The company’s board has declared an interim dividend of ₹2 per share each for the financial year 2021-22. The board has fixed Friday, 18 February, as record date for the purpose of payment of interim dividend for the same.
“The steep surge in net profit is mainly led by contribution from all the segments and low base of last year. The company has also declared an interim dividend and the recent Budget announcement on additional Vande Bharat trains is going to benefit IRCTC share price in long term. At current juncture, technical setup is suggesting a target of ₹950 levels in the near term,” said Ravi Singh, VP and Head of Research at Share India Securities.
Its revenue from operations surged 141% to ₹540 crore for the quarter under review as against ₹224 crore in the same period last year.
“IRCTC is consolidating for more than 3 months in the range of 780-920 and I think strong results can help it to gain momentum where it may try to breakout this range in the coming days whereas it also has a tailwind of post covid normalization. If it manages to close above 920 level then we can expect a rally towards the 980-1000 zone however 860 is an immediate hurdle. On the downside, if it slips below 780 then we can expect any weakness,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The state-run company enjoys a strong monopoly as it is the only entity authorised to manage catering services on trains and major static units at railway stations.
“IRCTC has reported great results in all parameters. Investors can look to buy the IRCTC stock on dips, keeping a target price of ₹1,350 with one year time frame,” advised Ravi Singhal, Vice Chairman at GCL Securities.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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