BackIRCTC share price moves closer to ₹2,000 as stellar run continues
In Budget, Finance Minister Nirmala Sitharaman had announced that more Tejas-like trains will be coming in futureThe Kashi-Mahakal Express between Indore and Varanasi, the third private train operated by IRCTC, started is commercial run last week
PremiumDespite a muted Mumbai market, IRCTC shares today jumped as much as 4% hit a new high of ₹1,995 on BSE. Later IRCTC shares pared some gains and settled 1.5% higher at ₹1,952. In comparison, the BSE benchmark index Sensex fell 82 points today.
IRCTC has had a stellar run since getting listed on the stock exchanges on 14 October 2019 at ₹644, a premium of over 100% to the IPO issue price of ₹320.
In Budget 2020 proposals, Finance Minister Nirmala Sitharaman had announced that more Tejas-like trains will be coming in future. IRCTC had last year launched its first Tejas Express which runs on Lucknow-Delhi route, followed by another Tejas Express on Mumbai-Ahmedabad route. IRCTC follows dynamic fare scheme for both the trains.
The Kashi-Mahakal Express between Indore and Varanasi, the third private train operated by IRCTC, started is commercial run last week.
In the third quarter ended December 31, IRCTC's net profit jumped to ₹205.80 crore against from ₹73.60 crore in a year-ago period, driven by the reintroduction of service charge ( ₹15/ ₹30 per ticket for non-AC/AC respectively) from 1 September 2019. Net sales rose 64.6% to ₹715.98 crore in October-December period from ₹435.01 crore in the same period a year ago.
IRCTC had declared an interim dividend of ₹10 per equity share. Its board had fixed 25th February as the record date for the purpose of payment of dividend.
Monopoly business, a strong balance sheet and low floating stock and healthy return ratios have been attributed for the stellar run in IRCTC shares.
As of the December quarter, the government held 87.40% stake in IRCTC while the public 12.6% or about 2 crore shares. On Monday, about 1 crore shares were traded on NSE.
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