In this article we can explore the possibility of IRCTC as a Multibagger 2021 Stock based on Value Investing principles.
| Website | www.irctc.com |
| CMP | Rs.₹ 801 |
Indian Railway Catering & Tourism Corporation Ltd
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27 th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems. The authorized capital of the company is 250 crores and paid up capital is 160 crores, fully subscribed by Ministry of Railways, Government of India. It’s registered and Corporate Office is situated at New Delhi
- Fourteen Rail Neer Plants at Nangloi-Delhi, Danapur-Bihar, Palur-Tamil Nadu, Ambernath-Maharashtra, Amethi (Uttar Pradesh), Parassala-, Tamil Nadu, Bilaspur (Chhatisgarh) Hapur (Uttar Pradedh), Sanand- Gujaratd, Mandideep-Madhya Pradesh, Jagiroad-Assam, Maneri-(Madhya Pradesh), Nagpur, (Maharashtra) and Sankrail-Kolkatta
- 11 Base Kitchens at located at New Delhi, Howrah, Ahmedabad, Patna, Mumbai Central, Mumbai CST, Ballarshah, Nagpur, Balasore, Sealdah and Kharagpur Jn 5 Zonal Offices, namely, New Delhi, Mumbai, Kolkata, Chennai, Secundrabad
- Five Zonal Offices at New Delhi, Mumbai, Kolkata, Chennai & Secundrabad
- Ten Regional Offices at Lucknow, Chandigarh, Jaipur, Bhopal, Ahmadabad, Guwahati, Bhubaneswar, Patna, Ernakulam and Bangalore
- One Internet Ticketing Office at New Delhi
- One Internet Ticketing Office at New Delhi
Products
- Catering & Hospitality
- Internet Ticketing
- Travel & Tourism
- Rail Neer packaged Drinking Water
Services
- Online ticketing
- Catering and hospitality
- Tourism
- Train operations
Profit & Loss
Warren Buffet, Value & Growth Checklist
| Capitalization | 65000 Crore |  |
| Sales Increasing past 3 Years | No, due to Covid | |
| Profit Increasing past 3 Years | Yes, 30% |  |
| Durable Competitive Advantage | Yes, No visible competitors |  |
| PE Ratio | 155 | |
| PB Ratio | 40X | |
| Debt Equity Ratio | 0.07 | |
| Intrinsic Value Discount | 0% | |
| Promoter Holding & Increase | 67%, No Increase | |
| Multibagger Returns | 0% | |
Positives
- Company is almost debt free
- Company is expected to give good quarter
- Company have huge economic moat
- Company has a good ROE & ROCE
- Company have high interest coverage ratio
Negatives
- Stock is trading at 40X of Book Value
- Stock having NO Intrinsic Value discount
- The company has delivered a poor sales growth in the past 3 years
Summary
As per the Value Investing grounds the company have NO Multibagger Potential at current price
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