IRCTC shares gain 5% as Macquarie initiates coverage 

Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) rose 5% on Friday after global brokerage Macquarie initiated coverage on the stock with a 'Buy' rating. It assigned a target price of Rs 900 to the railway stock.  IRCTC shares climbed 4.86% to Rs 800.65 in the current session against the previous close of Rs 763.50 on BSE. IRCTC shares touched a 52 week high of Rs 1,148.30 on May 22, 2024 and fell to a 52 week low of Rs 755.40 on January 10, 2025. 

Market cap of the firm rose to Rs 62,920 crore. In a year, the stock has fallen 16.56%. 

IRCTC stock has a one-year beta of 1.4. This signals the stock has high volatility. 

A total of 2.05 lakh shares of the firm changed hands amounting to a turnover of Rs 16.08 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of IRCTC stands at 34.8, signaling it's trading neither in the overbought nor in the oversold territory. IRCTC stock trades higher than the 5 day, 10 day but lower than the 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Macquarie cited railway modernisation and faster launch of premium trains behind its bullish stance on the stock. 

The brokerage reportedly sees a potential two times return due to India's railway modernisation ambitions, ET NOW reported. 

Macquarie said IRCTC enjoys a monopoly position for Indian railways e-ticketing and catering services adding that IRCTC generates 30 per cent free cash flow (FCF) margin and 30 per cent-plus return on equity. The brokerage also cited IRCTC's strong net cash positions. 

IRCTC reported a 4% rise in net profit to Rs 308 crore in the September 2024 quarter against Rs 295 crore in the last-year quarter. Consolidated revenue from operations climbed 7% to Rs 1,064 crore against Rs 992 crore posted in the corresponding period of last year.