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.
Can u say the pre split up price only few days left. What will be the post split up rally?
ShareMarketSchool
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@meenasridhar2018, No one in the market can predict the tomorrow's price forget about 5-10 days from now. If someone is doing that, he is either fooling himself or all others. As far as post split rally is concerned, it has been observed in the past that, just after the split stock comes down a little in short term and then gives a good 20-30% runup because of huge liquidity when mass investors and traders jump in the stock. Please focus on long term wealth creation, don't try to time the market.
Hi @ravi_gupta, SRF is a specialty chemical focused, multi-business company with strong fundamentals. It is domestic market leader in the refrigerants space. The company has a global presence with operations in 4 countries and presence in 90+ countries across the world. Robust top and bottom line. Borrowings are there in the balance sheet but that is well within the limits, less than half of the cash reserves. Chemical sector is in good momentum so keep holding. You can also switch half of the money in Clean Science. Thanks!
mrika2009
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Someone at ET is talking about last phase of Dow Theory. But your review on the stock is what I was looking to read apart from the narrated facts/strengths. Now the retailers has the major stack next to promoters. How we access the RISK/REWARD. (I will be holding it till the Split & even after.)
ShareMarketSchool
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@mrika2009, We are holding the stock from 1400 levels, when no one was buying the company, that is how we look at the Risk-Reward ratio. But now a days lot of things are going around in the company. Will keep holding for now and see how the things play out. Also today is the result day for the company, let's see what happens.
mrika2009
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@ShareMarketSchool, Yep....... fingers Crossed. Lets see how it reacts in 2022. It will be 60 days older by than if Rly Ministry sticks to their last announcement at least for a couple of quarters.
ShareMarketSchool
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@mrika2009, Considering the situations and market sentiments they will have to stick on this otherwise public will out all their money from not just IRCTC but all PSUs and Govt is not gonna take this risk especially when LIC IPO is on head.