IRCTC share dips 50% from 52-week high. Should you buy this debt-free stock?

IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have been correcting after scaling to its life-time high or 52-week high of ₹1279 levels in October 2021. The Indian Railways' PSU stock witnessed sharp downside movement after the outbreak of Russia-Ukraine war around 15 weeks ago. IRCTC share price today is ₹644 per share, which is near 50 per cent down from its 52-week high.

According to stock market experts, IRCTC share price currently trading in the range of ₹625 to ₹690. They said that the stock may go further down by around ₹70 to ₹80 per share, if it breaks the current ₹625 per share levels. They advised positional investors to maintain buy on dips strategy in regard to IRCTC shares as it is a quality stock with monopoly business and strong fundamentals.

Speaking on IRCTC share price outlook, Tirthankar Das, Head of Technical Research at Ashika Group said, "IRCTC share price has been seen on a base building mode at 61.8 per cent retracement at 640-650 of Nov’20-Oct’21 rally. One of the top performer in 2021 is now witnessing consolidative price action amidst the range of 625-690. Key observation being the presence of Class B divergence (moderately bullish). Though it would be premature to term the present consolidation as end of corrective decline, further confirmation in the form of time and volume is required to recognize it as an elevated bottom."

Expecting more weakness in IRCTC share price, Ravi Singh, Vice President & Head of Research at Share India said, "IRCTC shares are looking weak on chart pattern and it may go down towards ₹600 levels or may be below ₹600 levels. An investor should avoid taking any fresh position at current levels and wait for few more sessions." He said that the company is a debt-free company with almost monopoly in internet train ticket booking business. So, one can add the stock for long term once it comes out of the base building mode.

Manoj Dalmia, Founder & Director at Proficient Equities Limited said, "IRCTC share price is currently trading at below 200 DEMA (Daily Exponential Moving Average) and we are expecting this stock to fall further up to ₹550 to ₹535 levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.