Analysts View on how IRCTC Managed to Surpass Rs 1 Trillion M-Cap

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Analysts View on how IRCTC Managed to Surpass Rs 1 Trillion M-Cap
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Trading at Rs 6,260.65 apiece at 11:20 am on Tuesday, the share price of the e-ticket booking platform for Indian Railways, IRCTC (NS: INIR ) climbed up by over 6.5% during the mid-day hours.

The Indian government-owned subsidiary has joined the elite Rs 1 trillion market capitalization club as its share prices have skyrocketed by record numbers of over 300% for the ongoing year, with its m-cap at Rs 1.01 trillion.

This feat makes IRCTC the ninth public sector undertaking to have made its way in the Rs 1 trillion m-cap club in India, after SBI (NS: SBI ), Coal India (NS: COAL ), NMDC Ltd (NS: NMDC ), Indian Oil (NS: IOC ) Corp. Ltd, Power Grid (NS: PGRD ) Corp. Ltd, SBI Life Insurance Company Ltd (NS: SBIL ), Bharat Petroleum (NS: BPCL ) Corp., and SBI Cards and Payment Services Ltd (NS: SBIC ).

With its official listing on exchanges in October 2019 priced at Rs 320 a (share) piece, IRCTC’s stocks have rallied by 1,737%, which is more than 18 times its launch price.

Considering its price spike only for the ongoing year, the figure marks a gain of 308.1%, and its monthly gain for September 2021 lies at 58%.

With the vaccination drive proceeding in full throttle and active Covid-19 cases reducing across the country, paired up with the economy and travel recoveries coming strong, IRCTC’s progress is set to gain further momentum, state analysts.

The vice president, advisory of Marwadi Financial Services, Akhil Rathi adds, “Internet ticketing saw a jump in Q1 due to the low base last year; we expect this segment will grow substantially higher in the second quarter at about 50% compared with Q1. Also, the number of trains will increase which will increase the revenue for Rail Neer and Catering services.”

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  • Aditya Parde @Aditya Parde
    3500 looks like a good support for sideways consolidation
    Like 0
  • Grand Walker @Grand Walker
    How to identify Risky shares: They have indicators of Lower Circuit and Higher Circuit. If you spot any of these Circuits more than once, beware of such shares. Do not think of buying them at LC but get rid of them quickly if you hold them, including Penny stocks blooming in this market monsoon.
    Like 1
  • Grand Walker @Grand Walker
    Now this is just a trailer and could happen with any such stock touching Life-time Highs almost every other day on a regular basis – especially Small Caps and Micro-caps that come under High Risk category. Examples include many I.T./Software stocks and shares of other sectors too.
    Like 5
  • Grand Walker @Grand Walker
    IRCTC's Intrinsic Value: Rs 384, stock is trading at PE 324. That's an Alarming Warning especially for the retail investors. 2 years back, its PE was 43.6 (18-10-19) and closing price was 779.20. PE shot up exorbitantly 7.43 Times from 43.6 while the stock price shot up 8.21 Times to Rs 6396.30
    Like 4
  • Rajeev Bajaj @Rajeev Bajaj
    Comparing to loss making Zomato with no IP or control , with limited reach in Tier 1 and Urban cities only , IRCTC is much stronger and stable business model. Today's aberrations were mainly due to profit booking by short term thinking traders
    Like 4
  • Rayhan Arif @Rayhan Arif
    i want to earn money
    Like 0
  • Kajal Datta @Kajal Datta
    IRCTC is not a over valued "Rama-Sama" stock
    Like 0
  • Raghu Allam @Raghu Allam
    hyped up stock
    Like 2
  • Babu Bagh @Babu Bagh
    more 20% downside
    Like 2
  • jyoti devpura @jyoti devpura
    15% fall😅
    Like 3
  • jyoti devpura @jyoti devpura
    lower circuit
    Like 1
    • Aditya Parde @Aditya Parde
      id wait till 3500
      Like 1
    • Jay Ojha @Jay Ojha
      SIP dude or you'll keep waiting
      Like 0
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  • LIC Shivakumar Bangalore @LIC Shivakumar Bangalore
    most of the Government companies are doing good.
    Like 0
    • Ime my @Ime my
      GooD joke...😆
      Like 3
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      100
  • Mansi Madap @Mansi Madap
    Interesting.
    Like 2

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