IRCTC shares get a Rail Neer boost; what is driving the stock higher?

IRCTC share price today, IRCTC Rail Neer new project: Indian Railway Catering and Tourism Corporation (IRCTC) shares rose on Monday, February 19, after the state-run rail ticketing and catering services provider began commercial production at a public–public-private-partnership -modelled plant for a Rail Neer packaged drinking water plant in Vishakhapatnam, Andhra Pradesh. IRCTC shares rose as much as 1.7 per cent to Rs 956.8 apiece in early deals on NSE. The stock settled at Rs 947.4, up by Rs 6.75 or 0.72 per cent on NSE.

The production capacity of this state-of-the-art plant is 72,000 litres per day, where water is processed, purified, and bottled, according to a regulatory filing, dated February 16.

"The distribution of Rail Neer manufactured at Rail Neer Plant, Vishakhapatnam is likely to start in a phased manner to Railway Station at Anakapalle, Duvvada, Visakhapatnam, Tuni, Vizianagaram, Annavaram, Samalkot, Srikakulam, Kakinada, Rajahmundry, Palasa, Rayagada, Brahmapur etc.," the filing noted.

According to IRCTC, with the commencement of plant at Vishakhapatnam, the total production capacity of Rail Neer has increased to 17.68 lakh litres per day.

The Rail Neer unit contributes about 7.5 per cent to IRCTC's total revenue.

IRCTC share price history

IRCTC's stock has given a positive return of nearly 50 per cent in the last 12 months (from February 20 2023). In comparison, the headline index Nifty 50 has rallied nearly 24 per cent.

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