Why IRCTC Shares Hit All-Time High? Read What Experts Have To Say

After breaking out at 2075 per stock levels, the IRCTC stock price reached a new high of Rs 2173 today. IRCTC shares, according to stock market experts, are optimistic till they trade over 2050 per stock barrier, and they may soon reach 2500 levels. Those who desire a fresh entry into the Indian Railways' PSU stock could buy between 2100 and 2150, according to experts told PTI.

Shares of IRCTC were trading at Rs 2,173, up 3.77% or 73.75 points on NSE at 11.13 am IST. It touched an intraday high of Rs 2,180 during the trade.

Company Details
Name: IRCTC
Market Cap: 34.07 TCr
P/E ratio: 144.04
Div yield: 0.59%
Prev close: 2,094.80

What is the reason for IRCTC rally?

This rapid surge in IRCTC shares, according to stock market experts, can be linked to the loosening of lockdown restrictions, airline traffic doubling in June 2021 fueling speculation for the same in Indian Railways traffic, and solid fundamentals of the Indian Railways' PSU stock.

IRCTC Company details

IRCTC provides highly scalable and unrivaled chances to solely participate in the Indian Railway (IR) traffic development, Train tourism, and Hospitality (Catering+Packaged Drinking Water, Accommodation) growth stories. Strong adoption of online ticketing during the pandemic, conversion of unreserved coaches to 2S category, increasing TAM for Ticketing, multi-fold scaling-up in PDW capacity, entry into passenger rail operations (3 trains, more to follow), and a 60% increase in catering pricing are expected to act as a "profit windfall" in the coming quarters, boosting financial growth, return ratios, and operating margins.

IRCTC share price target

Rohit Singre, Senior Technical analyst at LKP securities

Rohit Singre, Senior Technical Analyst at LKP Securities, commented on the IRCTC share price forecast: "The share price of IRCTC has broken out at 2075, and the counter is currently quite positive. It has the potential to reach new highs of 2300 and 2500. Those that own IRCTC stock should keep it in their portfolio and use a trailing stop loss at 2050."

Sumeet Bagadi, Choice Broking's Executive Director

Major IRCTC share price levels to keep in mind for stock market investors Choice Broking's Executive Director, Sumeet Bagadia, stated, "After sustaining over 1950 levels, IRCTC shares have produced a significant breakout. After overcoming the immediate 2100 hurdle, one can hold the counter with a stop loss around 1950 and expect an 8-10% upwards movement in the next 15-20 trade sessions."

IRCTC share price target

 Avinash Gorakshkar, Head of Research at Profitmart

Avinash Gorakshkar, Head of Research at Profitmart, highlighted the rationale for the IRCTC share price surge, saying, "The fact that airline travel doubled in June 2021 has fueled anticipation that train travel will double as well, if not more. Because IRCTC has a monopoly in the online train ticket booking market and operates at 60-65% margins, investors are flocking to IRCTC stocks, which have helped the Indian railways' PSU to record heights today."