I R C T C (IRCTC)
StalwartFairStock Score: 72/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹497.5 |
| Market Cap | ₹39,800 Cr |
| P/E Ratio | 28.58 |
| ROCE | 49.03% |
| ROE | 38.89% |
| Dividend Yield | 1.91% |
| Profit Growth | -0.18% |
| Debt/Equity | 0.02 |
| Sales Growth | 18.06% |
| Free Cash Flow | ₹581 Cr |
| Promoter Holding | 62.4% |
| 52-Week Range | ₹462.25 — ₹739 |
| Sector | Leisure Services |
| Book Value | ₹53.86 |
Strengths
- Exceptional profitability: ROE of 38.89% and ROCE of 49.03%.
- Very strong balance sheet: Debt/Equity of 0.02, FCF of ₹581 Cr, and Altman Z-Score of 6.09.
- Piotroski F-Score of 8/9 indicates healthy operating efficiency and financial stability.
- Steady growth with sales up 10.14% and profit up 14.80%; latest quarter net margin around 27%.
- Promoter holding of 62.40% aligns long-term interests.
Concerns
- Valuation is demanding: P/E of 32.96 and P/B of 12.04 are far above intrinsic estimates.
- Negative margin of safety of -320.57% relative to Graham Number of ₹135.42.
- DCF intrinsic value of ₹174.48 is substantially below the current price of ₹551.35.
- Moderate growth of 10-15% may not be enough to justify the premium valuation over time.
AI Analysis
Let me start with what I like. IRCTC earns 38.89% on equity and 49.03% on capital employed, with virtually no debt. That is the signature of a business with real pricing power and a protected niche. It also produces cash: ₹581 Cr of free cash flow, and a Piotroski score of 8/9 confirms the balance sheet is healthy. Add the 62.40% promoter holding and you get a shareholder-aligned, financially robust enterprise. Growth is steady but not explosive: sales rose 10.14% and profit 14.80%, and the latest quarter delivered ₹1,449 Cr revenue and ₹394 Cr net profit. That is around 27% net margin. For a travel-related business, that is an impressive margin. But admiration must not turn to overpayment. The stock sits at ₹551.35, a P/E of 32.96 and P/B of 12.04. Benjamin Graham would look at book value of ₹45.79 and earnings power, and his Graham Number comes to only ₹135.42. The DCF value, at ₹174.48, is far below the market price. The negative margin of safety, -320.57%, tells me the price already discounts many years of excellent performance. A great company is not automatically a great investment. At this price, I am not acquiring value; I am asked to pay for perfection. If growth disappoints, there is enormous room to fall. The 1.49% dividend is little protection. I would wait for a margin of safety, or for earnings to grow substantially into today's valuation. Until then, this stays on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer