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The IRCTC stock, which was the talk of the town after listing in September 2019, is down 10 percent year-to-date. However, it is still approximately trading at 11 times its listing price. So, what have been the roadblocks for the stock which boasts of a monopoly in ticket booking, catering services and mineral water (RailNeer) supply on Indian Railways?

In a conversation with CNBC-TV18, Harshit Kapadia of Elara Capital reckoned that though IRCTC did come with a lot of promise, it saw uncertainty with fee-sharing development and that spooked markets.

"That was one of the errors by the Ministry of Railways. Possibly after that investors were sceptical about whether such kind of news can again come and can hamper the business model of the company," he said.

However, market veteran Ramesh Damani speaking to CNBC-TV18 had earlier said that he betting big on railway public sector (PSU) stocks.

“You look at a basket of railway PSUs, these are the blunt instruments that the government is going to use in order to expand their capital expenditure in the next few years. So I think there's a great opportunity in those stocks,” he had reasoned.

He listed some stocks such as Railtel, RVNL, RITES, and IRFC and advised investors to at least go through and study them. As a disclaimer, however, Ramesh Damani had said that these should not be taken as stock recommendations.

Read Here: Bharti Airtel Earnings Preview: Can ARPU offset slow subscriber addition?

Meanwhile, speaking about his other stock picks Kapadia said he liked RITES limited, as well as RVNL.

"Also, Ircon International is something that we like so these are the three EPC companies that we are very positive about as far as rail infrastructure capex is concerned,” he said.

Watch the video for more.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

First Published:Oct 31, 2022 11:56 AM IST