IRCTC Share price target 2023, 2024, 2025, 2026, and 2030: In this article, you will learn about IRCTC share price target 2023, 2024, 2025, 2026, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term To make it clear for you, in this article we have mentioned IRCTC share price target 2023, 2024, 2025, 2026, and 2030, along with the fundamentals of the company.
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IRCTC Share Price Target 2023, 2024, 2025, 2026,2030: Company Profile
IRCTC is a distinguished mini Ratna company, incorporated in 1999 as an extended arm of the Indian Railways. The company was formed with the objective to upgrade its catering and hospitality services to appropriately meet the needs of the modern age.
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a wholly-owned entity of the Government of India, under the administrative control of the Ministry of Railways. IRCTC strives to encourage international and domestic tourism in India through public-private participation.
IRCTC is the only entity authorized to deliver catering, online ticket booking, and packaged drinking water in trains and railway stations. Along with a slew of other services like global reservation systems, budget hotels, e-catering, and executive lounges, IRCTC aims to create a one-stop solution for domestic and international customers, to cover their traveling, accommodation, and tourism needs.
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Revenue From Operations
IRCTC Share Price Target 2023
IRCTC is the only railway ticket booking platform, there is no competition for IRCTC. The majority of the IRCTC revenues are from the internet ticketing segment. IRCTC is recently rallied a lot in the past 1 year, the stock may move in consolidation mode for the next few years and then rally again.
Over the years, IRCTC has developed a business model that has given the company a very firm footing in the travel and tourism of the country. With diverse product and service portfolios, IRCTC aims to provide its valued customers with integrated solutions under one roof. In addition to services such as global reservation systems, catering, and executive facilities, IRCTC also provides multi-service solutions to our domestic and international customers with respect to tour and travel, accommodation, and other tourism-related requirements. IRCTC share price target for 2023 is Rs 810.
|IRCTC share price target 2023|
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Strengths of IRCTC
The strengths are basically what makes the brand different from the other competitors and what the organisation excels at. Following are the strengths:
- Reach & Distribution: IRCTC has customers globally and provides its services to millions of members. This makes sure that the services are made easily available to their customers at the right time.
- Government Support: The government of India retains a major stake in IRCTC and receives full support in terms of infrastructure and funds. Government works as one of the biggest strengths of IRCTC and helps make bold decisions within the organisation.
- Monopoly of Train Travel & Ticketing: IRCTC enjoys a profitable business in providing ticketing, catering, and tourism services because there is no privatisation in railways in India.
- Online Ticketing: IRCTC has pioneered internet-based rail ticket booking through its website, as well as from mobile phones. However, there are several aggregator websites for online ticket booking but somehow the customers prefer booking direct from IRCTC due to the facility of additional cost-cutting, which is charged if booked from aggregator’s platform.
- Catering & Hospitality: Again, IRCTC has a monopoly in catering and hospitality at Indian Railways. IRCTC operates several food plazas, Jan Ahaar cafeterias and refreshment rooms at various railway stations. Also, IRCTC has a facility to order food online and get it delivered to your seats.
- Stable Monopolistic Reputation: IRCTC provides services at the best prices even when there is no competition. This has established the faith and goodwill of IRCTC among people.
- Milestones: IRCTC system is evolving rapidly according to advancement in technology. In 2019, IRCTC had launched a payment wallet named iMudra, to provide an easy way to book railway tickets, pay, send or withdraw money which was the biggest milestone in the Indian railway sector.
Weaknesses of IRCTC
The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:
- IRCTC Website: The website is kind of frustrating for the customers because the user has to login again and again to book a ticket and sometimes the website is not supportive and user friendly.
- Food Quality: However, the food served by IRCTC is hygienic but the quality that means the taste of food is as such not up to the mark and it is usually served cold which is likely disappointing for a passenger who is in a journey of long hours.
- Promotional Activities: The promotional activities carried out by the IRCTC do not seem very attractive as such. They need to improve their brand management to attract the next generation of customers.
- Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas IRCTC needs to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par as per the vision of the company.
- Failed Transactions: Whenever there is a high traffic on the IRCTC website it usually increases the rate of failed transactions significantly, e.g. at the time of Tatkal booking.
- Poor Customer Support: Due to the monopoly of IRCTC, the customer support quality is something which is not looked after by the IRCTC team. The attitude of customer executives while solving queries of customers says a lot about IRCTC’s customer support quality. IRCTC should certainly take serious action in this regard.
- Slow Decision Making: Organisational decisions are made at IRCTC but when it comes to implementation, the organisation has always been slow and this is becoming a major concern in a service industry where people are looking for the best services at all times.
- Private Operators Getting Better: Various services offered by IRCTC still contain major room for improvement. On the other hand, private operators are providing quality services than those offered by IRCTC, and these operators are getting better and stronger day by day.
