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IRCTC Shares Gave Investors 76% Returns In A Month

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Railway stocks have been gaining since the last week. However, the last seven trading sessions have been especially eventful for the IRCTC that has been surging to new all-time highs.

 

On Wednesday, the shares of the railway ticketing company jumped 10 percent to its fresh high of Rs 1,547.80 on NSE.

Since the 6 January closing price of Rs 894.45, the stock has surged 76 percent to Wednesday's high.

IRCTC Shares Gave Investors 76% Returns In A Month

IRCTC's board is scheduled to meet on 12 February to consider and approve the financial results of the company for the December-ended quarter and declare an interim dividend, if any.

The firm is also set to soon start its third private train, Indore-Varanasi Tejas Express, the first Tejas Express which will run overnight. At the Union Budget 2020, it was proposed that more Tejas-like trains will be launched in the future.

Further, the Competition Commission of India (CCI) on Tuesday absolved IRCTC of allegations of unfair market practices. The order came after the regulator in November 2018, ordered a detailed probe into the allegations of abuse of dominant market position against Ministry of Railways and IRCTC for charging a higher price than the actual base fare on the sale of e-tickets.

 

Since its debut on the stock exchanges in October, shares of IRCTC have jumped four times in value, making it the most successful IPO in recent times.

For the first half of 2019-20, IRCTC had reported a 14 percent jump in net profit at Rs 172 crore.

Analysts attribute low floating stock and monopoly business as reasons for the strong run in stock's value.

As of 31 December 2019, the government held 87.40 percent shares in the Indian Railways arm.

Read more about: irctc
Story first published: Wednesday, February 5, 2020, 12:37 [IST]
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