IRCTC: IRCTC Stock Drops 5% on Weak Q4 Results; ‘Hold’ Rating Retained
The IRCTC reported 2% net profit up as Rs.284 cr and Revenue up by 20% to Rs.1154.8Cr. EBITA rose by 3.4% YoY to Rs.402.96 cr, EBITA Margin decreased to 34.89% from 36.8% in the last quarter.Margin decreased is the real cause for decline in the profit and Revenues in this Quarter Q42024.
IRCTC is moving in Ascending trend line and market has rebounded from the higher low area of the pattern
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) dropped nearly 5 percent on May 29 after the company’s fourth-quarter results fell short of market expectations.
For Q4 FY24, IRCTC reported a net profit increase of 2 percent year-on-year to Rs 284 crore, driven by higher ticket sales. Revenue grew 20 percent YoY to Rs 1,154.8 crore. However, the company’s earnings before interest, tax, depreciation, and amortization (EBIDTA) rose only 3.4 percent YoY to Rs 402.96 crore, with the EBIDTA margin decreasing to 34.89 percent from 36.8 percent in the same period last year. The decline in margin was attributed to a higher contribution from low-margin segments like catering and tourism compared to internet ticketing.
IRCTC is the sole entity authorized by the Indian government to provide online railway tickets, catering services on trains, and packaged drinking water at railway stations and trains in India. The company’s net profit and EBITDA missed estimates due to higher other expenses. Over the years, IRCTC has expanded its services to include tourism and hospitality offerings, such as luxury train tours, hotel bookings, and holiday packages.
The company’s board declared a final dividend of Rs 4 per share for the financial year 2023-24, amounting to Rs 256 crore. This is in addition to the interim dividend of Rs 2.50 per share declared in November 2023. As of March 31, 2024, the Indian government owns 62.4 percent of the company, while foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) own 7.1 percent and 10.5 percent, respectively. Retail shareholders hold a 20 percent stake.
Despite the recent drop, IRCTC stock has rallied around 16 percent this year, outperforming the benchmark Nifty 50, which has gained nearly 5 percent in the same period.
ADANI ENTERPRISES: Adani Group Boosts Stakes in Adani Enterprises, Adani Green
The Adani Group is increased its stake in Adani Enterprises and Adani Green energy valued at Rs.2162 cr and Rs.2507 cr respectively. Now the Board has approved to increase Rs.16600 cr for Adani enterprises and Rs.12500 cr for Adani Green energy from QIP process. Already Adani group collected $6 Billion from Foreign investors from 2023 even allegations from Hindenburg research in 2023.
ADANI ENTERPRISES Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel
In May, the Adani Group, under the leadership of Gautam Adani, increased its stakes in both Adani Enterprises and Adani Green Energy ahead of planned fundraising activities.
According to data from the National Stock Exchange (NSE), promoter entities acquired 72.70 lakh shares of Adani Enterprises, valued at Rs 2,162 crore, and 1.39 crore shares of Adani Green Energy, valued at Rs 2,507 crore, through multiple transactions between May 10 and May 23.
Emerging Market Investment DMCC of the Adani Group purchased Adani Enterprises shares worth Rs 764 crore, while Kempas Trade and Investment acquired shares worth Rs 1,398 crore. Similarly, Ardour Investment Holding bought Adani Green Energy shares worth Rs 1,599 crore, and Adani Tradelines acquired shares worth Rs 908 crore. As of March 31, promoters held 72.61 percent of Adani Enterprises and 56.37 percent of Adani Green.
On May 28, Adani Enterprises announced plans to raise Rs 16,600 crore, while Adani Energy Solutions stated that its board had approved fundraising of up to Rs 12,500 crore through qualified institutional placement (QIP) and other methods.
The Adani Group aims to attract international investors to support India’s infrastructure growth and diversify its shareholder base. Despite previous setbacks, including criticisms of a narrow investor base, Adani Group companies have recently garnered significant investments totaling nearly $6 billion from notable entities such as Rajiv Jain’s GQG Partners LLC, Qatar Investment Authority, and Total Energies since last year.
Board approvals for fundraising resolutions demonstrate preparedness to secure favorable financing terms promptly. Five out of ten Adani Group stocks have surpassed pre-Hindenburg report levels, indicating investor confidence. Gautam Adani’s net worth has surged by $25 billion this year, exceeding $109 billion, according to Bloomberg data.
The Aster DMhealth care reported net loss of Rs.24 Cr in the Q4FY24 from Rs.170.8 cr in the past quarter. Company revenue shows increase of 20.65% rising to Rs.973.6 from Rs.806.9 cr in the pastquarter.EBITA increased by 100 basis points to 16.4% in Q4. The Company aims for 1700 beds and nearly 6500 Beds by FY27 in Brownfield and Greenfield projects.
ASTERDM has broken Ascending trend line in downside
Shares of Aster DM Healthcare experienced a sharp decline of 7.5 percent in opening trade on May 29 following the company’s report of a net loss for the January-March quarter of FY24.
Aster DM Healthcare posted a net loss of Rs 24 crore in Q4FY24, a significant downturn from the net profit of Rs 170.8 crore recorded in the same period of the previous fiscal year. The bottomline was negatively impacted by higher tax expenses and contributions from discontinued operations.
Despite the loss, the company’s revenue saw a notable increase of 20.65 percent, rising to Rs 973.6 crore from Rs 806.9 crore in the corresponding period of the preceding fiscal year. Moreover, the company’s operational performance improved, attributed to the enhancement of ARPOBs (Average Revenue Per Occupied Bed). The EBITDA margin expanded by 100 basis points to 16.4 percent in Q4.
During the quarter, Aster DM Healthcare completed the segregation of its India and GCC (Gulf Cooperation Council) businesses. Following this segregation, Aster DM Healthcare India is now focusing on geographical growth, planning greenfield and brownfield expansions over the next three years.
Looking ahead, the company aims to add around 1,700 beds to its capacity, reaching over 6,500 beds by FY27 through a combination of brownfield and Greenfield projects. This expansion will see Aster Medcity and Aster CMI hospitals growing to over 950 beds and 850 beds, respectively.
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