IRCTC share price, today, and history
The Indian Railway Catering and Tourism Corporation, also known as IRCTC, is a government-owned company that deals with catering, tourism, and online ticketing services for Indian Railways. It has exclusive rights to provide online ticketing for Indian Railways, making it a vital component of the country’s railway system. Due to its significance in the Indian travel and tourism industry, investors keep a close eye on IRCTC’s stock price.
History of IRCTC
IRCTC, a subsidiary of Indian Railways, was established in 1999 to manage its catering and tourism services. The main goal was to upgrade the quality of catering and other related services provided by Indian Railways. In 2002, IRCTC introduced its online ticketing platform, which significantly improved customer service and decreased the need for physical ticketing.
Over time, IRCTC has broadened its range of services to offer tourism packages, hotel reservations, and travel insurance. Additionally, the company has ventured into non-railway ventures like e-commerce and selling packaged drinking water.
IRCTC’s IPO
In 2019, IRCTC launched an IPO to raise funds for its expansion plans and to reduce the government’s stake. The IPO was oversubscribed by more than 111 times, and the issue price was set at Rs. 320 per share. The stock was listed on the BSE and NSE at a premium of 128% at Rs. 644 per share.
IRCTC Share Price Today
As of April 29, 2023, IRCTC’s share price is Rs. 4,082.50 on the BSE and Rs. 4,077.65 on the NSE. Over the past three years, the share price has more than doubled, indicating strong growth since its listing. The 52-week high of the stock is Rs. 4,434.70 and the 52-week low is Rs. 2,351.05.
Factors Influencing IRCTC Share Price
Several factors can affect IRCTC’s stock price, such as market sentiment, economic conditions, and company-specific factors. Key factors that can influence IRCTC’s stock price include:
1. Railway passenger traffic –
The earnings of IRCTC are dependent on the number of passengers who travel on Indian Railways. Hence, any change in passenger traffic can have an impact, whether positive or negative, on the company’s revenue.
2. Tourism and travel trends –
IRCTC, being a significant participant in the tourism and travel sector, is impacted by both local and global travel patterns, which affect its revenue.
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3. Competition –
IRCTC’s earnings can be affected by market changes or new competitors that emerge both in India and internationally.
4. Government policies –
Changes in government policies and regulations can affect the operations and earnings of IRCTC, which is a public-sector enterprise.
5. Economic conditions –
IRCTC’s profits could be affected by economic factors, such as inflation, interest rates, and market conditions, just like any other company.
IRCTC’s Financial Performance
Since its listing, IRCTC has demonstrated strong financial performance, consistently increasing its revenue and earnings. In the fiscal year 2021, the company’s revenue was Rs. 2,424.8 crore and its net profit was Rs. 511.3 crore, indicating growth of 36% and 24%, respectively, over the prior year. The majority of IRCTC’s revenue comes from its online ticketing platform, which made up 72% of total revenue in FY2021.
1. E-ticketing –
The biggest platform for booking Indian Railways tickets online is IRCTC’s e-ticketing platform. To generate a substantial source of revenue, the company levies a minor convenience charge on each transaction.
2. Catering –
Indian Railways offers catering services on trains and at stations through IRCTC. Recently, the company has made efforts to enhance the quality of its catering services by introducing new menus and food choices for passengers.
3. Tourism and travel packages –
IRCTC provides a range of travel and tourism packages that include pilgrimage tours, hill station packages, and adventure tourism packages. Additionally, the company offers hotel bookings and travel insurance services.
IRCTC’s Future Plans
The IRCTC has plans to expand and grow in the upcoming years. They are aiming to increase their presence in the tourism and travel sector by launching new tourism packages and services. Moreover, they are planning to expand their e-commerce business, which includes the sale of railway-related products and services, such as e-tickets, rail tour packages, and other merchandise.
IRCTC is not just focusing on its core business areas but is also exploring other sectors like food processing and logistics. They are planning to establish new food processing units across the country and expand their logistics and supply chain operations.
Conclusion
IRCTC is a major company in India’s travel and tourism industry, and its stock price is carefully monitored by investors. It has demonstrated significant growth since being listed, and its online ticketing platform is the largest in the country. IRCTC aims to expand its offerings in the tourism and e-commerce fields while also enhancing the quality of its catering and other services, which should lead to further growth in the future.
Investors must consider various factors such as market sentiment, economic conditions and company-specific factors that can impact the share price of IRCTC and other stocks before making any investment decisions.
