IRCTC hits record high; increases by 5% in two sessions
Indian Railway Catering and Tourism Corporation (IRCTC) rose 2.63% to Rs 3,868.75, extending gains for the second trading session.
Shares of IRCTC rose 5.04% in two sessions from its recent closing low of Rs 3,683.20 on September 15, 2021.
The stock hit a record high of Rs 4,017 today. It jumped 199.67% from its 52-week low of Rs 1,291 reached on November 4, 2020.
The IRCTC left the F&O sidewalk of the NSE on Friday September 17th. It has been subject to the F&O ban for the past two sessions after its derivative contracts crossed 95% of the market-wide position limit.
In the last month, the title has jumped 45.02% against 6.22% increase for the Sensex. It has climbed 182.33% in the past year, compared to 52.04% for the Sensex.
Technically, the stock’s RSI (Relative Strength Index) stood at 62.81. The RSI fluctuates between zero and 100. Traditionally, the RSI is considered overbought when it is above 70 and oversold when it is below 30.
The stock was trading above its 50-day Simple Moving Average (SMA) placed at 3574.62 and the 200-day SMA at 2945.77.
IRCTC shares were listed on October 14, 2019. The share debuted at Rs 644, a 101.25% premium over the initial public offering (IPO) price of Rs 320 Since then, the stock has climbed 1,108.98% from its IPO price. .
The IRCTC is in demand recently, as the theme of reopening is gaining momentum after Covid-related travel restrictions across the country. Investors also anticipate big gains for the company from the Indian Railways asset monetization plan.
The monetization plan envisions allowing private companies to lease and operate government-owned infrastructure in all sectors. This includes the movement of passenger trains, the redevelopment of railway stations and settlements, the operation of freight terminals and rail lines.
Earlier this week, the IRCTC opened a new executive lounge at New Delhi Station (NDLS) to provide an enhanced travel experience for passengers traveling by train.
Passengers are expected to pay an entrance fee of Rs 150 plus tax for the first hour and Rs 99 for each additional hour to access this newly commissioned executive lounge. The lounge is now operational 24/7 and the entrance fee includes a host of services such as comfortable seating, free Wi-Fi internet, retailing of books and magazines, tea or coffee. free coffee or drinks.
According to recent media reports, IRCTC is aggressively focusing on its hospitality business by partnering with hotels, travel and travel service providers and local food suppliers. It also pays particular attention to its food chain activity in train traffic. The IRCTC has also established relationships with airlines.
Meanwhile, the board of directors of the company recommended in August 2021 the proposal to subdivide one share with a par value of Rs 10 each into five shares with a par value of Rs 2 each (5 to 1 ), subject to the approval of Ministry of Railways, shareholders and other approvals which may be required.
IRCTC, a public sector company of Mini Ratna under the administrative control of the Department of Railways, is the only entity authorized by Indian Railways (IR) to provide railroad catering services, railway tickets in line and conditioned drinking water in stations and trains in India. As of June 30, 2021, the Indian government held 67.4% of the company’s capital.
The IRCTC posted a net profit of Rs 82.52 crore in the first quarter of fiscal 22, compared with a net loss of Rs 24.6 crore in the first quarter of fiscal 21. Operating income jumped by 85.3% yoy to Rs 243.36 in the first quarter of fiscal 22 compared to the first quarter of fiscal 21.
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