IRCTC Share Price: Is this stock set for Breakout? Check what experts say

IRCTC Share Price: The Indian Railway Catering and Tourism Corporation (IRCTC) share price has hit its lifetime high of Rs 2,073 and after that the IRCTC shares have managed to sustain above the psychological Rs 2,000 levels. This has given fresh hope among the bulls who are looking at this Indian Railways PSU stocks as an avenue for making money from the stock market. While various broking firms have started to upgrade their IRCTC targets, some technical analysts are starting to find out the new targets after this new breakout made by the IRCTC share price.

Speaking on the IRCTC share price rally in the last one and half months; Saurabh Jain, AVP — Research at S&P said, "IRCTC share price has been skyrocketing for the last three months. The major reason for this rise in IRCTC shares is its OFS (Offer FOr Sale) that came in December 2020. After the IRCTC OFS, FIIs shareholding in the company rose to 8.75 per cent from 1.13 while institutions shareholding rose to 7.67 per cent from 1.66 per cent."

Expected breakout in the IRCTC shares on Indian Railways operations coming back to its 100 strength Avinash Gorakshkar, Head of Research at Profitmart Securities said, "IRCTC share price has hit its life-time high on the news buzz that Indian Railways operations will be back to its natural 100 per cent strength in next few months. This buzz got a further boost after the success rate of the COVID-19 vaccination drive. As the IRCTC has almost monopoly in e-ticketing business and they have around 50-60 profit margin in online Indian Railways ticket booking business. IRCTC share price is bound to appreciate on such news buzz. Currently, Indian Railways operations is around 25 per cent of its strength and once it achieves its 100 operational strength, the IRCTC business is bound to grow exponentially."

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On IRCTC shares making breakout and sustaining above Rs 2,000 levels Gorakshkar said that in the short-term one can expect IRCTC share price target of Rs 2,200.