Indian Railway Catering and Tourism Corporation (IRCTC) share price is locked at daily upper limit of 5% at Rs 1,303 on NSE ahead of the resumption of online ticketing services.
The Indian Railways has announced its decision of gradually starting passenger train operations from May 12, initially, with 15 pairs of trains (30 return journeys).
The booking for reservation in these trains will start from May 11 at 4 pm.
These special trains called “Shramik for migrant and stranded labourers/workers will run from New Delhi station connecting Dibrugarh, Agartala, Howrah, Patna, Bilaspur, Ranchi, Bhubaneswar, Secunderabad, Bengaluru, Chennai, Thiruvananthapuram, Madgaon, Mumbai Central, Ahmedabad and Jammu Tawi.
While ticket booking counters at the railway stations will remain closed, no counter tickets (including platform tickets) will be issued, the Indian Railway official communique said.
Only passengers with valid confirmed tickets will be allowed to enter the railway stations.
The railways had shut services after a national lockdown was announced following the outbreak of coronavirus in the country.
Since hitting a low of Rs 815.6 on March 25, the IRCTC stock has recovered by more than 55%, signaling a V-shaped recovery.
Due to the lockdown, IRCTC has lost ticketing, catering and Rail Neer (water) revenue for 46 days, which is the total period of lockdown.
As a result, IRCTC is expected to lose ticketing revenue by Rs 50 crore. Revenue from the catering and Rail Neer biz is likely to be hit by 18.3% and 8.8% respectively for the financial year 2020-21.
The resumption of railway operations augurs well for IRCTC. At current price it offers a good entry point for the long term investor.
IRCTC’s market capitalisation stood at Rs 20845.6 crore on May 11.
The company reported consolidated sales of Rs 716 crore for the quarter ended 31-Dec-2019, up 39.47% from previous quarter’s Rs513 crore and up 64.59% from the year-ago quarter’s Rs 435 crore.