Indian Railway Catering and Tourism Corporation or irctc share price today climbed to the new peak of ₹3,587 per equity share. Indian Railways PSU stock opened today with a difference of above ₹51.25 and moved to new lifetime highs – registering a rise of nearly 4.5 per cent in early morning deals. According to experts, this rally in IRCTC share prices is expected to continue as IRCTC’s aggressive expansion in the hospitality sector and asset monetization move by Indian Railways has given a boost to the market. He said that IRCTC is a tried-and-tested player in running private trains and now after the news of world class lounges at New Delhi railway stations, road observers have come to know that IRCTC will also benefit in platform monetization.
Speaking on the reasons which are driving up the IRCTC share price; Ravi Singhal, Vice Chairman, GCL Securities said, “IRCTC is aggressively focusing on its hospitality business by tying up with hotel, tour and travel service providers and local food suppliers. It is also focusing on its food chain business in running trains. Apart from this, IRCTC has also tied up with airlines. Hence, the market has assured that in the times to come, it will no longer be the e-ticket booking platform of Indian Railways. It will be part of Aged Hospitality Service. will emerge as the provider.”
Echoes with Ravi Singhal; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “IRCTC is in strong bullish momentum where it has grown over 100 per cent in 2021 and has crossed the psychological level. ₹3000. Correction due to COVID-19 was a great opportunity for portfolio investors as everyone wanted to buy it at any cost before COVID-19 because of its monopoly and future growth outlook. The reopening theme is gaining momentum while it has a tailwind of stock split news. Railway’s asset monetization plan is another trigger for its re-rating.”
On IRCTC getting the benefit of Indian Railways’ asset monetization move, Ravi Singhal of GCL Securities said, “More private trains are expected to run on railway tracks. Since, IRCTC is a tried and tested player in this business Apart from this, Indian Railways is also going to monetize its platforms. Following the news of IRCTC’s world class lounge at New Delhi Railway Station, Dalal Street has realized that The business opportunity for IRCTC in Indian Railways is ‘Platform Monetization as well.”
When asked about the outlook for IRCTC share price; Both the experts said that IRCTC shares are positive and may go up. ₹4000 in the medium term while it can go up in the long term ₹from 5000 ₹5100 per equity share level.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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