The price has been on a steady downtrend since June’s recovery rally toward ₹675. After breaking below the ₹640 mark, IRCTC shares sparked an intense bearish momentum. The market was previously heavily influenced due to poor performance, covid pandemic; however, IRCTC showed a strong recovery, as seen on the daily price chart, and maintained its price stability. Despite facing critical support levels, including ₹558 and ₹600, IRCTC share has managed to display an uptrend and is well now above the fear zone. A thorough technical analysis of IRCTC’s share price reveals bullish indicators, which may soon send the price to new highs. Investors should exercise caution as the short-term investment plan for IRCTC appears volatile.
According to TradingView, the IRCTC price is currently trading at ₹630, reflecting an increase of over 1.8% in the last 24 hours. Our technical evaluation of IRCTC’s price indicates that the current bearish momentum may soon fade if bulls reverse the trend from immediate support at ₹610; however, bears are trying to make a comeback to prevent the price from surging above ₹640. Examining the daily price chart, IRCTC’s share price has found support near the ₹604 level, from which the price gained bullish momentum and broke above multiple Fib channels. As the IRCTC price dropped below the EMA20 recently, bears may soon open short positions and plunge the token further. The Balance of Power (BoP) indicator is currently trading in a positive region zone at 0.77, hinting at an upward correction ahead.
To thoroughly analyze the price of IRCTC shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a solid surge as IRCTC’s price made an upswing. The trend line is heading toward the overbought region as it currently trades at level 59, hinting that further upward correction is on the horizon. It is anticipated that IRCTC’s price will soon attempt to break above its 23.6% Fibonacci level to achieve its short-term bullish goals. If bears fail to plunge below the current 0.038 Fibonacci region, an uptrend above ₹650 might be on the horizon.
As the SMA-14 continues its upward swing by trading above 46-level, it trades slightly below the RSI line, potentially holding promises of the stock’s upward movement on the price chart. If IRCTC shares continue to surge, it can pave the way to resistance at ₹643. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹680.
Conversely, if IRCTC fails to hold above the critical support level of ₹605, a sudden collapse may occur, resulting in further price declines and causing the IRCTC share to trade near the Bollinger band’s lower limit of ₹560. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹490.
IRCTC Share Price Prediction By Blockchain Reporter
IRCTC Share Price Prediction 2023
In 2023, the average price for IRCTC shares is predicted to be around ₹605. The minimum price could potentially drop to ₹560, while the maximum price could rise to ₹680. This prediction takes into account the company’s ongoing digital transformation efforts and the expected growth in the online travel booking sector.
IRCTC Share Price Prediction 2024
By 2024, the average price for IRCTC shares is projected to be around ₹700. The minimum price could be around ₹650, while the maximum price could soar to ₹800. This growth is expected to be driven by the company’s expansion into new markets and the increasing adoption of digital platforms for travel and tourism services.
IRCTC Share Price Prediction 2025
In 2025, the average price for IRCTC shares is predicted to reach ₹850. The minimum price could attain ₹800, while the maximum price could reach ₹950. This prediction is based on the company’s strategic partnerships and the expected growth in the Indian railway industry.
IRCTC Share Price Prediction 2026
By 2026, the average price for IRCTC shares is expected to climb to ₹1000. The minimum price could touch ₹950, while the maximum price could be around ₹1150. This growth is expected to be driven by the company’s continued innovation in the e-ticketing sector and the increasing demand for convenient travel solutions.
IRCTC Share Price Prediction 2027
In 2027, the average price for IRCTC shares is forecasted to be around ₹1150. The minimum price might reach ₹1100, while the maximum price is predicted to be ₹1300. This growth may be the result of the IRCTC’s ongoing efforts to improve customer experience and the expected dominance in the online catering services sector.
IRCTC Share Price Prediction 2028
By 2028, the average price for IRCTC shares is predicted to reach ₹1300. The minimum price could potentially drop to ₹1250, while the maximum price could rise to ₹1450, driven by the company’s strategic initiatives to expand its tourism packages and the increasing popularity of domestic tourism in India.
IRCTC Share Price Prediction 2029
In 2029, the average price for IRCTC shares is expected to climb to ₹1450. The minimum price could be worth ₹1400, while the maximum price could achieve ₹1650. IRCTC’s investments in technology to improve its services and the expected growth in the digital payments sector may be the main factors.
