Analysts see 62% upside in IRCTC stocks after company posts strong Q3 earnings; recommend this

On the back of extraordinary third quarter results, several analysts see huge potential in Indian Railways Catering and Tourism Corporation (IRCTC) shares with an upside of up to 62 per cent. The company’s profit and revenue doubled during the December-end quarter of the current fiscal. 

IRCTC’s net profit doubled to Rs 208 crore as compared to Rs 78 crore and revenue from operation surged 141 per cent to Rs 540 crore as against Rs 224 crore year-on-year. Besides, the company has also declared an interim dividend of Rs 2, the record date being February 18, 2022. 

The surge in profit is due to the low base and contribution from all other segments, majority of analysts mentioned in Q3 earnings review of IRCTC. 

Manoj Dalmia, Founder and Director, Proficient Equities Limited, “The stock has been consolidating for a long time in a range and any breakout above Rs 926 per share will lead to good moves we expect a upside of about Rs 20-25 per cent.” 

Being bullish on the stock, Dalmia said the government’s initiatives related to railways is positive for the stock and suggests investors to Hold with long-term perspective for good returns. 

Similarly, Ravi Singhal, Vice Chairman at GCL Securities said, “IRCTC has reported great results in all parameters. Investors can look to buy the IRCTC stock on dips, keeping a target price of Rs 1,350 per share with one year time frame.” 

“The recent Budget announcement on additional Vande Bharat trains is going to benefit IRCTC share price in long term. At current juncture, technical setup is suggesting a target of Rs 950 per share levels in near term”, Ravi Singh, VP and Head of Research at Share India Securities. 

The stock on Wednesday surged almost 4 per cent to Rs 868.1 per share on the BSE as compared to 0.92 per cent rise in the S&P BSE Sensex. The scrip had touched 52-week high of Rs 1278.6 per share on October 19, 2021.