The shares of Indian Railway Catering and Tourism Corporation (IRCTC) rose over 13% to ₹888 on BSE, to hit a fresh record of 52-week high on Monday’s trading session. The stock closed at ₹879 apiece on December 18, against previous close at ₹780.90 last week.
A substantial turnover of ₹271.51 crore was recorded on the BSE as 32.29 lakh shares of the company were traded.
The stock saw an upswing after it recorded the second highest turnover. The market capitalisation of IRCTC also rose to ₹70,548 crore.
From a technical standpoint, IRCTC exhibits a relative strength index (RSI) of 71.4, indicating that it is currently situated in the overbought region. The stock’s one-year beta of 0.2 suggests a low level of volatility. Additionally, this large-cap stock is surpassing its 5-day, 10-day, 100-day, 150-day, and 200-day moving averages in its current trading.
IRCTC announced a robust 30.4% surge in net profit, totaling ₹294.7 crore as opposed to the previous year’s ₹226 crore during the corresponding period. Furthermore, the revenue from operations exhibited a noteworthy increase of 23.5%, reaching ₹995.3 crore compared to ₹805.8 crore in the same period last year.
In terms of operational performance, the company recorded an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₹366.5 crore in the September quarter. This marked a robust growth of 20.2%, surpassing the ₹304.9 crore reported in the corresponding period last year.
Stock market analysts suggest that IRCTC shares present a favorable opportunity for long-term investors. The company’s diversification in business operations and the introduction of numerous new trains are anticipated to yield benefits for both the company and its business model in the long run. Furthermore, despite a significant rally in Indian Railway shares, IRCTC’s stock has consistently underperformed.
Giving ‘portfolio stock’ tag to IRCTC shares, Anirudh Garg, Founder & Fund Manager at Invasset said, “IRCTC shares present a compelling opportunity for long-term investors, given the company’s dominant position in the online ticket booking sector. As a public sector undertaking (PSU), IRCTC is strategically diversifying its operations into hospitality, online catering, and various other businesses.”
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Published: 18 Dec 2023, 04:19 PM IST
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