IRCTC share price retraces from 52-week high. Opportunity to buy?

Last week, IRCTC share price touched 52-week high on two straight sessions on Monday and Tuesday. However, after touching 52-week high of ₹916.50 per share on NSE during Tuesday deals last week, IRCTC share price witnessed profit booking on Wednesday and it ended at ₹858.80 per share levels on Friday last week.

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According to stock market experts, IRCTC share price is in uptrend on chart pattern and it may bounce back from its support levels, which is placed around ₹815 apiece levels. They said that company has witnessed rise in YoY revenue of internet ticket booking, tourism revenue and Rail Neer revenue. The company has added 11 pair of Vande Bharat trains and 18 new static catering units. 

Market experts said that IRCTC is expected to give better numbers in second half of the current fiscal and advised IRCTC shareholders to accumulate more in current dip. They advised fresh investors to maintain ‘buy on dips’ maintaining stop loss at ₹815 per share levels.

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Triggers for IRCTC share price

On triggers that may help IRCTC share price to bounce back, Harinder Sahu, Founder at King Research Academy said, “IRCTC plans to continue improving and expects better performance in the second half of FY24. The percentage of tickets booked using UPI has increased to 38%. The company is considering introducing new features and products based on market trends. The potential revenue and margin growth for the Catering and Internet Ticketing segments depend on the number of trains and services introduced by Indian Railways. The collaboration with Zomato is still in the early stages, and the volume and earnings patterns will be clearer in the next quarter.”

“IRCTC’s Internet Ticketing segment saw a 9% YoY growth in revenue. The Tourism and State Teertha segment saw strong revenue growth of 63% YoY. Rail Neer revenue increased by 4% YoY,” Harinder Sahu said.

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Highlighting at IRCTC operations, SEBI registered expert added, “IRCTC has added 11 pair of Vande Bharat trains and 18 new static catering units. The license renegotiation for Catering has been completed, but realization is pending due to court cases. The company is producing around 12 lakh liters of Rail Neer per day, with a capacity of 16 lakh liters per day. The Bhubaneswar and NTPC-Simhadri Rail Neer plants are expected to be operational in Q3 of FY24. The company is in talks with the Ministry of Railways regarding the Tejas train online charges.”

IRCTC share price target

Expecting bounce back in IRCTC share price, Sumeet Bagadia, Executive Director at Choice Broking said, “IRCTC share price is looking bullish on chart pattern. After recent bull run, IRCTC share price has taken strong support at ₹815 per share levels. Those who have IRCTC shares in stock portfolio can hold the scrip with stop loss at ₹815 per share levels. They can think of adding more in current dip for near term target of ₹950 per share.”

On suggestion to fresh investors, Sumeet Bagadia of Choice Broking said, “Fresh investors are advised to maintain buy on dips strategy maintaining stop loss at ₹815 per share levels. However, ideal buying levels for one time investor is around ₹845 to ₹850 per share levels for near term target of ₹950 apiece.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Published: 25 Dec 2023, 09:10 AM IST