IRCTC’s stock surged over 3% after Macquarie initiated coverage with an Outperform rating with a target price of ₹900.
The shares opened at 772.80, with a high of 789.85 and a low of 755.30. The stock’s 52-week high stands at 1,138.90, while the 52-week low is 755.30.
As per Macquarie, the company holds a dominant position in the market due to its monopoly in Indian Railways’ e-ticketing and catering services.
IRCTC’s strong financials, with a 30% free cash flow margin and 30% ROE/ROIC, reflect its robust profitability. Growth catalysts include railway modernization efforts and the launch of premium train services, which are expected to boost revenue.
Macquarie sees potential for 2x returns, fueled by IRCTC’s strategic role and high-margin business model.
As of 11:10 AM, IRCTC shares were trading 2.95% higher at Rs 786.35.
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