IRCTC Share Price Target Revealed: Will It Hit Rs 1,138.90 in 2024? Know what is the confirmation
On August 28, 2024, the Indian Railway Catering and Tourism Corporation (IRCTC) share price is expected to continue its upward trajectory, according to market experts. IRCTC, a leading player in the Indian railway catering and tourism industry, has been a consistent performer in the stock market, attracting the attention of investors and analysts alike.
Main Points
Analysts have been closely monitoring IRCTC stock performance and have provided their insights on the company’s future prospects. According to Arihant Capital Markets, IRCTC focus on serving Mail Express trains running for more than 12 hours, which are the primary target group for Catering services, is expected to drive revenue growth and improve margins in the Catering segment.
Prabhudas Lilladher, another brokerage firm, has a ‘Reduce’ rating on the stock with a target price of Rs 811. However, the firm’s analysis suggests that IRCTC’s Ebitda missed its estimates due to higher catering and other expenses.
IRCTC Stock Performance Analysis: Key Factors
IRCTC stock performance has been influenced by several factors, including its strong financial results, expansion plans, and industry trends. In the June quarter of 2024, the company reported a 32.5% rise in net profit, with the Catering and Rail Neer segments being the main contributors to the profit. The company’s capacity expansion plans, such as adding three more Rail Neer plants in Vijayawada and two other locations, are expected to enhance its production capabilities and profitability.
IRCTC Dividend History and Yield
IRCTC has been consistent in rewarding its shareholders with regular dividends. The company recently announced a final dividend of Rs 4 per equity share for the financial year 2023-24. This dividend, along with the interim dividend of Rs 2.5 per share announced earlier, brings the total dividend for the year to Rs 6.5 per share. The company’s dividend yield, calculated as the ratio of dividends paid per share to the current share price, is an important factor for investors to consider when evaluating the stock’s attractiveness.
Is IRCTC a Good Long-Term Investment?
IRCTC strong market position, diversified business model, and growth prospects make it an attractive long-term investment option for many investors. The company’s focus on expanding its catering and tourism segments, along with its plans to introduce more premium trains, are expected to drive its revenue growth and profitability in the coming years. However, investors should also consider the risks associated with investing in IRCTC, such as regulatory changes, competition, and macroeconomic factors that may impact the company’s performance.
Based on the analysis of various brokerage firms and market experts, the IRCTC share price target for the next six months ranges from Rs 811 to Rs 1,138.90. These targets are based on the company’s growth prospects, financial performance, and industry trends. Investors should carefully evaluate these targets and consider their own risk appetite and investment goals before making any investment decisions.
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