Fact based stock research
Indian Railway Catering & Tourism (NSEI:IRCTC)

INE335Y01020

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Indian Railway Catering & Tourism stock research in summary

irctc.co.in

ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Indian Railway Catering & Tourism (Diversified Support Services, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Indian Railway Catering & Tourism are low in value (priced high) with a consolidated Value Rank of 7 (worse than 93% of alternatives). But they show above-average growth (Growth Rank of 53) and are safely financed (Safety Rank of 90, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Indian Railway Catering & Tourism's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Indian Railway Catering & Tourism exhibits low value (Obermatt Value Rank of 7), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 53). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 90) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	7
Growth Rank	53
Safety Rank	90
Combined Rank	38

Country	India
Industry	Diversified Support Services
Index
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Indian Railway Catering & Tourism

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	10	3	3	7
GROWTH
GROWTH	97	91	69	53
SAFETY
SAFETY	83	96	94	90
SENTIMENT
SENTIMENT	n/a	3	17	^new
360° VIEW
360° VIEW	n/a	47	34	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Indian Railway Catering & Tourism is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	10	3	3	7
GROWTH
GROWTH	97	91	69	53
SAFETY
SAFETY	83	96	94	90
COMBINED
COMBINED	57	84	51	38

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Indian Railway Catering & Tourism the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 7 (worse than 93% compared with alternatives), Indian Railway Catering & Tourism shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Indian Railway Catering & Tourism. Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Indian Railway Catering & Tourism's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 5, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Indian Railway Catering & Tourism. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 7 and Dividend Yield, which is lower than 69% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 7, is a sell recommendation based on Indian Railway Catering & Tourism's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Indian Railway Catering & Tourism? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Indian Railway Catering & Tourism? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Indian Railway Catering & Tourism may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	1	3	1	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32	8	9	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	1	1	5
DIVIDEND YIELD
DIVIDEND YIELD	40	29	29	31
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	10	3	3	7

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Indian Railway Catering & Tourism; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Indian Railway Catering & Tourism shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Indian Railway Catering & Tourism. Profit Growth, with a rank of 55 (better than 55% of its competitors), and Capital Growth, with a rank of 97, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Stock Returns are at a rank of 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	84	82	73	42
PROFIT GROWTH
PROFIT GROWTH	n/a	96	54	55
CAPITAL GROWTH
CAPITAL GROWTH	n/a	4	62	97
STOCK RETURNS
STOCK RETURNS	98	99	57	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	97	91	69	53

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Indian Railway Catering & Tourism.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2024, the company Indian Railway Catering & Tourism has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Indian Railway Catering & Tourism is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Indian Railway Catering & Tourism. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 51, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. Finally, Liquidity is also good at a rank of 92, which means that the company generates more profit to service its debt than 92% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Indian Railway Catering & Tourism has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Indian Railway Catering & Tourism but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	82	92	86	89
REFINANCING
REFINANCING	42	53	53	51
LIQUIDITY
LIQUIDITY	100	90	96	92
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	83	96	94	90

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Indian Railway Catering & Tourism and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	9	7	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	66	^new
MARKET PULSE
MARKET PULSE	n/a	23	14	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	17	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Indian Railway Catering & Tourism.
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