Indian Railway Catering and Tourism Corporation (IRCTC) has experienced significant volatility in its stock performance over the past few years. Here's an overview of its recent performance and what analysts are saying about its outlook:
- Stock Performance: IRCTC's stock has shown remarkable growth over the last three years, doubling investor wealth. It surged 139% from August 13, 2020, to an intraday high of Rs 662.65. However, its performance over the last two years has been mixed, with a 22% rise and a subsequent 2.48% loss in the last year. The stock has had a modest gain of 1.21% in the current year.
- Current Trading: In the current trading session, IRCTC shares were down by 1.86% at Rs 650.30 on BSE. The stock opened at Rs 662.65, touching its high point of the day, and later slipped to Rs 638.70.
- Technical Indicators: The relative strength index (RSI) of IRCTC stands at 64.7, indicating that it's trading neither in the oversold nor overbought territory. The stock's one-year beta is 0.9, suggesting low volatility. It's trading above the 10-day, 20-day, 50-day, 100-day, and 200-day moving averages, but below the 5-day moving average.
- Analyst Outlook: Analysts have expressed various opinions on the outlook for IRCTC's stock post its Q1 earnings:
- Aditya Gaggar, Director of Progressive Shares, sees the stock hitting the long-term target of Rs 1010. He points out breakout formations in technical patterns that indicate potential upside.
- Gaurav Bissa, VP of InCred Equities, notes that the stock has witnessed a bullish triangle breakout on weekly charts and suggests that it might reach Rs 750 with a close above Rs 670.
- Abhijeet from Tips2trades believes that IRCTC is bullish on daily charts and might target Rs 708 with a close above Rs 673.
- Jinesh Joshi, a Research Analyst at Prabhudas Lilladher, has maintained a hold rating with a target price of Rs 700. He highlights the company's growth prospects in areas like catering and rail neer expansion.
- Q1 Earnings: IRCTC reported its Q1 earnings on August 9, 2023. It posted a 5.42% decline in profit compared to the same quarter of the previous year. Revenue increased 17.4% YoY, with the catering segment showing a notable 35% growth. However, revenue from the internet ticketing business fell 4%, while revenue from the tourism business saw a significant 58% rise.
In conclusion, IRCTC's stock has shown a mix of strong growth and periodic volatility. Analysts have varying opinions on its outlook, citing technical patterns and growth prospects in different segments of the company's operations.