Opportunities for IRCTC
Opportunities are the favourable external factors that may give the organisation a competitive advantage over others. The opportunities of IRCTC are as follows:
- Population: The population has been growing and is expected to grow at a positive rate for the upcoming years. This is beneficial for India as there will be an increase in the number of potential customers that it can target.
- Increase Disposable Income: Many brands have understood that Gen Z forms 30% of the world’s population and in time will be the generation with the most disposable income. Hence, sending out messages targeting them is extremely important, especially for brands targeting young audiences.
- Booming Travel Industry: The travel industry as a whole is booming again these days, an opportunity for the IRCTC to spread its feathers to cover as many opportunities as possible.
- Huge Market: You have a huge market at your disposal, like India, where there are multiple segments available for targeting. You can easily take advantage of this opportunity to offer personalised services tailored to a different group of customers.
- No Competition: IRCTC enjoys unlimited opportunities and offers its clients the most personalised services due to the non-competitive market.
- Strategic Connections: You can also think of establishing strategic connections with private operators to improve service performance to the required level.
Threats to IRCTC
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of IRCTC are as follows:
- Technological Advancements: The technological advancements by a few competitors can pose a threat to IRCTC as today’s customers are more attracted towards new technological advancements and may be lost to competitors’ offerings thus reducing the market share of IRCTC.
- Privatisation: If the railways decide to privatise their services, this will be the biggest threat to the IRCTC. There is a vast improvement in current services of private operators and they are leaving no stone unturned to take advantage of everything.
- If Government WIthdraw: IRCTC is made by the Indian Railways and the government of India. So if by chance the country body withdraws its support to IRCTC and transfers the Indian Railways catering and hospitality handling to some private contractor at a cheaper rate will create a fatal situation for the IRCTC organisation as a whole.
- Airlines as Substitute: The continuing rise in rail fares due to Covid-19 and the availability of low-cost private airlines is a rising threat for IRCTC where the passenger’s bookings would be less and so the customers who were consuming IRCTC services will decrease.
IRCTC Share Price Target 2024
Amidst the dire circumstances and the Company being severely hit by the pandemic, IRCTC presented a reasonable balance sheet for fiscal 21. The revenue from operations for the year clocked Rs 783.05 crores as compared to Rs 2264.31 crores in the previous fiscal. IRCTC EBITDA stood at Rs 275.93 crores and the operating margin registered at 31.76%.
Due to the reasons mentioned above, PAT decreased by 62.99% from Rs 513.11 crores in 2019-20 to Rs 189.90 crores in 2020- 21. In terms of profitability, IRCTC registered a net profit margin of 21.86%.
IRCTC also remained robust on the liquidity front. Operating cash as of 31st March 2021 stood at Rs 345.02 crores and IRCTC has undertaken prudent risk management and capital allocation strategy to maintain healthy return ratios. ROCE over the past 5 years registers 12.95%, as of fiscal 21. IRCTC financial strength stems from its ability to capitalize on high entry barriers to the industry, build a strong earnings profile, and attain a debt-free status.
Given the Company’s strong performance in 20-21, the Board of Directors has recommended a final dividend of Rs 5 per share (Rs 80 Crores). As IRCTC is a monopoly company and there is no competition for the company, the company will recover fast as the pandemic ends. IRCTC share price target for 2024 is Rs 970.
|IRCTC share price target 2024|
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IRCTC Share Price Target 2025
IRCTC recently entered into a new segment of Bus-seat booking to facilitate seamless online bus booking services and enable last-mile connectivity to travelers. IRCTC envisages more such fresh business opportunities in the near future.
Internet ticketing is the main segment of IRCTC, key highlights of FY2020-21
- 57% contribution to total operating revenue.
- 361 lakh tickets booked through website (21% of online tickets).
- 808 lakh tickets booked through mobile app )46% of online tickets).
- 571 lakh tickets booked through agents (33% of online tickets).
- 4.8 lakh tickes on an average were booked per day through IRCTC website and mobile apps in FY 2020-21.
As the ticket booking from online increases, the revenue for IRCTC also increases, in the future more and more people will book tickets through online platforms which will increase the revenue of IRCTC. IRCTC share price target for 2025 is Rs 1180.
|IRCTC share price target 2025|
IRCTC Share Price Target 2026
IRCTC is the only Company authorized to sell railway tickets online; It has become a ‘One-Stop Solution’ in the travel industry, offering a range of services including online ticketing, tour packages, packaged drinking water, and catering; IRCTC is the only company to distribute packaged drinking water across all stations as well as trains in India. The Company has also installed ATVM’s for selling mineral water at lower prices. Opportunities for IRCTC;
- High growth rate in hospitality & tourism segment.
- Growth in online business.
- IT & E-Governance.
- Joint venture with other government bodies.
IRCTC currently has a monopoly on online ticketing services for the Indian Railways. It was introduced to make ticket bookings safe, easy, and convenient for customers, to completely remove the hassle of waiting in queues. With a transaction volume of more than 14.5 million per month and 2.6 million logins per day, the Company operates one of the most highly populated and transacted websites in the Asia-Pacific region.
