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Published: December 27, 2023
Updated: December 27, 2023

IRCTC Shares slip after a long surge driving to 52 week high

As we step into the financial year 2023-24, Indian Railway Catering and Tourism Corporation (IRCTC) has been on a notable uptrend, rebounding from around ₹560 apiece at the end of March 2023. Recent market dynamics have seen IRCTC shares reaching a pinnacle at a 52-week high of ₹916.50 per share on the NSE during Tuesday's deals last week.

Recent Performance and Profit Booking Despite the recent high, the shares experienced profit booking after reaching the peak, closing at ₹858.80 per share on Friday last week. This brings us to a crucial juncture — an opportune moment for investors to reassess their positions.

Expert Insights: Fundamentals and Technicals Align

Market experts assert that IRCTC's share price exhibits strength from both fundamental and technical perspectives. With a focus on chart patterns, analysts anticipate a potential bounce back from support levels around ₹815 per share.

Strategic Moves and Growth Factors:

The company's performance highlights a rise in year-over-year revenue from internet ticket booking, tourism, and Rail Neer. Notably, IRCTC has expanded its operations, adding 11 pairs of Vande Bharat trains and 18 new static catering units.

Market Advice: Accumulation Amid Dips

Experts advise shareholders to consider accumulating more in the current dip, projecting better numbers for IRCTC in the second half of the fiscal year. For fresh investors, the strategy of 'buy on dips' is recommended, with a suggested stop loss at ₹815 per share.

Outlook and Potential Triggers:

Looking ahead, several factors could influence IRCTC's share price. The company's plans for continuous improvement, increased use of UPI for ticket bookings, collaboration with Zomato, and ongoing negotiations for Catering license renewal are seen as potential triggers for a positive turnaround.

Target Price and Strategies:

With an optimistic outlook, experts like Sumeet Bagadia suggest a bullish stance on IRCTC's share price. Holding the stock with a stop loss at ₹815 per share is advised for existing shareholders. For fresh investors, the suggested buying range is around ₹845 to ₹850 per share, with a near-term target of ₹950 apiece.

Seizing the Opportunity:

The current retracement from the 52-week high presents an intriguing opportunity for investors. Whether holding existing shares or considering an entry point, a strategic approach aligned with market insights could prove beneficial. As IRCTC anticipates a promising second half of the fiscal year, investors should remain vigilant and consider their positions accordingly.