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IRCTC continues to be on buyers' radar for 3rd consecutive session; jumps 11%

The market capitalisation increased from Rs 5,000 crore to nearly Rs 14,000 crore in week's time, which is quite surprising as well as obvious given the potential the company has.

October 22, 2019 / 01:23 PM IST
The Railways has incurred loss of over Rs 16 crore per day due to the farmer agitation in Punjab

The Railways has incurred loss of over Rs 16 crore per day due to the farmer agitation in Punjab

 
 
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Shares of Indian Railway Catering & Tourism Corporation (IRCTC) remained on the buyers' radar for third consecutive session on October 22, rising 11 percent intraday.

The consistent buying interest has lifted the stock by 170 percent since last week, from issue price of Rs 320.

The market capitalisation increased from Rs 5,000 crore to nearly Rs 14,000 crore in week's time.

IRCTC is the only entity authorised by the Indian Railways to provide online railway tickets, catering services to railways and packaged drinking water at railway stations and in trains.

The company has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.

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Experts remain bullish on the stock and expect the momentum to continue. In fact, they advise keeping this stock in the portfolio for the long term.

"We can say investors got another stock to add to their portfolio and be bullish on this stock in long-term and always buy from a correction," Gaurav Garg, Head of Research at CapitalVia Global Research - Investment Advisor told Moneycontrol.

"We can see some FOMO (fear of missing out) effect in the stock case and fundamentally IRCTC is a Warren Buffet’s buy with a moat stock type," he said.

From IRCTC’s future revenue generation strategy by levying a service charge of Rs 15 on tickets booked for non-air-conditioned coaches and Rs 30 for air-conditioned ones gives a clear view of its increasing earnings, he added.

Based on parameters such as strong earnings profile, diversified business segment, healthy return ratios, debt-free status and monopoly business we are strongly bullish on this without any bias, he said.

On the listing day itself on October 14, the stock had rallied 127.4 percent to close at Rs 727.75.
Moneycontrol News
first published: Oct 22, 2019 12:45 pm

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