Multibagger Stock: Shares of IRCTC continued to rise for the third consecutive session on Tuesday, with the Indian Railways PSU hitting new all-time highs ₹3,296.75 per share in opening deals. After giving above breakout ₹3,000 yesterday, IRCTC’s share price jumped over 9 percent today. The stock is the latest entrant in the list of multibagger stocks of 2021 in India as it has given nearly 120 per cent returns in the year-on-year (YTD) period.
If we look at the journey of IRCTC in the Indian stock market, the stock has been giving great returns to its shareholders from the day it was listed on the Indian stock exchanges (14 October 2019). compared to its issue price ₹from 315 ₹320, IRCTC shares make their debut ₹646 on BSE while it opened ₹626 in NSE. Hence, IRCTC passed around 96 per cent listing benefit to its lucky bidders. However, if we compare the IRCTC issue price with today’s IRCTC share price, it has increased almost 10 times ₹from 320 ₹3,296.75 per stock level in about 2 years.
However, stock market analysts are still bullish on IRCTC shares. He believes that the market has become highly positive about the counter after IRCTC revealed its aggressive expansion plan in the hospitality sector. He believes IRCTC shares may go up ₹5,000 level over the next one-and-a-half to two years time-frame.
Speaking on IRCTC share price outlook; Sumeet Bagdia, Executive Director, Choice Broking said, “IRCTC shares have given a breakout above ₹has achieved its immediate target of 3,000 more ₹3200. Now, it can go up ₹Soon 3400.”
Reasons for such a strong rally in IRCTC shares; Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “The correction in IRCTC share price due to COVID-19 was a great opportunity for portfolio investors to grab hold of it as everyone can take it before the outbreak of COVID-19. Wanted to buy at the price. Its monopoly and future development outlook. The resumption theme is gaining momentum and Railways’ asset monetization plan are some of the major triggers for re-rating of IRCTC shares.”
to press for aggressive expansion in the hospitality sector; Ravi Singhal, Vice Chairman, GCL Securities, said, “The IRCTC share price rally is primarily due to the company’s aggressive focus on its hospitality business where it is tying up with hotel, aviation and surface transport service providers. This means IRCTC management is in a mood to emerge as an A to Z solution provider in the hospitality sector. Keeping in mind the target of 18 to 24 months this counter should be held for a long time. Or should I buy? ₹5,000.”
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