LIC Bought 1,61,56,976 Shares, Increases Stake in This PSU Railway Monopoly Company!
The company’s shares have delivered an impressive multibagger return of over 50 per cent in the past year.
Life Insurance Corporation of India Ltd has increased its stake in one of the railway companies, which holds a monopoly in the ticketing business in India.
Incorporated in 1999, Indian Railway Catering and Tourism Corporation Ltd is the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and on trains in India.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
According to the company’s press release, LIC has increased its shareholding in the equity shares of Indian Railway Catering and Tourism Corporation Ltd from 5,82,22,948 shares to 7,43,79,924 shares, that is from 7.278 per cent to 9.298 per cent of the paid-up capital of the Company. There is a net increase of 2.020 per cent in holding during the period from 16.12.2022 to 11.09.2024. As of 12th September 2024, the holding increased from 7.278 per cent to 9.298 per cent through open market purchases at an average cost of Rs 657.614.
Today, the shares of IRCTC closed at around Rs 936.85 per share on the BSE. The company’s current market capitalization stands at Rs 74,948 crore. Additionally, the shares have delivered an impressive return of over 35 per cent in the past year.
As per the Quarterly Results, in the Q1 FY25, IRCTC recorded a revenue of Rs 1120 crore compared to Rs 1002 crore representing a growth of 11.81 per cent YoY. The operating profit stood at Rs 375 crore compared to Rs 343 crore. The net profit stood at Rs 308 crore compared to a profit of Rs 232 crore.
According to the shareholding pattern of the company, the promoters hold a significant 62.40 per cent stake. Public investors own 16.06 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 7.78 per cent and Domestic Institutional Investors (DIIs) own 13.74 per cent. DIIs have increased their stake in Q1 FY25.
Check out my recent article here.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.