This is the reason the government is asking for a premium on its 12.6% sale of IRCTC shares. Further, changes in regulations could alter its revenue model, which has happened in the past when IRCTC stopped convenience fees post demonetization. This impacted its revenue growth in the fiscal year 2018. IRCTC is solely authorised by the ministry of railways to prepare and distribute drinking water through its Rail Neer brand. Overall, we expect about 20%-plus profit growth for some years," notes Dharmesh Kant, head, research retail, IndiaNivesh Securities Ltd.

Source: Mint September 30, 2019 02:26 UTC