Railway Stock IRCTC Trades At New 52-Week High Value After Hitting Upper Circuit In Previous Session; Know Why

The share price of Indian Railways-backed catering service provider, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) touched a new 52-week high of 915 in the intraday trading on Tuesday. This is the second straight day when IRCTC shares have touched their 52-week high level as before this IRCTC stock price traded at a new 52 Week High value of 888.90 on Monday (Dec 18). The stock also touched the upper circuit Rs 859.00 on the same day.

The share price of Indian Railway Catering and Tourism Corporation was seen trading 3.19% higher at Rs 907.10 per share at 12:08 pm IST today. At this price, the company has a market capitalization of Rs 72,568.00 crore. Since December 12, 2023, IRCTC shares have touched their 52-week highs for almost 4 times.

Shares of IRCTC have been in focus recently, after the PSU recently said that it is on the road to proliferate in the areas of business beyond Railways for promoting its brand and business across the nation. Noticeably, with further plans to mark its signature in the catering business and customize to the requirements of clients, IRCTC has already signed MoUs with various government and autonomous bodies including defense establishments such as Border Security Force, Indian Maritime University - Kolkata, Cotton University - Guwahati and so on while the company is in active phase of commissioning 15 more catering units across the country in the near future.

Meanwhile, the railway company is in discussions with various other government organizations and industrial houses for setting up catering units and also offers comprehensive catering solutions in sync with its aim of becoming a premier brand of Hospitality and Catering in the country.

At present the company is managing catering services for various Ministries, Government Departments, and Autonomous Bodies including Judiciary and Universities. The company has already set up its hospitality outlets in 9 such organizations including the Department of Telecommunications - New Delhi, Calcutta High Court, UP Secretariat - Lucknow, and so on.

The year 2023 has been a year of remarkable growth for railway stocks. Railways stocks also seem to have a strong outlook ahead. Market experts believe that IRCTC shares provide an opportunity for long-term investors as the PSU's diversification in business and numerous new train launches are expected to benefit the company and its business model in the long term.

IRCTC Dividend, dividend yield, and stock price performance:

YTD, the stock has gained by nearly 41% on BSE. In the last six months, the stock has gained 35.66%. The returns from the stock have increased 33.84% in last one year. The outlook for IRCTC looks promising. According to Trendlyne, Indian Railway Catering & Tourism Corporation Ltd. has declared 8 dividends since Feb. 24, 2020.
In the past 12 months, Indian Railway Catering & Tourism Corporation Ltd. has declared an equity dividend amounting to Rs 8.00 per share.

At today's intraday price of Rs 905.70, this results in a dividend yield of 0.88%.