Subscribe to IRCTC: Hem Securities

Working closely with the Central Government, company is an authorized entity to operate special election trains for movement of paramilitary forces across India for general and assembly elections. Company also operate state-special trains, and "pilgrim trains" for various state governments where the beneficiaries are selected by the respective state primarily senior citizens. This collaborative partnership with the Central and State Government provides company with additional revenues.

Valuation and Outlook

Company is bringing the issue at p/e multiple of approx. 18-19 at price band of 315-320/share( Discount of Rs 10/share to retail investor & employee). Company being the sole entity authorized by Indian Railways to offer railway tickets , to manufacture and distribute packaged drinking water & providing catering services at all railway stations and trains has generated healthy ROE since FY’17. Company with its profitable and debt free status along with strong dividend payout is looking attractive destination to deploy the funds in .Hence we recommend “Subscribe” on issue for listing gain as well as long term investment . Currently, company operate in four business segments, namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism

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