With hitting the market capitalization (m-cap) of Rs 1 trillion, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has become the ninth public sector entity to join the privileged club, reported Mint.
IRCTC’s stock has surged more than 300 per cent so far this year, and today it jumped 4 per cent intraday.
With hitting the market capitalization (m-cap) of Rs 1 trillion, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has become the ninth public sector entity to join the privileged club, reported Mint.
IRCTC’s stock has surged more than 300 per cent so far this year, and today it jumped 4 per cent intraday.
According to Moneycontrol, the stock was trading at Rs 6,159.55, up Rs 282.25, or 4.80 percent at 10.26 am. It touched a 52-week high of Rs 6,375.45
Here what analysts are saying:
Gaurav Sharma, AVP-Research at Globe Capital Markets
The stock is still very well placed on charts and short-term traders should utilise dips to take fresh long positions keeping a stop loss below Rs 4,000.
Akhil Rathi, vice president, advisory, at Marwadi Financial Services
IRCTC as a company is a pure monopoly business and the recent surge in stock prices is giving great reward to shareholders on the back of unlocking the economy and upcoming festival season which will boost the company’s revenue.
Internet ticketing saw a jump in Q1 due to the low base last year; we expect this segment will grow substantially higher in the second quarter at about 50% compared with Q1. Also, the number of trains will increase which will increase the revenue for Rail Neer and Catering services.
Ashish Chaturmohta, Director Research, Sanctum Wealth
The rail Neer is a volume game as manufacturing capacity increases coupled with margin expansion as operating leverage plays out. The catering segment will see the benefit of volumes through higher Train Side Vending, e-Catering, Food Plazas, Fast Food Units and Jan Ahaars and benefit of pricing as revised prices (in Circular of 2019) are implemented post-covid.