IRCTC & ASIAN Paints trading 30% below from their high.
Asian Paints
Asian Paints previous closed at ₹2,769 , continuing its decline since the second trading session of September 2024. The stock had previously reached a high on 16-Sep-2024, but has been on a downward trend since then, stock trading 30% below from its high level.
Decreasing Profit QoQ
However Company has delivered good performance in last five years, Net Profit record as FY2020 / ₹ INR 2728 Cr, FY2021/₹3178 Cr, FY2022/ ₹3053 Cr, FY2023 /₹ 4101 Cr, FY2024/ ₹ 5424 Cr. The net profit doubled from FY2020 to FY2024, The company’s sales figures in the previous quarter came under pressure, showing a QoQ decline.
The drop in EBIT reflects weak market demand, driven by intensified competition and widespread discounts offered by competitors.
Urban demand has been under stress, impacting volumes and exerting pressure on profits, Seasonal factors . like sale not picked up during Diwali season, but demand improved in rural areas.
Forex losses on currency devaluation and the along with subdued performance in Asia impacted overall profitability.
The institutional business specially decorative B2B segment, performed relatively better, but still underperformed.
The factories and builder categories registered some growth, subdued momentum in Govt sector impacted by slower performance.
Entering of new market player and inflation hit the profit margin.
Business Expansion and Outlook for 2025
Company expanding its business strongly PAN india, Company continue to establish more retail outlets across suburbs, urban centers, and emerging towns, currently company has approximately 1.67 lakh retail touchpoints, reflecting a strong presence and focused on further strengthening and expanding this market footprint, Company has introduced Butiful Home Painting Service Company getting goo traction from the customer, Company all brown field expansion completed and
Stronger focus on core strengthening the brand
Focus on growing scaling the Industrial business
Good Monsoon and government focus on infrastructure duo may scale up the demand
Global market condition might improve and expect the improved demand
Company Business
Asian Paints operates in paint , putty and water proofing Auto paints in the market, it has a market share of app 20% ,Company offers many type of paints in the market as per the target customers. While company has global presence also in Middle east .South Africa and Bangladesh too
Product Range:
- Interior Paints
- Wall Paints
- Waterproofing
- Wood paints
- Metal Paints
- Adhesives
- Wall Putty and water proofing etc.
Asian Paints Shareholding Pattern
- Promoter : 52.63, Promoter pledged 7.4 % While the pledged in Jun 7.15%
- FII :15.28 % while in Jun it was 15.27
- DII: 13.16% while in Jun 12.36 %
- People: 19.68 % While in Jun 19.68 %
- Others :0.05 % while in Jun 0.06%
IRCTC
On the weekly chart, IRCTC has been in a sharp decline since May 2024, when it peaked at ₹1,139. As of December 27, 2024, the stock closed at ₹779. Despite this recent downturn, IRCTC had reached its highest point in May 2024, IRCTC has corrected 30% in last six month and on chart its entering under accumulation zone.
RSI Signal
A value below 30 generally indicates that a stock is oversold, potentially signaling a buying opportunity. However, other factors should also be considered alongside the RSI value for a well-informed decision.
IRCTC Financial
The results are significantly stable , there is marginally difference in QoQ results , EBIT is a bit increased marginally 1.2% than the previous 1QFY24 and substantially 44% than the 2QFY23 , shows the good strength in performance.
Company Revenue from its Segment
- IRCTC Catering Business : Sep-2024/ ₹ 104,084 Lac , Sep-2023/ ₹ 90,860 , Revenue increased from previous year
- IRCTC Rail Neer : Sep-2024/ ₹ 20,169Lac , Sep-2023/ ₹ 17,394, Revenue increased from previous year
- IRCTC Internet Ticketing:Sep-2024/ ₹ 70,002Lac , Sep-2023/ ₹ 61,757, Revenue increased from previous year
- IRCTC Tourism : Sep-2024/ ₹ 24,676 Lac , Sep-2023/ ₹ 29,979 Revenue decreased from previous year
Catering , Internet ticketing and Rail Neer are performing good , however the tourism has decreased.
Rail Neer has a production capacity of 17.68 lakh liters per day
The company provides on-board catering services across 1,250+ trains nationwide, serving over 16 lakh meals daily
IRCTC Business
IRCTC, a Mini-Ratna company under the Ministry of Railways, Government of India, serves as the professional hospitality and travel arm of Indian Railways. Incorporated on September 27, 1999, it was established to upgrade, professionalize, and manage catering and hospitality services at railway stations, on trains, International Visit and domestic locations. Additionally, IRCTC promotes domestic and international tourism by developing budget hotels, offering special tour packages, and utilizing global reservation systems. The company also supports rail-bound domestic and inbound tourism.
IRCTC Shareholding Pattern
- Promoter : 62.4%,Same as in Jun 62.4%
- FII :7.54 % while in Jun it was 7.78%
- DII: 13.93% while in Jun 12.74 %
- People: 16.13 % While in Jun 16.06 %
- Others :0.02% while in Jun 0.01%
Conclusion
Both IRCTC and Asian Paints are trading below their 52-week lows and fall within the accumulation range based on RSI analysis.
Disclaimer
The information provided on this website is for educational and informational purposes only and should not be considered as financial, investment, or trading advice. All content, including stock analyses, market data, and opinions, is based on publicly available information believed to be accurate at the time of publication
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