IRCTC Share Price Prediction 2030
Finally, in 2030, the average price for IRCTC shares is forecasted to be around ₹1600. The minimum price could potentially plunge to ₹1550, while the maximum price could rise to ₹1850. This growth is expected to be driven by the company’s long-term vision for digital transformation and the increasing demand for online travel services in India.
IRCTC Price Forecast: Experts’ Opinions
The stock of IRCTC has seen an approximately 11% increase over the past three months, providing a glimmer of hope for investors who have been patiently waiting to realize profits.
Vaishali Parekh, the Vice President of Technical Research at Prabhudas Lilladher, noted, “The stock has dipped from the Rs 675 mark and has once again fallen below the crucial support level of Rs 625, indicating a potential further decline with Rs 600 emerging as the next significant support level. For a positive shift in trend, the stock needs to surpass the Rs 635-638 range, which would stabilize the trend and potentially lead to further growth.”
Research Analyst at GCL Broking, Vaibhav Kaushik, commented, “The stock is experiencing downward pressure today due to the introduction of a new railway ticketing policy. However, the stock has strong support at Rs 590, so purchasing during these dips is recommended with a stop loss of Rs 585, aiming for a target of Rs 650.”
Ritu Singh, a senior research analyst at Drsfinvest, added, “The monopoly of IRCTC in the online train ticket booking sector is likely to face competition with the entry of Adani Enterprises. This could lead to a further decline in the stock, continuing its selling trend to potentially reach Rs 590 in the near future.”
IRCTC Q4 Financial Performance
Indian Railway Catering & Tourism Corporation Ltd (IRCTC) has announced a 30% increase in net profit, reaching Rs 279 crore for the quarter ending March 31, 2023, up from Rs 214 crore in the same period last year.
The company’s revenue surged by 40% to Rs 965 crore in Q4FY23, compared to Rs 691 crore in Q4FY22. When broken down by segment, the catering business revenue was ₹395.77 crore in Q4FY23, marking a 48.67% growth from ₹266.19 crore in Q4FY22. Revenue from Rail Neer also saw a significant increase of 34.35%, reaching ₹73.36 crore in Q4FY23, up from ₹54.60 crore in the same quarter the previous year. In terms of operating profit, IRCTC’s EBITDA stood at Rs 324.6 crore in Q4FY23, a 16.5% YoY increase. However, EBITDA margins shrank to 33.6% in Q4FY23 from 40.3% in Q4FY22.
IRCTC has proposed a final dividend of ₹2 per share (100%) for FY23. This decision came after robust profitability, with the final dividend pending approval from shareholders at the forthcoming annual general meeting.
Should You Invest In IRCTC Share? Here’s The Best Entry Point
IRCTC, a government enterprise, holds a unique position in India’s railway and tourism sectors. It has a monopoly in online railway ticketing, and its operations extend to catering, tourism, and packaged drinking water. The company has consistently demonstrated strong financial performance, with steady growth in revenue and profits. However, it faces potential challenges, such as the entry of private competitors and changes in government policies, which could impact its market dominance.
Hence, considering all these, it is recommended to invest in this share at a price of around ₹580 for a stable return in the long term.
Conclusion
IRCTC, a subsidiary of the Indian Railways, has been a game-changer in revolutionizing railway services in India. Its digital platform has made ticket booking, catering, and tourism services more accessible and efficient for millions of Indians. This digital transformation has not only improved customer experience but also significantly contributed to IRCTC’s revenue growth.
The company’s shares have been in the spotlight due to its unique business model and consistent performance. The introduction of private players in the railway sector could stimulate competition, potentially driving innovation and efficiency. However, it could also pose challenges to IRCTC’s market dominance.
IRCTC’s packaged drinking water segment, ‘Rail Neer,’ has been a significant contributor to its revenue. The company’s expansion plans in this segment could further boost its financial performance.
Hence, the share price gave an outstanding return over the few months, and analysts expect it to surge further in the upcoming months if IRCTC successfully attracts new investors with its market dominance. However, our IRCTC share price prediction advises investors to do their own research and conduct investment advice before investing in this share.
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