After IRCTC's blockbuster listing yesterday, experts caution against buying the railway PSU stock at current levels.
After IRCTC’s blockbuster listing yesterday, experts caution against buying the railway PSU stock at current levels. IRCTC share price more than doubled investor wealth on listing on Monday, after the railway PSU’s IPO earlier this month. Indian Railway Catering and Tourism Corporation (IRCTC) shares listed at Rs 644 on the BSE, implying a listing gain of more than 125 per cent as compared to the issue price of Rs 320. Notably, IRCTC IPO got a stellar response, getting subscribed by 112 times, making it the most subscribed PSU issue ever. The Rs 645 crore IPO saw bids worth more than Rs 72,000 crore.
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While investors maybe ruing the lost opportunity, analysts caution against jumping in to buy at current levels. “I do not believe that investors need to rush in to buy. The ideal strategy will be to wait out for some time, watch incoming results and then invest,” investment advisor Sandip Sabharwal told Financial Express Online. IRCTC shares are trading at Rs 719.60 on BSE, or more than 2.25 times the issue price of Rs 320. According to Astha Jain, Senior Analyst at HEM Securities said that retail investors should not buy at current levels, and look to enter IRCTC shares around Rs 400-450 level. “Given its robust profitability and debt-free status, IRCTC is a good bet for the long-term,” Astha Jain told Financial Express Online.
(Please consult your financial advisor before taking any investment related decision)