IRCTC share price can rally up to Rs 900, says Macquarie; stock rises 3%

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) jumped 2.8% on Friday to Rs 784.50 on the BSE after brokerage firm Macquarie initiated coverage on the stock with an ‘outperform’ rating at a target price of Rs 900 per share, which implies a potential upside of 14.7% from the stock’s current levels.

Macquarie said IRCTC’s monopoly in Indian Railways’ e-ticketing and catering services is its key strength. The brokerage firm said it expects railway modernization and the faster rollout of premium trains to act as significant catalysts, projecting a potential twofold return on the stock on the back of India’s ambitious railway modernization plans.

The brokerage also pointed to IRCTC’s robust financial metrics, including a 30% free cash flow margin and over 30% return on equity (ROE) and return on invested capital (ROIC).


IRCTC, the only entity authorized by Indian Railways to provide catering services, online railway tickets, and packaged drinking water, has been integral to the modernization and professionalization of railway services.

The company operates one of the most heavily transacted websites in the Asia-Pacific region and has diversified into non-railway catering services, e-catering, executive lounges, and budget hotels, striving to become a comprehensive solution provider for customers.

Despite its strengths, IRCTC shares have faced challenges, falling more than 25% over the past six months compared to a more than 3% decline in the BSE Sensex during the same period. The stock had closed at Rs 763.50 on Thursday before the recent surge.

IRCTC September Quarterly Results

In its September quarter earnings, IRCTC reported a 4.48% year-on-year rise in net profit to Rs 307.86 crore, up from Rs 294.67 crore in the same quarter last year. Revenue from operations grew 7.2% to Rs 1,064 crore, while other income surged 27% year-on-year to Rs 59.97 crore during the quarter.

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