IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy

IRCTC Share Price Outlook: The Indian Railway Catering and Tourism Corporation (IRCTC) share price has delivered around 27 per cent returns in the last one month to its shareholders. Zee Business Managing Editor Anil Singhvi has been batting heavily in favour of this Indian Railways PSU stock tagging it as one of the 'shares to buy' as it will rally immediately on the trigger of Indian Railways operations coming back to 100 per cent level after corona pandemic lockdown. After the success of COVID-19 vaccine in India, IRCTC share price target has been getting revised by various stock market experts and that includes Market Guru Anil Singhvi too. Singhvi has given Rs 2500 IRCTC share price target as company's fundamentals are quite strong and it has monopoly business in e-ticketing.

Speaking on the major reason for buying IRCTC shares, Anil Singhvi said, "IRCTC has almost monopoly business in internet railway ticket booking. It covers around 92 per cent of the online Indian Railways e-ticket booking business and that reflects about the kind of business it would be getting. Apart from online Train Ticket booking business it has received higher advertisement revenue as well. Its advertisement revenue margins have gone up from 6 per cent to near 10 per cent, which is praiseworthy in such a challenging time."

WATCH | Click on Zee Business Live TV Streaming Below:

The Market Guru went on to add that IRCTC is trying to diversify its business as well. Its ready-to-eat food service business has gone northward, its private train operations plans are highly bullish too as there would be 10-12 new private trains that will be launched in the coming years.

WATCH | Full coverage in Zee Business video below:

रेलवे टिकटों की जोरदार बुकिंग

जानिए IRCTC की सुपरफास्ट तेजी के क्या हैं ट्रिगर्स #IRCTC @VarunDubey85 pic.twitter.com/uRRTsH6M8B

— Zee Business (@ZeeBusiness) March 5, 2021

"Apart from this, the company has allocated Rs 200 crore for its capacity building in the hotel business. IRCTC plans to develop 4-5 budget hotels to diversify its tourism business model. This is because its budget hotel traction has registered near 15 per cent growth," concluded Anil Singhvi.