IRCTC Share Price Falls Despite 106% Q4 Profit Jump, 14% Drop in 6 Months; should you buy, sell, hold?

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IRCTC share price fell more than 2% after opening green on BSE on Tuesday, despite a 105.7% increase in net profit to Rs 213.78 crore for the quarter ending March 31 2022. The company has also announced a dividend of Rs 1.5 per share of nominal value of Rs 2 each for the financial year 2021-2022, subject to shareholder approval at the next Annual General Meeting (AGM). This final dividend is added to the interim dividend of Rs 2 per share. Analysts say that despite strong Q4FY22 earnings where both revenue and earnings beat estimates, the market seems to have priced in the good results already.

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“Technically, until IRCTC stock does not close above 711, the trend could remain sideways or even negative. Strong support can be seen at 662,” said AR Ramachandran, co-founder and trainer , Tips2Trades, at FinancialExpress.com.

IRCTC share price has fallen 14% in the past six months and 19.2% so far in 2022. The company said its revenue from internet ticketing stood at Rs 292, 82 crore, compared to Rs 212.01 crore. From catering, its revenue quadrupled to Rs 266.19 crore from Rs 67.38 crore in the same quarter a year ago. Rail Neer’s revenue stood at Rs 51.88 crore from Rs 27.80 crore.

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Technical analysts said that this Indian Railway Company (IRCTC) has been trading with the corrective bias since October 2021. After the steep drop in the initial phase, it is experiencing a gradual decline. “It is currently hovering around the resistance area of ​​the long-term moving average (200 EMA) on the daily chart. A break above 750 could fuel a sustained recovery, otherwise the sideways movement will continue,” Ajit said. Mishra, Vice President – Research, Religare Broking, at FinancialExpress.com.

The Indian Railway Catering and Tourism Corporation said the company’s business operations are gradually getting back on track in line with the lifting of restrictions imposed by state and central governments. IRCTC’s EBITDA stood at Rs 303.14 crore in March 2022, up 84.22% from Rs 164.55 crore in March 2021. Its EPS fell to Rs 2.67 in March 2022 against Rs 6.49 in March 2021.

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The stock recommendations in this story come from the respective research analysts and brokerage firms. The AU Times Online takes no responsibility for their investment advice. Capital market investments are subject to rules and regulations. Please consult your investment advisor before investing.

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