IRCTC or Indian Railway Catering and Tourism Corporation is currently trading at INR 728 which is almost 3 percent higher from the yesterday’s close.
There is a reason why this stock went up to INR 758 in the today’s trading session. I should tell you that this stock opened at 710 which is slightly higher than the previous close of 707.25. It touched the low of 707.30 today but bounced back from that price.
Actually, the news is that according to a directive from the Ministry of Railways, IRCTC can entertain the catering facilities in all the coaches or trains booked on full tariff rates. This will apply to all the future bookings, including where the journey is yet to start.
It is important to note that full tariff rate service will allow passengers to book full trains for marriage or any program. One can do it on the Full Tariff Rate (FTR) website.
We can assume that it is a massive development for the IRCTC company because catering services contribute majorly to the revenue of IRCTC.
However, the stock didn’t sustain on the day’s high. It is currently trading now at 724.50.
We can be bullish on this stock because all the other shares of Indian Railways like RVNL, has given 300 percent returns in one year which is huge. Currently, RVNL is trading at 162.85 which is 5.8% up from the previous close. Therefore, there is much scope of upside left in the IRCTC stock because, its 52-week high is 774.9. Therefore, this development for the IRCTC stock might prove fruitful for it.
However, these are my personal views, not any trading recommendations. You do your analysis first before trading.
I have bought a few shares of IRCTC today, hoping it to go higher on Monday so that I can square off my position easily.