After hitting a record high in early trades, shares of Indian Railway Catering and Tourism Corporation (IRCTC) saw a dramatic drop of 1,400 per cent to close to 4,995 per share in Tuesday’s trading session.
Indian Railway Catering and Tourism Corporation (IRCTC) plunged 1,400 per cent in Tuesday’s trading session to settle at 4,995 per share. The stock ended the day at $5,363 per share, down more than 8%. IRCTC shares hit a new high of $6,393, up more than 7%, with the company’s market capitalization topping $1 trillion in early trading.
Today’s broader markets were likewise incredibly turbulent. The Sensex fell 49 points after peaking at 62,000 in the early session. In the midcap and smallcap space, there was a lot of profit booking. “After the shift observed in today’s trade, investors should be cautious at these levels, particularly in midcaps and small caps counters.
“It is recommended that investors maintain a strong stop-loss on their positions. Railway equities were also under pressure at the end of the day after the news of the appointment of a railway regulator. IRCTC had lost 15% of its value. Today, there was a lot of profit-booking in power stocks,” says Rahul Sharma, co-founder of Equity99.
About IRCTC (Indian Railway Catering and Tourism Corporation:
The Indian Railways Catering and Tourism Corporation (IRCTC) was founded on September 27, 1999, as a public sector business wholly owned by the Indian Railways. It is the only company authorized to provide services to the Indian Railways, such as online ticketing, catering, and selling drinking water aboard trains and at stops. It was classified as a Mini-Ratna public corporation in May 2008, which gave it some financial autonomy.
IRCTC (Indian Railway Catering and Tourism Corporation) is owned by Indian Railways, the Ministry of Railways, