Should You Invest in IRCTC Ltd. for Long Term? Stock Analysis by Finology

One of India's strongest monopolies, IRCTC is the all-in-one travel companion for seamlessly integrating train bookings with catering, tourism & hospitality services.

Finology Research Desk has analysed the company this week, providing a clear verdict on whether Indian Railway Catering & Tourism Corporation Ltd. is a good long-term stock or not. Find out in this article.

What makes the Travel & Tourism industry special?

The Travel and Tourism industry has been experiencing rapid recovery in India after the outbreak of COVID-19. India is being ranked at the 39th position in the Travel and Tourism Development Index (TTDI) by World Economic Forum in 2024. This industry was valued at USD 19.44 billion in 2024 and is expected to grow at a CAGR of 8.27%, reaching USD 31.21 billion by 2030. Travel and tourism are two of the largest industries in India, contributing  9.1%  to the country’s GDP as of 2023. This increase is driven by rising disposable income, infrastructural improvement of railways and airports, and government initiatives to promote travel and tourism in India. 

The Indian railway system stands as the lifeblood and foundation of the Indian economy, spanning thousands of kilometres and covering the entire nation. It ranks as the 4th largest railway system in the world after the US, China, and Russia, contributing about 1.5% of the country’s GDP. The railway board holds the monopoly over provision of railway services in India. Due to its low cost, railways continue to be the most popular means of transportation for long-distance travel in India. With total number of passengers reaching 715 Cr. in FY25 from 673 crore in FY24, marking a 6% increase from the previous year.