This Miniratna (Category-1) Stock Gave 53% Returns In 1 Year, Maintains Healthy Dividend Payout

The dividend is important, which is why it is important to highlight that companies that are nearly debt-free and have a track record of paying dividends should be considered. Buying high-quality stocks is a good approach since dividends are a great method to earn passive income. Considering a healthy dividend payout and nearly debt-free, IRCTC Ltd, a Category-1 Miniratna stock you can consider for investmenta and extra income as a dividend. Also, the stock has performed well in the last 1 year, giving 53% returns.

Dividend History

IRCTC has had a good track of dividends since its launch. For the past 2 years, the company has declared two Interim dividends and two final dividends. The Dividends declared by the company are as follows:

Announcement Date	Dividend Type	Dividend (%)	Dividend (Rs)
08-02-2022	Interim	100	2
29-06-2021	Final	50	5
10-07-2020	Final	25	2.5
12-02-2020	Interim	100	10

As mentioned, the company has a good track record of dividend payments over the years constantly and without any delay. For the year ending March 2022, the company has declared an equity dividend of 175.00% i.e Rs 3.5 per share. Considering the current market price of Rs 644.65/share, it will result in a dividend yield of 0.54%. The estimated dividend yield looks promising and attractive considering the CMP of IRCTC. The potential investors of IRCTC can expect a good profit as the company maintains a healthy dividend payout.

 

IRCTC Financials

The company has been maintaining a healthy ROCE of 43.02% over the past 3 years. While the Company delivered a return on equity (ROE) of 35.22% in the year ending 31 March 2022 outperforming its 5-year average of 28.53%. It has a 77.67 P/E ratio, which is below its sector P/E ratio of 78.52. Over the years, the company comes out as almost debt-free. The current market cap of Rs 51,552 Crore, as of writing the article.

The company is expected to give good quarter. Also, the company has delivered good profit growth of 23.80% CAGR over the last 5 years. The company has a good ROE track record with 31.52% ROW in 3 Years. 4QFY22, Ending March 222, the company delivered 2.38% growth in Q4 result, which is below its December 2021 PAT growth of 31.68%. However, the company reported a Rs 716 crore standalone total income, 28.80%. up from the previous quarter.

Stock Outlook and Performance

IRCTC stock on Friday closed at a Current Market Price (CMP) of Rs 644.65/share. The 52-week low of the stock is 395.73/share, recorded on 18 June 2021, while the 52-week high is Rs 1,279.26/share, recorded on 19 October 2021. The stock is currently trading above Rs 248.92/share from its 52-week low levels and Rs 634.61/share below its 52-week high levels.
Over the last 3 months, it has given negative returns, moved down by 14.97%. The negative returns continue till last week's close on Friday. Over the 1 year, the stock has given positive returns, share price moved up 53.03%.

About - IRCTC Ltd

IRCTC Ltd (Indian Railway Catering & Tourism Corporation Ltd.) is a "Mini Ratna (Category-I)" Central Public Sector Enterprise under the Ministry of Railways, Government of India. The company was incorporated in the year 1999 on 27th September, is a Mid Cap company operating in Tourism & Hospitality sector. IRCTC Ltd's key Products/Revenue Segments include Packaged Drinking Water, Other Services (Tour Income), Beverages & Food, Other Services and Scrap for the year ending 31-Mar-2021.

Disclaimer

The stock has been sourced from NSE. Greynium Information Technologies and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.