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
Delta in non-convenience income, and
Potential in e-catering business.
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