High ROE & high ROCE multibagger stock: This railway catering and tourism signs MoU with Central Reserve Police Forces – know more here!

The stock has an ROE of 45.5 per cent and a ROCE of 59.2 per cent and generated multibagger returns of over 140 per cent in just 3 years.

In a major development for CAPF personnel travelling for law-and-order duties, the Indian Railway Catering and Tourism Corporation (IRCTC) signed a Memorandum of Understanding (MoU) with the Central Reserve Police Force (CRPF) on March 1, 2024. This agreement will ensure that all CAPF forces, including CRPF, ITBP, BSF, CISF, and SSB, receive on-board catering services during their train journeys for various assignments like bye-elections. IRCTC will be responsible for providing and serving breakfast, lunch, dinner, and packaged drinking water with each meal. The meals will be delivered according to train schedules, and emergency meals will also be available to address unforeseen situations arising during travel for these CAPF duties.

Earlier, IRCTC expanded its e-catering options by partnering with both Swiggy and Zomato. In a recent development, IRCTC announced a collaboration with Bundl Technologies Pvt Ltd (Swiggy Foods) to offer pre-ordered meal delivery through the IRCTC e-catering portal as a trial run (Proof of Concept) at four stations: Bengaluru, Bhubaneswar, Vijayawada, and Visakhapatnam. This initiative follows a similar pilot program launched in October 2023 with Zomato, allowing passengers at five other stations (New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi) to pre-order meals through IRCTC and receive them via Zomato delivery. Both partnerships aim to enhance passenger convenience by providing a wider variety of food choices and a streamlined ordering and delivery process.

The Indian Railway Catering & Tourism Corporation (IRCTC), established in 1999, is a one-stop shop for travel and tourism in India. They handle online railway ticketing, catering services (including pantry cars, food plazas, and e-catering), packaged drinking water, various hospitality services (like lounges, retiring rooms, and hotels), and domestic and international tourism packages (including luxury trains, air ticketing, and city tours). With 8+ crore users, 15 Rail Neer plants, and a vast network of services, IRCTC aims to provide a comprehensive and convenient travel experience for everyone

Talking about the financials, IRCTC has a market cap of over Rs75,000 crore. The company reported positive numbers in its Quarterly Results and annual results. The net sales increased by 22 per cent to Rs 1,118 crore and net profit increased by 17 per cent to Rs 300 crore in Q3FY24 compared to Q3FY23.

Today, shares of IRCTC surged 0.53 per cent to Rs 938.20 per share with an intraday high of Rs 945.80 and an intraday low of Rs 924.15. The stock’s 52-week high is Rs 1,049.75 and its 52-week low is Rs 557.15. The stock has an ROE of 45.5 per cent and a ROCE of 59.2 per cent and generated multibagger returns of over 140 per cent in just 3 years. Investors should keep an eye on this Mini-Ratna company.

Disclaimer: The article is for informational purposes only and not investment advice.