IRCTC stock has rallied ~500% since listing in Oct-2019 but down 50%

 Video: https://youtu.be/LK_RwnAc0vo?si=OGw7zb9TwSXbayWZ

In my 13 yrs of investing, i have seen many cases where stocks run up like a rocket for a limited time period and then creates fan base on social media. The retail investors get trap everytime

I rule I follow, is never buy when everybody is greedy !!!

This stock is great example !!!!

Valuation is 99% for me as a rule of investing and rest everything is 1% to me

  • IRCTC stock has rallied ~500% since listing in Oct-2019   but down 50%
  • Passengers travelled per month: 4 crore  
  • IRCTC is the only entity authorized by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India
  • Operates one of the most transacted website www.irctc.co.in in the Asia-Pacific region 
  • IRCTC is one of the most transacted websites in Asia Pacific with a transaction volume of over 34.5mn per month and 6.27mn logins per day 
  • Dominant market share of c.80% in reserved Rail tickets 
  • EBIT Margin % :  79% -  85% 
  • Key brands providing meals include Domino’s, Subway, Haldiram’s, KFC (  pay IRCTC a 15% commission on order value )
  • e-catering:  40,000 meals in a day  
  • For the year FY23 as a whole, the revenue which has been lifetime high for the IRCTC came to be INR3,541.5 crores and grew by 88.5% year-over-year.
  • EBITDA margin came at 36% versus 46.4% year-over-year given the changes in revenue mix
  • Life time high net profit before exceptional items also came. That is at INR978.7 crores versus INR663.6 crores from the last year    
  • Cash  INR1,934 crores
  • The services' convenience fee, which is contributing nearly 75% to profit
  • " Our intention is to increase our revenue. They are more and more because -- and so not only to retain the Internet Ticketing, but to show us good growth by providing good services to the customer. "  


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