NSE:IRCTC's ROE % is ranked better than 90.42% of 825
companies
in the Travel & Leisure industry
Industry Median: 5.46
vs NSE:IRCTC: 34.17
Indian Railway Catering And Tourism (NSE:IRCTC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Indian Railway Catering And Tourism ROE % Related Terms
Indian Railway Catering And Tourism ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Travel Services subindustry, Indian Railway Catering And Tourism's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indian Railway Catering And Tourism ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Indian Railway Catering And Tourism's ROE % distribution charts can be found below:
* The bar in red indicates where Indian Railway Catering And Tourism's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Indian Railway Catering And Tourism (NSE:IRCTC) has a ROE % of 30.30% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Indian Railway Catering And Tourism and its competitors. This is 17% below median its historical median of 36.56. Over the past decade, Indian Railway Catering And Tourism's ROE % has ranged from 13.51 to 46.26. According to the industry distribution chart, Indian Railway Catering And Tourism ranks #79 out of 825 companies in the Travel & Leisure industry, placing it in the top 9.6%.
Is Indian Railway Catering And Tourism's ROE % too high?
Indian Railway Catering And Tourism's current ROE % of 30.30% is 17% below median its 10-year median of 36.56. Over the past 10 years, this metric has ranged from a low of 13.51 to a high of 46.26. The Travel & Leisure industry median ROE % is 5.46. Indian Railway Catering And Tourism's value of 30.30% is 454.9% above this industry median. Based on the distribution chart, Indian Railway Catering And Tourism ranks #79 out of 825 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Indian Railway Catering And Tourism has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Catering And Tourism's ROE % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Indian Railway Catering And Tourism ranks #79 out of 825 companies for ROE %. This places Indian Railway Catering And Tourism in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 5.46. Indian Railway Catering And Tourism's value of 30.30% is 454.9% above this benchmark. Historically, Indian Railway Catering And Tourism's own ROE % has ranged from 13.51 to 46.26 over the past decade. While the company's 10-year median is 36.56 vs. the industry median of 5.46, Indian Railway Catering And Tourism has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.46, based on 825 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Catering And Tourism's current ROE % of 30.30% is 454.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Indian Railway Catering And Tourism and its competitors. For the Travel & Leisure industry, the median ROE % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Catering And Tourism's current ROE % is 30.30%, which is 17% below median its own 10-year median of 36.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Catering And Tourism stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism (NSE:IRCTC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹947.14, compared to a current price of ₹514.10 — trading 45.7% below its estimated fair value. The current ROE % is 30.30%, which is 17% below median its 10-year median of 36.56 and 454.9% above the Travel & Leisure industry median of 5.46. Indian Railway Catering And Tourism's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Indian Railway Catering And Tourism (NSE:IRCTC), the current ROE % is 30.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indian Railway Catering And Tourism (NSE:IRCTC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism stock appears to be undervalued.
The current stock price of ₹514.10 is trading 45.7% below its estimated GF Value™ of ₹947.14.
GuruFocus considers Indian Railway Catering And Tourism to be Significantly Undervalued.
Key valuation signals for NSE:IRCTC:
ROE %: 30.30% (17% below median its 10-year median of 36.56)
GF Value™: ₹947.14 vs. price of ₹514.10 (45.7% below fair value)
Industry Position: 454.9% above the Travel & Leisure median (#79 of 825)
No single metric tells the full story. See the NSE:IRCTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Catering And Tourism Business Description
Indian Railway Catering And Tourism Corp Ltd is engaged in catering and hospitality services at stations, on trains, and other locations, and to promote domestic and international tourism through the development of budget hotels, special tour packages, information, and commercial publicity and world-wide reservation systems. The company's segments are Catering, Rail Neer, Internet Ticketing, and Tourism & Train Operation. A vast majority of its revenues are derived from the Catering business.
91GF Score
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