IRCTC hits a 52-week high as railway PSU eyes expansion in non-railway catering business —should you buy?

IRCTC share price today NSE, IRCTC share price target, IRCTC non railways catering services: Indian Railway Catering and Tourism Corporation (IRCTC) shares soared on Thursday, December 14, after the railways entity informed the exchanges that it was eyeing major expansion in non-railway catering business across the country.

The stock of state-run IRCTC, the only firm authorised by Indian Railways to manage food services onboard trains and booking online tickets, rose by as much as Rs 22, or 2.8 per cent, to hit its fresh 52-week high of Rs 799.95 apiece during the morning trading session on NSE, surpassing its earlier peak of Rs 786.4 clocked on December 12. IRCTC shares closed at Rs 792, up 1.81 per cent, or Rs 14.05, on NSE.

IRCTC share price target: Should you buy?

Himanshu Gupta of Globe Capital Markets recommends buying IRCTC shares for targets of Rs 805, Rs 830, and Rs 850 with a stop loss at Rs 765 in the special segment 'Pick of the Day'.

Moreover, according to Zee Business analysts, 20 per cent growth is expected in the catering business, and catering accounted for 43 per cent of IRCTC's total revenue in Q2.

IRCTC future plans: Here are the highlights:

• IRCTC to proliferate in areas of business beyond Railways.
• At present, IRCTC is managing catering services for various Ministries, Government Departments, Autonomous Bodies, including Judiciary and Universities.
• The company has already signed MoUs with various government and autonomous bodies.
• 15 more catering units across the country in the near future.
• The company aims to become the premier brand of hospitality and catering in the country.

IRCTC shares have gained over 20 per cent so far this year. 

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