Indian Railway Catering & Tourism Corporation Limited
Indian Railway Catering & Tourism Corporation Limited Fundamental Analysis
Indian Railway Catering & Tourism Corporation Limited (IRCTC.NS) shows strong financial fundamentals with a PE ratio of 27.75, profit margin of 28.37%, and ROE of 37.73%. The company generates $50.2B in annual revenue with moderate year-over-year growth of 9.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IRCTC.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIRCTC.NS demonstrates superior asset utilization.
Valuation Score
WeakIRCTC.NS trades at a premium to fair value.
Growth Score
ExcellentIRCTC.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentIRCTC.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentIRCTC.NS achieves industry-leading margins.
Key Financial Metrics
Is IRCTC.NS Expensive or Cheap?
P/E Ratio
IRCTC.NS trades at 27.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IRCTC.NS's PEG of 7.10 indicates potential overvaluation.
Price to Book
The market values Indian Railway Catering & Tourism Corporation Limited at 9.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.60 times EBITDA. This signals the market has high growth expectations.
How Well Does IRCTC.NS Make Money?
Net Profit Margin
For every $100 in sales, Indian Railway Catering & Tourism Corporation Limited keeps $28.37 as profit after all expenses.
Operating Margin
Core operations generate 31.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.73 in profit for every $100 of shareholder equity.
ROA
Indian Railway Catering & Tourism Corporation Limited generates $18.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Indian Railway Catering & Tourism Corporation Limited produces operating cash flow of $8.34B, showing steady but balanced cash generation.
Free Cash Flow
Indian Railway Catering & Tourism Corporation Limited generates strong free cash flow of $8.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.09 in free cash annually.
FCF Yield
IRCTC.NS converts 2.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.38
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How IRCTC.NS Stacks Against Its Sector Peers
| Metric | IRCTC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.75 | 25.55 | Neutral |
| ROE | 37.73% | 1262.00% | Weak |
| Net Margin | 28.37% | -42065.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.12 | 10.09 | Strong Liquidity |
| ROA | 18.68% | -1502268.00% (disorted) | Strong |
IRCTC.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Indian Railway Catering & Tourism Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
156.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
97.95%
Industry Style: Cyclical, Value, Infrastructure
High Growth