Home Financial Record IRCTC share price at new record, above Rs 6000, mcap exceeds Rs 1 lakh cr; what fuels the rally?

IRCTC share price at new record, above Rs 6000, mcap exceeds Rs 1 lakh cr; what fuels the rally?

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Last week, IRCTC stock managed to break through its psychological resistance level of Rs 5000 and is now trading comfortably above.

IRCTC’s share price rose 8.3% to a new high of Rs 6,375.45 each on BSE, bringing the total market cap to over Rs 1 lakh crore. Over the past five days, shares of the Indian Railway Catering and Tourism Corporation have climbed 30% and 70% in the past month. The stock has risen nearly 300% in six months and 333% so far this year. Last week, IRCTC stock managed to break through its psychological resistance level of Rs 5000 and is now trading comfortably above. Analysts say the stock has gained momentum as it is one of the main reopening games for investors and it should benefit in the short term as more trains come down.

Since listing, IRCTC shares have risen nearly 900,230%, but relative to the issue price, they have climbed more than 1,892%. Train ticket reservations during the July to September 2021 quarter nearly doubled. This should be reflected in strong quarterly figures, as the IRCTC has almost a monopoly on booking train tickets online, an analyst said. “Investors also appear optimistic about the coming second quarter results as they are expected to post better numbers than previous quarters as the economy returns to normal and travel demand accelerates,” Likhita Chepa, research analyst principal at CapitalVia Global Research, said Financial Express Online.

Currently, IRCTC occupies the 59th position in the overall market capitalization ranking. Chepa added that IRCTC is aggressively focusing on its hospitality business and also paying special attention to its food chain business in train traffic. “As the company enjoys a monopoly and has a strong outlook, the stock can be expected to double in the next 28 to 32 months,” Chepa said.

In terms of volume traded, 4 lakh stocks traded hand on BSE, while a total of 77.05 lakh stocks have been traded so far on NSE. On July 30, 2021, IRCTC announced a stock split plan. The following month, the IRCTC board approved a stock split at a 1: 5 ratio. The IRCTC has set 29 October 2021 as the registration date to determine the name of the shareholders entitled to the subdivision / division of participating shares of Rs 10 each into five participating shares with a par value of Rs 2 each. . The action will become the ex-date for the stock split on October 28, 2021. Analysts say a relentless rise in major indices along with positive sentiment and an almost complete opening of the travel sector has led to a euphoric rally of the IRCTC. “At current levels, the IRCTC is extremely overvalued and technically overbought. Buyers must maintain a stop-loss of 5850 and can hold their positions, ”Pavitraa Shetty, co-founder and trainer of Tips2Trades, told Financial Express Online.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online assumes no responsibility for their investment advice. Investments in the capital markets are subject to rules and regulations Please consult your investment advisor before investing.)

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