INSUBCONTINENT EXCLUSIVE:
at Rs 1,434 on BSE, up 1.98 per cent
With this, the scrip has rallied 342 per cent over its issue price of Rs 320 per share but many analysts believe the scrip is still
reasonably valued.
The scrip got listed on October 14, 2019.
Yogesh Mehta, Founder at Yield Maximiser said that the scrip was undervalued at
But IRCTC is into a monopolistic business in terms of catering and ticket booking
There is no other competition
It has got good prospects, with at least visible 27-28 per cent growth rate
Lilladher which recently initiated coverage on the stock said that valuations on the stock look compelling given a likely sales and PAT CAGR
of 22.5 and 48.7 per cent over FY19-22, and a monopolistic position in ticket booking and catering.
IRCTC is a monopolistic entity
authorised to provide packaged drinking water, catering, and online ticket booking services to passengers travelling by IRs
It has a dominant position in online rail bookings and packaged drinking water with 73 per cent and 45 per cent market share respectively
Being a regulated monopoly acts a strong moat and limits competitive risks.
