The state-owned company reported a 196 per cent surge in its net profit for the quarter ended June 2022, and the shares of IRCTC were trading lower today. The stock of IRCTC fell 0.95 per cent to Rs 666.70 against the previous close of Rs 673.10 on the BSE. After three days of a row of gains, the large cap stock has fallen.
It opened 2.66 per cent higher at Rs 691. The stock rose 2.71 per cent to Rs 691.35. It saw profit-booking fall to an intraday low of Rs 651.65, losing 3.19 per cent on the BSE.
The firm's shares are trading higher than the 50 day, 20 day and 5 day moving averages, but are less than 100 day and 200 day moving averages. The stock lost 20 per cent in 2022, but rose 29.48 per cent in a year.
The market cap of IRCTC fell to 53,240 crore on the BSE. The firm's share change hands amount to a turnover of Rs 15.23 crore, which is the total of 2.27 lakh shares.
The firm that provides ticketing, catering, and tourism services for the Indian Railways reported a profit of 246 crore for the quarter ended June 30. Revenue from operations increased 251 per cent to Rs 853 crore in Q 1 of the year-ago period, from Rs 243 crore in Q 1 FY 22.
In Q 1 FY 23 the total income rose to Rs 877 crore compared to Rs 258 crore in Q 1 FY 22.
All the segments were Earnings before interest and taxes EBIT positive, according to Jinesh Joshi Research Analyst, Prabhudas Lilladher. Tourism achieved 1.1 percent of the EBIT breakeven for the first time since the Pandemic. EBITDA went up 187. 8 per cent of the YoY to Rs 320.9 crore PLe was Rs 300 crore with a margin of 37.6 per cent PLe of 41.5 per cent as opposed to 45.8 per cent in 1 QFY 22. The stock is trading at 54 times our FY 24 EEPS estimate of Rs 12.5. We currently have a HOLD rating on the stock with a target price of Rs 649. Pavitraa Shetty, Co-founder of Tips 2 Trades said, despite strong Q 1 FY 23 earnings, it is advisable for investors to book profits in IRCTC stock, as the results have already been factored in, along with technically being overbought on the charts. 700 rupees is a strong resistance. If broken daily, Rs 652 which is a strong support will lead to a much needed correction of Rs 590 -- 600.