IRCTC Q3 Review - Engine Is Back On Track: Prabhudas Lilladher 
Trains running on track (Photo : BloombergQuint)

IRCTC Q3 Review - Engine Is Back On Track: Prabhudas Lilladher 

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Prabhudas Lilladher Report

We increase our FY21E adjusted earning per share of Indian Railway Catering and Tourism Corporation Ltd. by 1.8 times due to -

1. Substantial rise in e-booking penetration (reached approximately 91-92% post Covid-19; up from ~70-75% levels prevailing pre-Covid) and

2. Conversion of certain unreserved coaches to reserved category thereby expanding IRCTC’s ticket booking universe.

While we expected online migration to pick up immediately post-Covid due to social distancing norms, the quantum was surprising.

We expect the company’s premium valuations to sustain given optionality in earnings that can come from

  1. Railway privatization,

  2. Delta in non-convenience income, and

  3. Potential in e-catering business.

Click on the attachment to read the full report:

Prabhudas Lilladher IRCTC Q3FY21 Result Update.pdf

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