Last Updated on Nov 3, 2021 by Ayushi Mishra
Indian Railway Catering and Tourism Corporation (IRCTC) has given returns of more than 100% since September last year. This stock is continuously moving up showing a strong bullish trend. Recently it has been a lot in the news, read this article to know more about it.
IRCTC is a mini ratna public sector enterprise under the administrative control of the Ministry of Railways and it has a monopoly in India. It is the sole entity authorized by Indian Railways (IR) to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India.
Recently, the share prices recorded a new lifetime high by crossing Rs 3,000 on the stock exchange. In the past one month IRCTC has zoomed over 30% and it crossed the market cap of Rs 52,000 cr on BSE.
Reasons why IRCTC is in bullish trend:
Owing to COVID-19 restrictions relief, the travel segment looks better. This is due to fast speed vaccination drives that the restrictions are being released. Both the ticket booking and non ticket booking revenues are showing steady improvements.
Adding to this, on 12 August, 2021, board members of the company approved the stock split in the ratio of 5-for-1. Making the shares affordable for small investors.
And, after IRCTC released its plans about aggressively expanding in the hospitality sector, investors’ sentiments look positive. It is looking at expanding its advertising platforms together with brushing up its payment gateway. All this news is helping the stock rally up. Analysts suggest that the stock will continue to rise and in 18 to 24 month, it may break out and cross Rs 5,000 on the exchange.