As of March 31, 2021, more than 0.83 million passengers traveled on Indian Railways on a daily basis, which consisted of approximately 79.63% of Indian Railways’ tickets booked online. Online ticket bookings on IRCTC can be carried out at any time of the day, throughout the year.
IRCTC, today, is one of the leading travel and tourism companies in the market catering to the needs of diverse tourist segments. With the strength of being a Railway PSU, IRCTC specializes in rail tourism, and at present, is the market leader in this segment. Besides rail tourism, IRCTC has also diversified into various other tourism businesses for increasing the market share in the immensely competitive tourism market. As the country develops, tourism will automatically increase, which is a positive thing for IRCTC.
The number of foreign tourists arriving in India between January and March 2020 was 2.46 million, down by 22.6% in comparison to the same period in 2019. A total of 8,37,721 tourists arrived on e-Tourist Visa during the same period, registering a negative growth of 7.7% in comparison to 2019. Tourism is a significant source of foreign exchange earnings (FEE) for the economy. During the reference period (JanuaryMarch 2020), the foreign exchange earnings from the tourism industry stood at Rs 44,203 crore, compared to Rs 52,378 crore in the same period in 2019.
IRCTC has planned various initiatives in the financial year 2021-22, including, monetization of Chatbot Services & Train Information Enquiry Services through Third-Party Organisations/Operators, National Rail Museum booking website and Mobile App, provisions for issuance of digital bills and cashless payments in trains, ticket booking through Chatbot, EMI based payment on the e-Ticketing Mobile App, online corporate travel services for Govt./PSUs, automated payments to hotels & bus aggregators/ vendors to reduce payment time, the launch of wellness packages and tie-ups with five wellness institutions/yoga centers/hotels, etc, an agent booking module for luxury tourist trains (Maharajas’, Golden Chariot and Buddhist tours), etc. IRCTC share price target for 2026 is Rs 1,390.
|IRCTC share price target 2026|
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IRCTC Share Price Target 2030
The Indian Railways is the economic artery of India spanning over a network of 67,580 route km. It operates 9,146 freight trains; 13,523 passenger trains and manages more than 8000 stations. The network is the second-largest in the world under single management and provides an economical mode of transportation for commodities and passengers.
Indian Railways employs more than 1.4 million people and is the 8th largest employer in the world. The Indian Railways contributes significantly to nation-building efforts and acts as a facilitator for urbanization and integration of economy, culture, and polity.
In line with making India self-reliant and a 5 trillion-dollar economy by 2025, Indian Railways has embarked on a mission to transform the industry with a focus on infrastructure development, safety, and private sector involvement. The Government, in its Union Budget FY2022, allocated Rs 1.1 trillion for the Indian Railways with a CAPEX of Rs 1.07 trillion. The Indian Railways strives to consistently improve the punctuality of its mail and passenger trains to ensure customer satisfaction and enable passengers to reach their destination on time.
Indian Railways is estimated to register a gross revenue of Rs 2,17,460 crore in FY21 Freight earnings, covering a significant portion of the revenue, remained at H 81764.68 crore in Q3 FY2021. Passenger earnings in the same period stood at Rs 6718. crore due to the countrywide lockdown and general restrictions on movement. In November 2020, the Indian Railways acquired Rs 10,657.66 crore (US$ 1.44 billion) from cargo loading, reporting an increase of 4% compared to the previous year.
Indian Railways also announced that 40% of the dedicated freight corridor (DFC) will be opened for traffic by the end of FY2021 and the project is expected to be completed by June 2022. IRCTC has full support from the government and also railway sector is very important for the Indian economy. By considering all these factors. IRCTC share price target for 2030 is Rs 2,250.
|IRCTC share price target 2030|
IRCTC Share Price Target 2023, 2024, 2025, 2026, and 2030
|Year||Share Price Target|
|IRCTC share price target 2023||Rs 810|
|IRCTC share price target 2024||Rs 970|
|IRCTC share price target 2025||Rs 1180|
|IRCTC share price target 2026||Rs 1390|
|IRCTC share price target 2030||Rs 2250|
Frequently Asked Questions
What is the future of IRCTC share?
IRCTC is the only company to provide online railway ticket booking services. IRCTC is the monopoly stock and there is no competition for the company, as digitization increases online ticket booking will increase which will increase the revenues for IRCTC. IRCTC has a lot of opportunities to grow in the future.
What will be the price of IRCTC in 2025?
The price of IRCTC in 2025 will be between Rs 1180. Recently, the stock has rallied a lot, the stock may be in consolidation mode for the next few years and will rally again.
Is IRCTC a good buy for long-term
Yes, IRCTC is a good buy for long term. One must hold IRCTC in his or her portfolio for the long term. IRCTC is a monopoly company and there is no competition for the company.