Indian Railway Catering and Tourism Corp. Ltd shares (IRCTC) hit record high in intra-day trade on Wednesday, i.e. 13 November, ahead of the earnings announcement for the second quarter ended September (Q2) later in the day.
The IRCTC stock hit a peak of Rs 980.90 during the day, but closed the session at Rs 923.50, down 1% from its previous close. The stock, which got listed on bourses on 14 October, has risen nearly three times from its offer price of Rs 320 within one month. On the listing day itself, the stock had rallied over 127% to close at Rs 727.75.
The stock has continued to remain on the buyers’ radar as experts still remain bullish on the stock even after an extended rally.
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.
“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,” Gaurav Garg, head of research at CapitalVia Global Research – Investment Advisor had earlier 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 had added.
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.
Meanwhile, a media report on Monday said that IRCTC’s Tejas Express, the Indian Railways’ first privately run train, has made a profit of around Rs 70 lakh till October this year, while earning a revenue of nearly Rs 3.70 crore through sale of tickets.
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Source: News18