IRCTC rallies 19% intraday on BSE as counter turns ex-split - buy or avoid? Analyst spells strategy
Ex-stock split refers to subdivision of the face value of equity shares, though the underlying value remains intact. The decision on division of shares was taken by the board of IRCTC on 12 August 2021. The record date of IRCTC shares is 29 October
The share of Indian Railway Catering and Tourism Corporation (IRCTC) ended up by over Rs 87 on the BSE on Thursday and was trading at Rs 913.75 at the closing time. The stock rallied stronglly today after the counter turned into an ex-stock split in the ratio of 1:5.
Ex-stock split refers to subdivision of the face value of equity shares, though the underlying value remains intact. The decision on division of shares was taken by the board of IRCTC on 12 August 2021. The record date of IRCTC shares is 29 October.
On the intraday basis, it achieved a high of Rs 983.60, gaining as much as Rs 157 or over 19 per cent from the previous closing price.
Technical analyst Nilesh Jain the ex-stock split has brought this scrip to a comfortable level as the valuations of Rs 6393 per equity share were significantly high. Even at these levels, the valuations are slightly up and not conducive to make fresh positions.
Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking advises buy on decline. He said that the stock has a strong support at Rs 800 and is well poised to achieve a target of Rs 1000 and Rs 1050. This is a 10-15-day view, the AVP said.
The existing investors must hold this stock he said, adding that the rally is likely to continue.
The 52-week high of this stock is Rs 1278.60 (Rs 6393/5) which it hit on 19 October while the 52-week low is Rs 258.20 (1291/5).
IRCTC will be announcing its July-September quarter results on 1 November.
Meanwhile, on the NSE, this stock was trading at Rs 923.85 at the end of today's session, up almost 12 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.