Goal: ₹870
CMP: ₹759.55
Indian Railway Catering and Tourism Company (IRCTC) reported robust development (15 per cent/10 per cent, q-o-q/y-o-y) primarily led by catering and tourism (main uptick in luxurious practice phase). The administration expects this momentum to proceed forward on the again of accelerating partnership with meals aggregators and enhance in variety of trains resembling sleeper Vande Bharat and Bharat Gaurav trains (luxurious which has excessive share of income for the phase).
In the meantime, Web ticketing is predicted to stabilise on the similar ranges (margin at 84 per cent) on account of saturation when it comes to market share. The administration is taking required actions by bettering the non-convenience income to enhance segmental margin which might, in flip, mirror in sustaining the general margins. The corporate is constructing new infrastructure for base kitchen to enhance the market share and growing partnerships with meals aggregators. IRCTC is planning to increase with three new crops for rail neer in FY26 which might enhance the capability.
With predominant market share and the administration’s efforts in bettering the top-line we stay optimistic. Resulting from sharp correction within the inventory costs in latest time, we improve our score to Purchase from Maintain with a TP of ₹870 (41.4x FY27E EPS).
