The share of IRCTC has remained in the consolidation phase for a long time. Experts say that the bullish momentum can continue with strong results. With the removal of the restrictions of COVID 19, now the business of the company will gradually become normal.
IRCTC Stock Price: The shares of Indian Railway Catering and Tourism Corporation (IRCTC) have seen a great rally on 9 February. Today, the share of IRCTC rose by 3.5 percent in intraday to reach a price of Rs 868. Earlier on Tuesday, it had closed at Rs 838. The company’s December quarter results have been very strong and the company’s profit has increased by 167 percent. At present, this stock has remained in the consolidation phase for a long time. Experts say that the level of 920 in the upside will be important for the stock in trading. If it manages to stay above it, then it can go up in the short term.
Will the stock rise
Swastika Investmart Ltd. Research Head of Santosh Meena says that IRCTC is stuck in the consolidation range for the last 3 months. During this time the stock has been trading in the range of Rs 780-920. However, after strong results today, momentum has been created in the stock and it may continue. It is expected that the stock will soon break out of the consolidation range and come out of it. The company can benefit from the removal of restrictions of COVID 19. In such a situation, if the stock manages to stay above Rs 920, then it can move further. In the mid term, the level of 980-1000 can be seen in it. The 860 level is an immediate hurdle for the stock. On the downside, the stock has support at Rs 780. If this level is broken, the stock may weaken further.
35% weaker than 1-year high
IRCTC’s stock has weakened by 35 percent from its 1-year high. The stock touched its high of 1279 on 19 October after the split. Whereas on 8 February it closed at Rs 838. However, before the split, the stock had crossed Rs 3000 and it proved to be a return machine for the investors. But due to the closure of activities related to railways due to COVID 19, there has been a big impact on both the business and the stock of the company.
Return machine for investors
IRCTC stock has been a return machine for investors. The company’s stock was listed in the market on 14 October 2019. The issue price of the IPO was Rs 320 and it got listed at Rs 644 with almost double premium. At the same time, before the split, the share price had increased to Rs 3041. In this sense, this stock gave returns of up to 850 percent to the investors.
IRCTC’s profit has more than doubled on a year-on-year basis in the December quarter. During this, the company’s profit has increased from 78.08 crores to 208.8 crores. At the same time, the revenue of the company has also increased from 224.37 crores to 540.21 crores.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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