Reduce Indian Railway Catering and Tourism Corporation; target of Rs 822: Prabhudas LilladherPrabhudas Lilladher has downgraded Indian Railway Catering and Tourism Corporation (IRCTC) to 'Reduce' with a target price of Rs 822. The downgrade is based on the belief that growth in the internet ticketing division has plateaued and the rising share of low yielding UPI transactions will limit margin expansion. While the...
more... catering division is performing well, it commands lower margins. Despite the strong performance in the catering division, the overall earnings surprise is expected to be limited. The company's sales and PAT are expected to grow at a CAGR of 11% and 12% respectively over FY24-FY26E. The recommendation is based on a multiple of 47.5x over FY26E EPS.
Prabhudas Lilladher ne Indian Railway Catering and Tourism Corporation (IRCTC) ko 'Reduce' rating de diya hai, target price Rs 822 hai. Ye downgrade isliye kiya gaya hai kyunki internet ticketing division mein growth ruk gaya hai aur low yielding UPI transactions ka share badh raha hai, jo margin expansion ko limit...
more... karega. Catering division achcha performance kar raha hai, lekin iska margin kam hai. Catering division ka achcha performance hone ke baavajood, overall earnings surprise limited rahne ki ummeed hai. Company ki sales aur PAT FY24-FY26E mein 11% aur 12% ki CAGR se badhne ki ummeed hai. Recommendation FY26E EPS par 47.5x multiple par aadharit hai.