IRCTC - Monopolistic Business Model - Multibagger Stock Idea
Indian Railway Catering and Tourism Corporation (IRCTC) is a Mini Ratna Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems.
This is a follow-up idea of the original idea posted on May 26, 2021 when the stock was barely giving any movement. That time it was recommended to buy at Rs.1900 levels. Later when the Stock Split was announced by the management since then the stock is good roller coaster ride. Then 3 days back when the stock was banned again from F&O roller coaster ride seems to see an end and not just that it started coming down. Currently the stock is trading at Rs.4500 after correcting from the highest level of Rs.6396, almost 30% correction.
Now the question is what next?
Let's look at some facts and figures:
> Fundamentals are still strong it was 6 months back.
> OPM has increased to 46% in June Qtr as compared to March Qtr of 43%.
> Promoters holding remains unchanged at 67.4% in Sep 2021 Qtr.
> The company is still a debt free company.
> Mumbai- Ahmedabad HSR corridor for bullet train is under construction in full swing.
> Recently the company has started bus booking services.
> More and more old routs which was suspended or were running on lower frequency is coming on track.
> Revenge Tourism can be seen at almost all the tourist attractions.
Considering all other facts the business of the company has got even better as compared to what it was 6 months back. If you were holding it then you should definitely hold it now. We have not sold even a single share of this company after this this 30% fall. If you want to earn multifold return of 300-500% in long term don't be restless when stock corrects to 20-30% in short term.
After the split when the stock price will be much lower than now then will be the time where small investors will jump into the stock and will another good runup in short term.
You can always reach out to me on other platforms in case of any question, I will be glad to answer.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool
This is a follow-up idea of the original idea posted on May 26, 2021 when the stock was barely giving any movement. That time it was recommended to buy at Rs.1900 levels. Later when the Stock Split was announced by the management since then the stock is good roller coaster ride. Then 3 days back when the stock was banned again from F&O roller coaster ride seems to see an end and not just that it started coming down. Currently the stock is trading at Rs.4500 after correcting from the highest level of Rs.6396, almost 30% correction.
Now the question is what next?
Let's look at some facts and figures:
> Fundamentals are still strong it was 6 months back.
> OPM has increased to 46% in June Qtr as compared to March Qtr of 43%.
> Promoters holding remains unchanged at 67.4% in Sep 2021 Qtr.
> The company is still a debt free company.
> Mumbai- Ahmedabad HSR corridor for bullet train is under construction in full swing.
> Recently the company has started bus booking services.
> More and more old routs which was suspended or were running on lower frequency is coming on track.
> Revenge Tourism can be seen at almost all the tourist attractions.
Considering all other facts the business of the company has got even better as compared to what it was 6 months back. If you were holding it then you should definitely hold it now. We have not sold even a single share of this company after this this 30% fall. If you want to earn multifold return of 300-500% in long term don't be restless when stock corrects to 20-30% in short term.
After the split when the stock price will be much lower than now then will be the time where small investors will jump into the stock and will another good runup in short term.
You can always reach out to me on other platforms in case of any question, I will be glad to answer.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool