Indian Railway Catering & Tourism Corporation Ltd. share price target

While on YoY basis the impact of Covid-19 pandemic continued to weigh on IRCTC's business segments, it reported a meaningful QoQ improvement in revenue/profitability in Q3FY21. In Q3FY21, revenue grew by a strong 1.5x QoQ to Rs2,244 mn. EBITDA saw an even better improvement to Rs946 mn vs. a loss of Rs56 mn in Q2. Even EPS saw a strong growth to Rs4.9 vs. Rs0.3 QoQ. We factor delayed recovery mainly in catering and tourism segment and cut FY21/22 EPS by 33%/4.2%. However, we remain confident of FY22 EBITDA and EPS surpassing FY20 levels. Our FY23, EPS forecast remains unchanged. We maintain BUY with TP of...

We cut our FY21E EPS estimates by 50% given the uncertainty in timeline regarding complete resumption of rail services. However, our FY22E/FY23E estimates are broadly intact as 1) resumption of Tejas Express from 17 th Oct and 2) increase in convenience revenue to ~25% of the pre-COVID levels in...

We initiate coverage on Indian Railway Catering and Tourism Corporation (IRCTC) with TP of Rs1,800 based on PER of 35x FY23E. We believe that IRCTC is a one-of-its-kind company. In its top-2 segments internet ticketing and catering services (combined ~89% of FY20 EBIT) it is the sole service provider. Internet ticketing as digital platform business has seen 302 mn bookings in FY20 with ~73% share in total railway ticket booked in India. In its packaged drinking water business it's pricing provides a competitive edge. While Covid-19 pandemic will impact FY21 performance, we expect strong pick-up in FY22/23E. We forecast revenue/EBIT/EPS CAGR of 9.2%/14.4%/15.9%...

IRCTC's performance was marred by COVID-19 during 4QFY20 (impact was evident from the month of Jan itself), with revenue/EBITDA miss of 4%/8% respectively. Since convenience fee on e-ticketing was absent in the base quarter (levied from 01st Sep 2019), optically growth appears to be higher. However, on a QoQ basis revenue/EBITDA declined 18%/24% respectively....

back once COVID fear resides as structural levers remain intact. The stock currently trades at 13.6x FY22 EPS and looks attractive from long term. Retain BUY. However, we would advise staggered buying and do not rule out near term weakness given the constantly evolving situation over lockdown. Further, risk of reduction/abolishment in service charge has magnified as COVID is a black swan event and government can take a socialist approach to deal with the current situation. The impact on IRCTC's earnings assuming 1-month benchmark (complete...

Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a wholly-owned subsidiary of Indian Railways, Government of India. It is a Mini Ratna (Category-I Central Public Sector Enterprise), incorporated in 1999 as an extended arm of the Indian Railways with the objective to upgrade, modernize, professionalize and manage the catering and hospitality services at stations, on trains and other locations, online ticket booking services, packaged drinking water and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity...

A good bet on India's growing tourism & travel market IRCTC is the only entity authorized by the Indian Railways to provide services like catering, travel & tourism, online ticket booking, and packaged drinking water. The company fully enjoys virtual monopoly offering major tourism related services under one roof. The company was conferred the status of Mini-ratna (Category -1 Public Sector Enterprise) by the Govt. of India, on May 01, 2008....

About the company Incorporated in 1999, state-owned Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a wholly-owned subsidiary of Indian Railways. IRCTC handles tourism, catering, online ticket booking services and provides packaged drinking water in trains and at railway stations in the country. The company was conferred as a Mini-Ratna or Category-I Public Sector Enterprise by the Indian Government in 2008. In the last three months ended on 30th June, nearly 15 to 18 million transactions were placed per month through the IRCTC website. IRCTC also provides non-railway services including budget hotels, e-catering and executive lounges to create a one-stop solution for...

As a Central Public Sector Enterprise wholly owned by the Government of India and under the...

travelling by Indian Railways (IRs) 2) strong business visibility amid reintroduction of service charge (Rs15 per ticket for non-AC and Rs30 per ticket for AC from 01 Sep 2019) for online ticket booking and plans to double the number of Rail Neer plants to 20 by FY21E 3) debt free & cash rich BS (Rs11.4bn of cash as of FY19; ~23% of post money market cap) with healthy...