IRCTC shares jump 3% to hit 52-week high: Here's why
What's the story
Shares of IRCTC climbed 3% to hit a new 52-week high of Rs. 799.95 on December 14, as the company announced ambitious expansion plans in the non-railway catering sector across India.
The Miniratna PSU is looking to extend its brand and business beyond railways.
It currently manages catering services for various Ministries and autonomous bodies, including the Judiciary and Universities.
Details
Expansion into non-railway catering
IRCTC has already set up hospitality outlets in nine organizations, such as the Department of Telecommunications in New Delhi, Calcutta High Court, and UP Secretariat in Lucknow.
The company has inked MoUs with several government bodies, including defense establishments like Border Security Force, Indian Maritime University in Kolkata, and Cotton University, Guwahati.
IRCTC plans to launch 15 more catering units across the country soon.
What Next?
Long-term investment opportunity
Anirudh Garg, founder & fund manager at Invasset, sees IRCTC shares as an attractive opportunity for long-term investors due to the company's strong position in the online ticket booking market.
As a PSU, IRCTC is strategically diversifying its operations into hospitality, online catering, and various other businesses.
Garg added that IRCTC's plan to introduce numerous new trains over the next four to five years is expected to bring significant benefits for current shareholders.
Insights
Targets, stop loss, and entry points
Sumeet Bagadia, Executive Director at Choice Broking, advises IRCTC shareholders to hold the stock for a target of Rs. 850 once it decisively breaches the Rs. 800 hurdle.
He recommends updating the trailing stop loss at Rs. 775 per share levels.
For those looking to make fresh investments in IRCTC shares, Bagadia suggests buying around Rs. 790 to Rs. 785 apiece levels for a near-term target of Rs. 850, while maintaining a stop loss at Rs. 775.