IRCTC IPO: A robust growth outlook, attractive valuations are key positives

Indian Railway Catering and Tourism Corporation’s (IRCTC’s) initial public offering (IPO) is a good bet for investors. The company, which is under the railway ministry, has a monopoly over e-ticketing, catering in trains and packaged drinking water at railway stations. Reasonable valuation, a robust dividend track record, zero-debt status and a strong outlook for its three core services are the other triggers.
 
IRCTC has had healthy revenue growth of 27.4 per cent in FY19, while the same over FY17-19 averaged 11 per cent. Good growth at the top also reflects on the bottom line, which has grown by 24