Some shares give so much profit to investors after listing that everyone wants to include this stock in their portfolio. One such share belongs to IRCTC. IRCTC shares have given investors returns of up to 1600% in the last two years.
The IRCTC shares were listed on 18 October 2019. The company’s shares were listed at Rs 320 and closed at Rs 779.15 on the day of listing. Whereas after two years on 18 October 2021, IRCTC shares closed at Rs 5964 with a gain of 9.16%.
Recently IRCTC shares got split. The shares of the company are broken in the ratio of 1:5. After the share split, the shares became cheaper and the liquidity increased. The board of IRCTC has divided a share of Rs 10 face value into 5 shares of face value of Rs 2 each.
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Reason for the rise in IRCTC shares?
An expert said that during the July to September 2021 quarter, the booking of train tickets has almost doubled. Its positive effect will also be seen on IRCTC’s second quarter results as IRCTC has almost a monopoly in online train ticket booking. In such a situation, the share price of IRCTC is expected to increase further. Apart from this, the company is also diversifying into the hospitality segment, which is also fueling the share price rally of IRCTC.
Another expert said, “IRCTC is aggressively focusing on its hospitality business. It is also tying up with hotels, tour and travel service providers and local food suppliers. IRCTC is working on its food chain business in moving trains. Apart from this, IRCTC has also tied up with many airlines recently. In this way, it has assured the market that it will not only serve as an e-ticket booking platform of Indian Railways in future. It is going to be limited. It will emerge as a fully complete hospitality service provider.”
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What should investors do?
Advising new investors to buy at current levels, Sumeet Bagadia, Executive Director, Choice Broking said, “IRCTC shares have strong support below Rs 5,000. Those who have this stock in their portfolio can see stops at Rs 4,950. One should keep investing in it with losses. In the immediate short-term, the stock can go up to Rs 5,500 to Rs 5,800 levels. At current levels, it can be positioned. However, the stop loss should be maintained at 4,950.”
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