Hold Indian Railway Catering and Tourism Corporation; target of Rs 809: Prabhudas Lilladher

hold

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Indian Railway Catering and Tourism Corporation

IRCTC’s operational performance was broadly in-line with our estimate with EBITDA margin of 34.0% (PLe 33.0%). EBIT margin of internet ticketing was at a 7-quarter high of 84.7% presumably led by an improvement in yield (realization per ticket was Rs20) which could be a function of better product mix (higher share of AC or non-UPI tickets). As e-ticketing penetration has reached ~87%, we expect non-convenience pie to drive the revenue growth in internet ticketing division. As for Rail Neer, addition of 3 new plants will provide the growth fillip while catering division has embedded optionality arising from 1) rising e-catering volumes 2) potential in non-railway catering and 3) launch of Vande Bharat trains.

Outlook

We expect sales/PAT CAGR 9%/8% over FY25E-FY27E and retain HOLD on the stock with a TP of Rs809. We have revised our target multiple to 44x (earlier 48x) as we roll-forward our valuation to Sep-26E.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Indian Railway Catering and Tourism - 12022025 - prabhu