The wider markets are down and IRCTC share price today has been similarly affected. It is down by Rs 50 or 2.8% at Rs 1700. IRCTC share price has fallen over 3% to Rs 1700 from Rs 1755 over the last week itself. Notably, IIFL Securities has initiated coverage on IRCTC with target price of Rs 2174 and a BUY rating. It added that the company's Capex is set to sharply rise in FY22 and FY23, considering ticketing infra upgrades.

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Technical Analysis on IRCTC Share price:

Chandan Taparia, Derivatives & Technical Analyst, Motilal Oswal says that IRCTC major support is near Rs 1700 zone, with target of Rs 1875 – Rs 1900 level going forward.

Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said that IRCTC has immediate support at Rs 1700 and a bounce is expected till Rs 1800 and above that it can move towards Rs 1870.

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IRCTC is a play on the normalisation of activity post Covid driven by:

1)     accelerated adoption of online ticketing
2)     conversion of unreserved coaches to 2S class
3)     increase in capacity in the PDW (packaged drinking water) segment
4)     resumption of private trains

IRCTC is the offered a monopolistic opportunity in online rail ticketing, sale of Packaged Drinking Water (PDW) and catering services (in Train as well as 600 stations) for Indian Railways. Contrary to most other monopolistic plays, IRCTC assures low pricing and high quality experience for its customer base. The ticketing business operational prowess has been proven as it has achieved massive 73% penetration in FY20 on internet booking (during Pandemic 90%+). Its PDW brand (Rail-Neer) sells water cheaper by 33% compared to other branded alternatives. Catering business exclusivity ensures quality, pricing and availability to travellers.

Prabhudas Lilladher says that if the current trend continues then the total number of tickets booked online in Q4 FY21 can well exceed the figure registered in Q4 FY20:  

1)     accelerated adoption of online ticketing
2)     conversion of unreserved coaches to 2S class
3)     increase in capacity in the PDW (packaged drinking water) segment
4)     resumption of private trains