For the third day in a row, IRCTC (Indian Railway Catering and Tourism Corporation) shares have risen. On the Bombay Stock Exchange, its share price achieved an all-time high of Rs 3,296. After being knocked down by the second wave of Covid-19, IRCTC's stock has swiftly recovered. According to numerous analysts, investors should take advantage of the dip during the second wave. This year has seen a favourable influence from the Indian Railways' Asset Monetisation Programme and the IRCTC's aim to expand its hotel sector. As a consequence, analysts anticipate that the stock will hit Rs 5,000 in a short period. According to one analyst, the price of IRCTc shares may also hit Rs 3,400 by the time the firm achieves that level.
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) rallied for the third straight session, rising nearly 10 per cent at the end of Tuesday’s stock market closing.
The stock hit an all-time high of over Rs 3,296 per share on the Bombay Stock Exchange (BSE) in early trade and ended the day at Rs 3,288.65, up 9.28 per cent. On the National Stock Exchange (NSE), IRCTC shares ended 9.56 per cent higher at Rs 3,295.90.
Many analysts have termed IRCTC as one of the year’s multi-bagger stocks, given its sharp jump of around 120 per cent in the year-to-date (YTD) period.
Reason Behind Irctc’s Stellar Performance
Shares of IRCTC have enjoyed a stellar run over the past few months and its valuation has jumped nearly 10 times after it got listed on the stock market in October 2019. It was listed at Rs 320 per share and has shot up to Rs 3,288 per share in just 2 years.
IRCTC shares have recovered rapidly after dipping due to the second Covid-19 wave. Many analysts indicated that the dip during the second wave offered an ideal opportunity to retail investors to buy into the stock, given the future growth outlook.
The reopening of economic activities further boosted IRCTC’s stock price besides the Indian Railways’ asset monetisation plan. Some analysts also indicated that the reason behind IRCTC’s stellar performance is also due to its focus on aggressive expansion in the hospitality sector.
Should You Subscribe
IRCTC’s stock has already jumped sharply over the past two years, but analysts say the stock may gain further due to the advantage IRCTC enjoys.
Analysts believe IRCTC’s plan to aggressively expand in the hospitality business will take the stock to new heights this year. An analyst who spoke to livemint.com said IRCTC shares may touch Rs 5,000 levels in the next 1.5 to 2 years. In the near term, the stock could cross Rs 3,400.