IRCTC share price rises 5% in a weak market; should you buy the stock?
Indian Railway Catering and Tourism Corporation (IRCTC) rose over 5 per cent in intraday trade on BSE on Friday in an otherwise weak market. The stock opened at ₹645.35 against the previous close of ₹646.35 and rose 5.14 per cent to hit the intraday high of ₹679.60 in Friday's trade so far. The stock traded 3.30 per cent higher at ₹667.65 around 11:45 am on BSE.
The Sensex was 0.50 per cent down at 65,360 at that time. IRCTC on Wednesday reported a 5 per cent year-on-year (YoY) decline in its Q1FY24 net profit at ₹232.22 crore. The company's profit in the same quarter of the last financial year was at was ₹279 crore.
Segment-wise, IRCTC's revenue from the internet ticketing business declined 4 per cent to ₹290 crore in the April-June quarter. The revenue from the tourism business rose 58 per cent to ₹130 crore in the June quarter. The revenue from the catering segment rose 35 per cent to ₹471 crore during the June quarter.
Also, revenue from the Rail Neer segment rose 10 per cent to ₹96 crore in the quarter under review. Read more: IRCTC Q1 results: Profit dips 5% to ₹232 crore, revenue rises by 17% The stock ended 0.38 per cent lower in the next trading session on Thursday. However, it saw decent buying interest on Friday after experts expressed their positive views on the stock.
IDBI Capitalmaintained its buy call on the stock with a target price of ₹745 after the Q1 results of the company. The brokerage firm expects catering and tourism revenues to increase 22.4 per cent YoY and 22.8 per cent YoY, respectively, in FY24E mainly led by the conversion of an additional nearly 200 trains in catering and the addition of Vande Bharat & Bharat Gaurav trains. IDBI Capital believes softness in ticketing revenue due to the
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