Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have slipped 26% in the last on year, logging losses for the first time in a fiscal since their listing in October 2019. The stock has seen subdued sentiment since March 31, 2022. The stock, which stood at Rs 774.60 on March 31 last year was trading at Rs 574 in the current session , clocking losses of 25.83% during the period. The stock of the tourism and ticketing arm of Indian Railways rose 1.78 per cent to Rs 574.50 against the previous close of Rs 564.45 on BSE today. Total 0.33 lakh shares of the firm changed hands amounting to a turnover of Rs 1.88 crore on BSE. Market cap of IRCTC stood at Rs 45,960 crore.
In terms of technicals, the relative strength index (RSI) of IRCTC stands at 26.4, signaling it’s trading in the oversold territory. IRCTC stock has a one-year beta of 1.2. This signals the stock has high volatility and carries higher risk. The large cap stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
IRCTC stock has a price to equity ratio of 47.84, which is lower compared to the industry PE of 50.45. This signals that the stock is undervalued compared to its peers.
IRCTC logged a 22% rise in net profit to Rs 256 crore for the quarter ended December 31, 2022 against Rs 209 crore in the year-ago period.
IRCTCтАЩs revenue climbed 70% to Rs 918 crore in Q3 as compared to Rs 540 crore in Q3FY22. The company announced interim dividend of Rs 3.5 per share.
EBITDA rose 16.7 percent to Rs 325.8 crore in Q3 from Rs 279.2 crore in corresponding period of previous year.
HereтАЩs a look at what analysts said about prospects of the IRCTC stock amid the current correction for the stock.
Ravi Singh, Vice President and Head of Research, Share India said, тАЬIRCTC is under continuous selling pressure and the correction may continue further in near term. The stock may touch the levels of Rs 550 – 500 in coming weeks. Investors must avoid taking any fresh long position in the stock and wait for the trend reversal.тАЭ
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, тАЬThe stock has witnessed a steep correction in the past 3 sessions breaking below the crucial trendline support of 588 levels and has further weakened the trend to anticipate for further downward slide. The previous crucial low made was near 557 level which can kept as the next major support zone but already the trend has turned bearish and keeping this in mind one can take action in this stock. For the bias to improve, the stock needs to move past the Rs 588-590 zone to expect for some further upward move.тАЭ
Abhijeet from Tips2trade said, “IRCTC looks bullish on the daily charts with strong support at Rs 757. A daily close above resistance of Rs 585 could lead to targets of Rs 600-635 in the near term.”
Om Mehra, Equity Research Analyst, Choice Broking said, “The stock of IRCTC, India’s state-owned railway ticketing and catering company, has significantly underperformed over the last one and a half year. From the Fibonacci retrenchment in a larger time frame, it is currently trading at 0.618 levels which resembles at 560 levels. Furthermore, IRCTC is currently trading below all significant moving averages, suggesting further weakness in the stock’s price. Indicators such as RSI and MACD also indicate fragility in price action. The next important support level for the stock remains at Rs 380-410 zone. Considering all important factors, it is advisable for investors to refrain from taking aggressive long positions in IRCTC at this time.”
IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.
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