IRCTC shares have been a latest entrant into the list of multibagger stocks of 2021 in India as the stock has yielded around 120 per cent this year
Multibagger stock: IRCTC shares continued to rally for the third straight session on Tuesday with the stock hitting a new lifetime high of ₹3,296.75 per share in early deals. After giving breakout above ₹3,000 yesterday, IRCTC share price today shot up over 9 per cent. The stock is the latest entrant into the list of multibagger stocks of 2021 in India as it has yielded around 120 per cent in year-to-date (YTD) period.
The Indian Railways' PSU stock has been in a continuous run of giving stellar return to its shareholders since listing in October 2019. Against its IPO issue price, IRCTC share price has shot up around 10 times from ₹320 per share to ₹3,296.75 per stock levels in around 2 years.
Stock market analysts are further bullish on this multibagger stock. They are of the opinion that market has gone highly positive about the counter after IRCTC divulged its aggressive expansion plan in the hospitality sector. Market experts believe that IRCTC shares may go up to ₹5,000 levels in next one and half to two year time-frame.
Speaking on the IRCTC share price outlook; Sumeet Bagadia, Executive Director at Choice Broking said, "IRCTC shares have given breakout above ₹3,000 and has achieved its immediate target of ₹3200. Now, it may go up to ₹3400 soon."
On the reason for such a strong rally in IRCTC shares; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Correction in IRCTC share price due to Covid-19 was a great opportunity for portfolio investors to latch onto it as everyone wanted to buy it at any price before Covid-19 spread because of its monopoly and future growth outlook. The reopening theme gaining momentum and Railways' asset monetization plan are some major triggers for IRCTC shares’ re-rating."
Pressing upon the aggressive expansion in the hospitality sector; Ravi Singhal, Vice Chairman at GCL Securities said, "IRCTC share price rally is mainly because of the company's aggressive focus on its hospitality business where it has been making tie-ups with hotels, aviation and surface transport service providers. It is also tying up with local food suppliers that means the IRCTC management is in mood to emerge as A to Z solution provider in the hospitality sector. One should hold or buy this counter for the long-term keeping 18 to 24 month target of ₹5,000."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.