IRCTC spurts over 31% in five days; m-cap crosses 1-lakh cr mark

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Indian Railway Catering and Tourism Corporation (IRCTC) jumped 6.90% to Rs 6282.90, extending gains for the fifth day. The stock has risen 31.64% in five sessions from its last closing low of Rs 4,772.85 on 11 October 2021. IRCTC’s market capitalisation (m-cap) has crossed Rs 1 lakh crore mark. The stock hit a record high of Rs 6375.45 today. It has surged 386.67% from its 52-week low of Rs 1,291 hit on 4 November 2020. In the past month, the stock has surged 63.69% against a 5.33% rise in the Sensex.

On the technical front, the stock’s RSI (relative strength index) stood at 82.28. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 20-day simple moving average (SMA) placed at 5722.62 and 50-day SMA at 5198.59. These levels will act as near-term support.

IRCTC has fixed 29 October 2021 as the record date for the proposed 5-for-1 stock split. The company’s board in August 2021 recommended the proposal for a sub-division of one equity share of the face value of Rs 10 each into five equity shares of the face value of Rs 2 each (5-for-1).

IRCTC, a Mini Ratna public sector enterprise under the administrative control of the Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. The Government of India held a 67.4% stake in the company.

IRCTC posted a net profit of Rs 82.52 crore in Q1 FY22 compared with a net loss of Rs 24.6 crore in Q1 FY21. Revenue from operation jumped 85.3% year-on-year to Rs 243.36 in Q1 FY22 over Q1 FY21.

Shares of IRCTC were listed on the bourses on 14 October 2019. The stock debuted at Rs 644, a premium of 101.25% to the initial public offer (IPO) price of Rs 320. The stock has soared 1863.41% from its IPO price.

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