IRCTC shares surge on brokerage 'buy' call

The brokerage cited IRCTC's monopoly in Indian Railways' e-ticketing and catering services as a key strength. It expects railway modernization and the faster rollout of premium trains to act as significant catalysts, projecting a potential twofold return on the stock.

The brokerage also highlighted IRCTC's robust financial metrics, including a 30% free cash flow margin and over 30% return on equity (ROE) and return on invested capital (ROIC).

IRCTC, the sole entity authorized by Indian Railways for catering, online ticketing, and packaged drinking water, has played a crucial role in modernizing railway services. It operates one of the most heavily transacted websites in the Asia-Pacific region and has diversified into non-railway catering, e-catering, executive lounges, and budget hotels.

IRCTC's consolidated net profit rose 4.47% to Rs 307.87 crore in Q2 FY25 compared with Rs 294.68 crore in Q2 FY24. Revenue from operations grew by 7.21% YoY to Rs 1,064 crore in Q2 FY25.