IRCTC shares: Experts see big upside after strong Q3 results. Should you buy?

Indian Railway Catering and Tourism Corporation or IRCTC share price ended higher on Thursday after strong Q3 results for October to December 2022 quarter. In Q3FY23, IRCTC’s revenue shot up by 69.90 per cent in year-on-year (YoY) terms whereas EBIDTA of all segments of IRCTC were reported in positive zone. According to stock market experts, IRCTC shares are expected to come out of the base building mode and it may go up to ₹750 apiece levels in medium term.

On what IRCTC shares’ chart pattern suggests after strong Q3 results, Sumeet Bagadia, Executive Director at Choice Broking said, “IRCTC shares have immediate support placed at ₹635 to ₹630 apiece levels while in case of a bounce back, it may go up to ₹680 apiece levels on higher side. On breaching ₹680 levels, IRCTC share price may climb up to ₹710 per share levels.”

Advising positional investors to hold for longer perspective, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “On daily chart pattern, IRCTC stock has made double bottom formation that signals two way trade. However, one should go with sideways to positive bias and maintain buy on dips strategy maintaining stop loss at ₹605 apiece levels. The stock may go up to ₹690 apiece levels in next one to two months. However, IRCTC shares are expected to go up to ₹720 and ₹750 apiece levels in medium to long term perspective.”

Highlighting the takeaways from IRCTC Q3 results 2023, Jinesh Joshi, Research Analyst at Prabhudas Lilladher said, “IRCTC’s revenues increased 69.9% YoY to ₹9,181mn against our estimates of ₹8,791mn. All the segments were EBITA positive with internet ticketing reporting the highest EBITA margin of 84.2%.”

Prabhudas Lilladher expert went on to add that IRCTC’s PAT increased 22.4% YoY to ₹2,555mn against 51.7% in 3QFY22. He advised IRCTC shareholder to hold the counter.

IRCTC on Thursday reported a consolidated net profit of ₹256 crore for October to December 2022 quarter (Q3FY23), up 22.8 per cent from ₹208 crore reported in Q3FY22. IRCTC also declared an interim dividend of ₹3.50 per equity share, which is 175 per cent of the paid-up share capital of the company.