Goal: ₹870
CMP: ₹759.55
Indian Railway Catering and Tourism Company (IRCTC) reported sturdy development (15 per cent/10 per cent, q-o-q/y-o-y) primarily led by catering and tourism (main uptick in luxurious practice section). The administration expects this momentum to proceed forward on the again of accelerating partnership with meals aggregators and improve in variety of trains corresponding to sleeper Vande Bharat and Bharat Gaurav trains (luxurious which has excessive share of income for the section).
In the meantime, Web ticketing is anticipated 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 enhancing 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 develop with three new vegetation for rail neer in FY26 which might improve the capability.
With predominant market share and the administration’s efforts in enhancing the top-line we stay optimistic. On account of 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).
