IRCTC Share Short Term Target
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) was incorporated on 27 th September 1999 that manages catering and hospitality services at stations, on trains. IRCTC Ltd was listed on the stock exchanges on 14 October 2019 at 644, a premium of 101.25% to the IPO price of 320.
Performance-wise the company has delivered an ROE of 44.07% and ROCE of 62.75%. Valuation wise the company trades at a TTMP/E of 49.55% and a TTMEPS of 26.98 which seems to be expensive but given the monopoly, the company commands it seems to be the fair price.
As of March 2020, the company had zero debt and cash of around 1293 crores in its books. The share which has corrected significantly from its 52 weeks high of 1994 was trading at around 1350 levels as of 14-10-2020.
With the overhang of the OFS which the Government of India plans to bring to offload its present stake of 87.40% of the company the stock is under pressure. Currently, irctc is trading near its support levels, Support Level-1 Rs.1330 and Support Level-2 Rs.1322. If it breaches the support levels then more corrections on IRCTC share price can be seen. For swing trade and short term positional trade we expect a target of Rs.1375.