IRCTC share price: Indian Railway Catering and Tourism Corporation or IRCTC share price today breached the psychological ₹5000 levels and climbed new lifetime peak of ₹5,398. IRCTC shares today opened with an upside gap of ₹76 and went on to ascend its new peak, logging intraday gain of near 8.50 per cent. However, stock market experts are still bullish on the Indian Railways’ PSU stock and expected it to hit ₹5800 levels in immediate short-term.
According to stock market experts, IRCTC share price is expected to further rise as train ticket booking during July to September 2021 quarter has almost doubled. This is expected to reflect in strong quarterly numbers as IRCTC has almost monopoly business in online train ticket booking. Apart from this, the company is diversifying into hospitality segment, which is also fueling the IRCTC stock price rally.
Speaking on the immediate reason for rise in IRCTC share price; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “The immediate reason form rise in IRCTC shares is 100 per cent increase in railway ticket bookings in July to September 2021 quarter. As IRCTC has almost monopoly business in online Indian Railways’ ticket booking, this is expected to reflect in strong Q2 results of IRCTC.”
Echoing with Avinash Gorakshkar’s views; Ravi Singhal, Vice Chairman at GCL Securities said, “IRCTC is aggressively focusing on its hospitality business. It is making fresh tie-ups with hotels, tour and travel service providers and local food suppliers. IRCTC is also giving special focus to its food chain business in running trains. Apart from this, IRCTC has made tie-ups with aviation companies as well. So, market has reaslised that in coming times, it is no more going to remain an Indian Railways’ e-ticket booking platform. It will emerge as A to Z hospitality service provider.”
Advising fresh investors to buy at current levels; Sumeet Bagadia, Executive Director at Choice Broking said, “IRCTC shares have strong support below ₹5000 levels. Those who have this stock in their portfolio should continue to hold the counter maintaining trailing stop loss at ₹4950 as it may go up to ₹5500 to ₹5800 in immediate short term. One can take fresh position in the counter at current levels maintain stop loss at ₹4950.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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