Indian Railways & Tourism Corporation Ltd (IRCTC) jumped 10% in intraday on Thursday to a new lifetime high on Bombay Stock Exchange. This jump came after the ticketing arm of Indian Railways reported a sharp jump of 179% in its net profit at Rs 205.80 crore on Wednesday for the third quarter ended December 31, 2019, helped by broad-based growth across all sectors. The Miniratna company had posted a net profit of Rs 73.59 crore in the same quarter last year. On a sequential basis, profit grew 106.17% from Rs 99.82 crore in the September quarter of this fiscal.
The IRCTC stock price opened with a gain of 11.7% today and rose to an intraday high as well as a new lifetime high of Rs 1,596.95, as against the previous day's close of Rs 1,418.95. The stock has crossed its earlier 52-week high of Rs 1,562, that it hit on February 6, 2020.
Ahead of Q3 earnings, shares of IRCTC closed Wednesday's trade at Rs 1,418.95 apiece, up 0.91%, on the BSE.
IRCTC stock price is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock has risen 4% in one week, 66% in a month and 67% year-to-date. It has also outperformed Travel 'Support Services' sector by 8.58%. The sector has risen 0.51% intraday. Volume-wise, 3.32 lakh and 57 lakh shares are trading on BSE and NSE counters, both above 5, 10, 30-day average. Market depth data suggests that 93% bidders are buying and only 7% of sellers are offering the stock.
During the October-December quarter, IRCTC's total revenue surged 61.91% to Rs 734.98 crore compared to Rs 453.91 crore in the year-ago period. IRCTC's board has also declared an interim dividend of Rs 10 per share, which is 100% of paid-up share capital. The board has fixed February 25, 2020, as the record date for the purpose of payment of dividend.
This was the second earnings announcement by the IRCTC after its listing on Indian bourses on October 14, 2019. On October 14, 2019, IRCTC share price was listed on BSE and NSE. IRCTC's new lifetime high of Rs 1596.95 is almost 399% higher from its issue price of Rs 320 and 147% higher from its listing price of Rs 644.
For the half-year period ended September 30, 2019, IRCTC had reported a 14% year-on-year (YoY) rise in the net profit at Rs 172.16 crore. Net revenue from operations grew 3.77 per cent to Rs 972.61 crore as against Rs 937.25 crore in the first half of the last fiscal.
Prabhudas Lilladher in its recent report post-budget included IRCTC stock in its top picks on back of its strong growth visibility and above-market growth rates. Being a regulated monopoly acts a strong moat and provides a huge sustainable competitive advantage over the competition," said Prabhudas Lilladher in its research report and rated 'BUY' with 15% upside to IRCTC stock at the current market price (CMP) of Rs 1,004, with a target price (TP) of Rs 1,339.