IRCTC share price rebounds after retracing from 52-week high. Buy, sell or wait?

IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) opened higher on Monday at ₹750.65 against the closing price of ₹749.55 on Friday. The stock went on to touch an intraday high of ₹766.55 today within a few minutes of the morning session.

Around noon, the stock was trading in the green at ₹760, up nearly 2 percent.

It hit a 52-week high of ₹769.85 apiece during Friday's deals before finishing the day at ₹749.55.

Triggers for IRCTC share price

“IRCTC shares present a compelling opportunity for long-term investors, given the company's dominant position in the online ticket booking sector. As a public sector undertaking (PSU), IRCTC is strategically diversifying its operations into hospitality, online catering, and various other businesses. The company's ambitious plan to introduce numerous new trains over the next four to five years is anticipated to yield substantial benefits for its current shareholders,” said Anirudh Garg, Founder & Fund Manager at Invasset.

Giving a 'buy' rating, the market expert said that IRCTC has not mirrored the bull trend witnessed recently in the PSU stocks and that the current breakout could be the beginning of a new rally in the Indian Railways' PSU stock.

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"While the COVID-19 pandemic posed challenges, IRCTC pivoted its business model by expanding into additional segments such as online air and bus ticket bookings, hotels, and hospitality services like online food orders. With pandemic-related restrictions easing, IRCTC is swiftly regaining momentum in its core online railway ticket booking business. Investors are optimistic about the company's future prospects, especially with the upcoming Lok Sabha elections expected to keep PSU stocks in the spotlight. As the economic landscape evolves, IRCTC may serve as a key player in the resurgence of the railway and hospitality sectors," Garg concluded.

IRCTC share price target

Sumeet Bagadia, Executive Director at Choice Broking, said that IRCTC share price gave a breakout at ₹760 apiece on Friday. Now, the stock is in uptrend and it may breach its current 52-week high and hit the ₹800 per share level in the near term. He went on to add that on breaching this ₹800 level, it may soon go up to the ₹850 apiece level in the short term.

However, Bagadia strictly advised IRCTC shareholders to maintain stop loss at ₹730 per share.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.