After a stock market debut at a premium of 103 percent from the issue price in October last year, Indian Railways Catering and Tourism Corporation (IRCTC) shares rose 500 percent since its launch.

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The stock has rallied 30 percent since the announcement of Budget 2020. The stock has climbed 64 percent in the last month, and since February 1, it is up 25 percent. One thing that no one could ever predict about this company was its stock price rally.

Many brokerages remained bullish on the stock prior to its initial public offering (IPO), and the scenario remained much the same post company’s listing as well. However, one aspect that was wrongly forecast by all brokerages was the stock's target price.

For instance, Prabhudas Lilladher in its recent research report recommended ‘buy’ on the stock with a target price of Rs 1,339 apiece. On the contrary, the stock has made a quantum leap in just 3 months and has touched its record high of Rs 1,547.80, 5 of its IPO price of Rs 320.

After Budget 2020, the stock has once again kick-started its momentum on the back of the Competition Commission of India absolving the company’s allegations of unfair market practices.

In November 2018, the regulator ordered a detailed probe into the allegations of abuse of the company’s dominant market position.

It was alleged that the Ministry of Railways and IRCTC charge higher prices than the actual base fare on the sale of e-tickets.

Also, the company’s Board is scheduled to meet on February 12 to consider and approve the financial results of the company for the December-ended quarter and declare an interim dividend, if any.

The firm is also set to start its third private train --Indore-Varanasi Tejas Express, the first Tejas Express -- which will run overnight. At the Union Budget 2020, it was proposed that more Tejas-like trains will be launched in the future.

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First Published:Feb 5, 2020 3:02 PM IST