New Delhi. The share price of Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of Indian Railways, crossed the Rs 5,000 level on Thursday, 14 October 2021. At the close of the market today, the share price of IRCTC had reached the highest level of Rs 5,485. IRCTC shares opened with a gain of Rs 76 and then continued to rise. By the time the market closed, a strong jump of 11.28 percent was registered in it.
How far can the share price go?
Experts believe that the all-time high of the company’s stock is yet to come. He says that the stock of a subsidiary of Indian Railways can soon go up to the level of Rs 5,800. In fact, the booking of train tickets has almost doubled during the July-September 2021 quarter. Its impact will also be seen on the second quarter results of IRCTC. The company has almost a monopoly in online train ticket booking. In such a situation, the share price of the company is expected to continue to rise. Apart from this, the company is also diversifying into the hospitality segment, which is giving a boost to the company’s share price.
Company is focusing on business expansion
IRCTC is aggressively focusing on its hospitality business. It is renewing tie-ups with hotels, tour and travel service providers and local food suppliers. IRCTC is also focusing on its food chain business in moving trains. Apart from this, the company has also tied up with many airlines. In such a situation, it has assured the market that in future it will not be limited only as an e-ticket booking platform of Indian Railways, but will emerge as a full-fledged hospitality service provider.
what investors to do
Sumeet Bagadia, Executive Director, Choice Broking has advised investors to buy at current levels. He said that IRCTC shares have strong support below Rs 5,000. Those who have this stock in their portfolio should maintain the investment with a stop loss of Rs 4950. In the short-term, this stock can go up to the level of Rs 5,600 to Rs 5,800. Positional buying can be done at the current level. However, the stop loss should be maintained at 4,950.
**(Disclaimer: Please consult a certified financial advisor before investing. Investment advice is the personal opinion of Choice Broking. News18 English will not be responsible for any profit or loss on investment. )