Indian Railway Catering And Tourism Corporation Ltd.
ISIN: INE335Y01020 • Market Cap: ₹39,072 Cr
The 5-Pillar Quality Audit for Indian Railway Catering And Tourism Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (30.5%), Return on Capital Employed (45.9%), and equity compounding (35.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (15.3%) and 3Y PAT CAGR (11.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 28.05 vs PEG of 3.60 and Dividend Yield of 1.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.4%, backed by 18.8% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 45.9%)
Indian Railway Catering And Tourism Corporation Ltd. generates exceptional return on capital employed of 45.9%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 35.9%)
Shareholder equity compounds at a healthy 35.9%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 15.3%)
Revenue has expanded at 15.3% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking IRCTC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 82/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare IRCTC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Indian Railway Catering And Tourism Corporation Ltd. (IRCTC)Current | 82/100 | ₹39,072 Cr | 28.05 | 45.9% | 0.00 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Indian Railway Catering And Tourism Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Indian Railway Catering And Tourism Corporation Ltd. (IRCTC)?
Indian Railway Catering And Tourism Corporation Ltd. has a RupeeTools Fundamental Score of 82/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (84/100), Growth (78/100), Valuation (60/100), and Ownership Quality (78/100).
Q:Is IRCTC fundamentally strong for long-term investment?
Yes, IRCTC exhibits solid fundamental strength with a 82/100 score, driven by a return on equity of 35.9% and a debt-to-equity ratio of 0.00.
Q:Does IRCTC pass the Coffee Can Investing filter?
Yes! IRCTC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does IRCTC compare against other Consumer Services peers?
Within India's Consumer Services sector, IRCTC trades at a P/E of 28.05 and generates an ROCE of 45.9%. Compare its 5-Pillar score of 82/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.