IRCTC share price slumped to Rs 815.60 in March after passenger train services were suspended due to nationwide lockdown. In less than two months, IRCTC stock price has advanced 64 per cent
IRCTC share price hit 5 per cent upper circuit to Rs 1,334 apiece on BSE in early morning trade on Wednesday as Indian Railways has announced that 200 non-air-conditioned and time-tabled trains will resume services from June 1, 2020. Besides, Indian Railway Catering and Tourism Corporation has decided to double the number of Shramik special trains to 400 a day by this week. IRCTC share price slumped to Rs 815.60 in March after passenger train services were suspended due to nationwide lockdown. In less than two months, IRCTC stock price has advanced 64 per cent. “Even post lockdown sudden spike in sales volume may come but it may not last long due to various norms of social distancing. In this momentum rally till 1380-1400 can be seen,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.
Despite today’s rally in the stock, the stock is still down 33 per cent from its all-time high level of Rs 1,995 touched in February this year. Last week also, IRCTC shares hit the upper circuit after Indian Railways announced a gradual resumption of passenger trains operation and opened booking for reservation. IRCTC shares were listed on bourses on October 14, 2020, at a listing price of Rs 644. The issue price of IRCTC shares was Rs 320.
The listing of IRCTC shares on bourses has not even completed a year and the stocks have zoomed over 315 per cent against its issue price, while 107 per cent from listing price. However, analysts suggest to stay away from stocks related to the public sector. “It is just a time part of the relief rally. The momentum will fizzle out,” said Vishal Wagh. “Till the time lockdown condition does not get resolved and normality gets resorted the key business will see a major drop in sales,” he added.
According to Indian Railways, tickets for non-AC trains can only be booked online from the IRCTC next-generation e-ticketing website (irctc.co.in) or mobile app IRCTC Rail Connect. “Within the next two days, Indian Railways will double the number of Shramik Special trains to 400 per day. All migrants are requested to stay where they are; Indian Railways will get them back home over the next few days,” Railway Minister Piyush Goyal said in a tweet. IRCTC has been conferred the Mini Ratna (Category-1 PSE) status by the government of India.