IRCTC share price hits new record high, tops Rs 3,000, rallies 100% YTD; should you buy, sell or hold?

IRCTC share price hits new record high, tops Rs 3,000, rallies 100% YTD; should you buy, sell or hold?

Analysts say that IRCTC is forming higher high and higher low chart formation which is bullish in nature

IRCTC share price surged 6 per cent to a new record high of Rs 3,041.20 on BSE in intraday deals. So far in September, Indian Railway Catering and Tourism Corporation shares have rallied 10.38 per cent, as compared to a 1.3 per cent rise in the BSE Sensex. Analysts say that IRCTC is forming higher high and higher low chart formation which is bullish in nature. With the reopening of the economy post COVID-19 the public transport set to increase to higher levels. “As the stock has come out of a small consolidation zone of 2500-2750, it is now ready for higher levels till 3150-3250 in the near future,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.

Wagh also added that a strong poll flag pattern is in progress. “One should hold it with stop loss below 2500. Those who want to buy should wait till 2800 for effective entry,” he said. In traded volume terms, 1.65 lakh shares have exchanged hands on BSE, while a total of 41.81 lakh units have traded on NSE, so far in the day. Earlier this month, Indian Railways announced the Shri Ramayana Yatra, a tour by Deluxe AC Tourists trains, which will begin after Diwali in November.

In the current expiry (i.e. September 2021), the IRCTC stock has reported a 14.5 per cent rally so far. Analysts say that a spike in volume and rise in open interest signal that major participants are in favour of bulls. “Its 20-week and 50-week EMAs are sloping upwards. The weekly RSI is positively poised. As per the current set-up, we believe the stock will keep exploring uncharted territory and move towards Rs 3,180,” Jatin Gohil, Technical Analyst, Reliance Securities, told Financial Express Online. This suggests a further 4.5 per cent jump from the current levels. Gohil added saying that the risk reward is not favourable for fresh long position at this juncture. “Hence, fresh long positions can be initiated on dips towards Rs 2,700-2,550,” he said.

Image: Reliance Research

In the last five days, IRCTC share price has surged 10.67 per cent, and 21.18 per cent in one month. While it has more-than-doubled so far in the year, rising a whopping 108.62 per cent. In comparison, BSE Sensex has added 22 per cent on a year-to-date basis.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

IRCTC shares give breakout above ₹ 3000. Should you buy at current levels?

IRCTC shares continued to rally for the second straight session on Monday with the Indian Railways' PSU hitting a new lifetime high of ₹3,040 per share in early morning deals. The Indian Railway Catering and Tourism Corporation (IRCTC) shares today surged more than 5.5 per cent hitting new lifetime high. As per the market experts, IRCTC shares may continue to climb new highs as it has given fresh breakout above ₹3000 today. They said that it may go up to ₹5,000 per stock levels in next 18 to 24 months.

Speaking on the immediate IRCTC share price target; Sumeet Bagadia, Executive Director at Choice Broking said, “The stock has given fresh breakout today at ₹3,000 levels. One can buy this Indian Railways' PSU counter for immediate to short-term target of ₹3200 to ₹3400. However, one must maintain stop loss at ₹2800 while taking this position in IRCTC shares.”

Speaking on the reason for such rise in IRCTC shares; Ravi Singhal, Vice Chairman at GCL Securities said, “IRCTC share price rally is mainly because of the company’s aggressive focus on its hospitality business. Market has a sense that IRCTC is trying to emerge as A to Z solution provider in hospitality business as it has been joining hands with aviation and surface transport service providers and at the same time it is tying up with hotels. It is also aggressively focusing on its food-supply business by inking deals with local food-chain players. So, IRCTC is no more going to remain just an e-ticket platform.”

Santosh Meena, Head of Research at Swastika Investmart Ltd said, “IRCTC share price is in strong bullish momentum where it has gained more than 100 per cent in 2021 and crossed the psychological level of ₹3000. The correction due to Covid-19 was a great opportunity for portfolio investors to latch onto it as everyone wanted to buy it before Covid-19 at any price because of its monopoly and future growth outlook. The reopening theme is getting momentum whereas it has a tailwind of stock split news. Railways' asset monetization plan is another trigger for its re-rating. The bullish momentum may continue while ₹3070 to ₹3100 is an immediate resistance zone; above this, it is likely to head towards the ₹3300 level. If it witnesses any profit booking from the ₹3070 ₹3100 resistance zone then ₹2775 to ₹2700 will be a good buying zone.”

On his view on IRCTC share price target, Ravi Singhal of GCL Securities said, “IRCTC is a portfolio stock and one should buy this counter for next 18-24 months target of ₹5,000 per equity levels.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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IRCTC shares cross Rs 3,000 mark, experts see another 10% upside in near term

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Indian Railway Catering and Tourism Corporation (IRCTC) shares rallied 6 percent intraday to cross the Rs 3,000 mark and hit a record high of Rs 3,041.20 on September 6.

In the last one year, the stock has registered a 115 percent return, outperforming the benchmark indices as well as broader markets. It was quoting at Rs 3,000.80, up 4.58 percent, at the time of writing this copy.

The rally can be attributed to the reopening of the economy, its monopoly in the internet ticketing & catering business, and railways' asset monetisation plan.

“IRCTC is in strong bullish momentum where it has gained more than 100 percent in 2021 and crossed the psychological level of Rs 3,000. The correction due to Covid-19 was a great opportunity for portfolio investors to latch onto it as everyone wanted to buy it before Covid-19 at any price because of its monopoly and future growth outlook,” said Santosh Meena, Head of Research at Swastika Investmart.

“The reopening theme is getting momentum whereas it has a tailwind of stock split news. Railways' asset monetization plan is another trigger for its rerating,” he added.

Experts largely expect the bullish momentum to help the stock march towards Rs 3,300 levels in the near term.

“The bullish momentum may continue while Rs 3,070-3,100 is an immediate resistance zone; above this, it is likely to head towards the Rs 3,300 level,” Santosh Meena said.

According to him, if it witnesses any profit booking from the Rs 3,070-3,100 resistance zone then Rs 2,775-2,700 will be a good buying zone.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research also feels IRCTC has given a breakout of a rising channel confirming more biasness towards higher levels. “We can expect IRCTC to trade till the levels of Rs 3,350 in near future.”

IRCTC had delivered a strong set of numbers despite challenges from the second wave impact during the quarter ending June 2021, as catering segment revenues improved, rail-neer segment turned EBIT positive after 4 quarters and internet ticketing segment continued to deliver strong margins.

“Revenues were higher than estimate due to higher revenue from catering segment, but EBITDA (earnings before interest, tax, depreciation and amortisation) and PAT were in-line. Margins declined sequentially due to lower volumes. The company reported an 85 percent YoY increase in revenues to Rs 243.4 crore, driven by a pick-up in revenues across all business segments, but largely driven by the internet ticketing segment (now over 60 percent of revenues),” said IDBI Capital in its note on August 14, 2021.

The company is already seeing increase volume growth from ticketing segment in the last 2 months, said the brokerage which remained confident of FY22 EBITDA and EPS surpassing FY20 levels. It expects catering business to start contributing more meaningfully. IDBI Capital had maintained buy call on the stock, after June quarter earnings, with a target of Rs 3,104.

The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.