Life Insurance Corporation Of India (LIC) has recently disclosed that it has increased its stake in the monopoly company Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
The Insurance company has increased its shareholding from 3,97,76,221 to 4,00,42,625 equity shares which represents a total stake of 5.005 percent up from 4.972 per cent.
Till the afternoon on Wednesday, the shares of IRCTC inched higher by approximately 2 per cent to trade at Rs 744 levels. In the past week, the share has added approximately 4 per cent.
The shares of the company were listed in October 2019 at Rs 155 a piece on NSE. From there it has scaled up to the current levels logging a multibagger return of 378 per cent in 3 years.
Indian Railway Catering and Tourism Corporation is a wholly-owned subsidiary of the Indian Railways, that provides ticketing, catering, and tourism services for the Indian Railways. The company has a 100% market share in the online railway ticketing business in India.
The Q2 results of the company are awaited. Brokerage Prabhudas Lilladher has come out with its second quarter (July-September 22) earnings estimates for the company.
The brokerage expects IRCTC to report a net sale of Rs Rs. 856.9 crores which will be an increase of 111.6 per cent year-on-year and 0.5 per cent quarter-on-quarter. It also expects the company to report a net profit of Rs. 247.2 crores up 55.9% YoY and 0.7% QoQ
In Q1FY22, the company reported total revenue of Rs 852 crores and a subsequent net profit of Rs 245 crores.
IRCTC has a market capitalization of Rs 59,704 crores and a dividend yield of 0.47% as of October 19th, 2022. The promoter of the company is the President of India who holds a 67.4 per cent stake in the company with zero shares pledged.
Written by Anoushka Roy
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