While we continue to like the travel and tourism sector, IRCTC’s earnings trajectory beyond FY23 is unexciting. Hence, investors can board this train only if there is a meaningful correction in the stock price.
November 17, 2022 / 09:46 AM IST
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Highlights Modest show in Q2 on seasonality Internet ticketing stable, continues to be the crown jewel Other segments show sequential decline FY23 an overall year of revival post pandemic Long-term earnings growth trajectory modest Buy only post a deep correction IRCTC (CMP: Rs 728, Market Cap: Rs 58,252 crore) had a modest second quarter that saw stable internet ticketing revenues, despite the falling share of 2S (conversion of unreserved general category to a seating class 2S and these tickets being sold by the IRCTC). The quarterly…