IRCTC share price today: Prabhudas Lilladher highlights that the company saw strong growth in online Rail Bookings. Non-Suburban PRS traffic was 20.9 mn vs 19.1 mn in 10-20th Feb 2020 period, 9.5% growth YoY. Ex-1st 10 days of Jan, passenger traffic has registered growth in every subsequent 10 day bucket. IRCTC share price today is Rs 1871, up Rs 112 or 6.5%. Prabhudas Lilladher says that if the current trend continues then the total number of tickets booked online in Q4 FY21 can well exceed the figure of 68.8 mn registered in Q4 FY20. IRCTC Share price today is Rs 2014, up Rs 128 or 6.8%.
 
IRCTC is the offered a monopolistic opportunity in online rail ticketing, sale of Packaged Drinking Water (PDW) and catering services (in Train as well as 600 stations) for Indian Railways. Contrary to most other monopolistic plays, IRCTC assures low pricing and high quality experience for its customer base. The ticketing business operational prowess has been proven as it has achieved massive 73% penetration in FY20 on internet booking (during Pandemic 90%+). Its PDW brand (Rail-Neer) sells water cheaper by 33% compared to other branded alternatives. Catering business exclusivity ensures quality, pricing and availability to travelers.

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The multiple levers for IRCTC growth specifically conversion of unreserved coaches into 2S would be more than sufficient to cover up for growth loss due to COVID pandemic. Factoring in the opportunities across business segments and the huge scale/multitude opportunities that IR offers along-with gradual expansion in non-IR revenue stream (E-catering, air/bus ticketing, hotel booking); we expect a revenue/earnings CAGR of 16%/23% over FY20-25E, and initiate coverage on IRCTC with a target price of Rs 2650 valued at 40x PER on FY23E of Rs 66).