IRCTC shares: After strong third quarter results, experts see a big rally. should you buy

 

Indian Railway Catering and Tourism Corporation or IRCTC share price ended higher on Thursday following strong Q3 results for the October to December 2022 quarter. In Q3FY23, IRCTC's revenue grew by 69.90 per cent in year-on-year (YoY) terms, while EBIDTA of all segments of IRCTC was reported in positive territory. According to stock market experts, IRCTC shares are expected to come out of base building mode and may go up to ₹750 per share in the medium term.

On what the chart pattern of IRCTC shares suggests after strong Q3 results, Sumeet Bagadia, Executive Director, Choice Broking said, “IRCTC shares have immediate support in the range of ₹635 to ₹630, Whereas in case of bounce back it may go up to higher levels of ₹680 per share. On crossing the level of ₹680, IRCTC share price can climb up to ₹710 per share.

Advising positional investors to hold on for the long term, Ganesh Dongre, Senior Manager - Technical Research, Anand Rathi said, "On the daily chart pattern, IRCTC stock has formed a double bottom formation indicating a two sided trade However, one should go with a positive from sideways bias and maintain the strategy of buying on dips while maintaining the stop loss at ₹605 per level. The stock may move towards ₹690 per level in next one to two months. However, IRCTC sc is expected to move towards ₹720 and ₹750 per level in medium to long term perspective."

Highlighting the findings from IRCTC Q3 Results 2023, Jinesh Joshi, Research Analyst, Prabhudas Lilladher said, "IRCTC revenue grew 69.9% YoY to Rs 9,181 million against our estimate of Rs 8,791 million. All segments with internet ticketing reporting Were EBITA positive. EBITDA margin of 84.2%."

Prabhudas Lilladher expert further said that IRCTC's PAT grew 22.4% YoY to ₹2,555mn as against 51.7% in 3QFY22. He advised the shareholders of IRCTC to counter hold.

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IRCTC on Thursday reported a consolidated net profit of ₹256 crore for the October to December 2022 quarter (Q3FY23), up 22.8 per cent from ₹208 crore reported in Q3FY22. IRCTC also declared an interim dividend of ₹3.50 per equity share, which is 175 per cent of the paid-up share capital of the company.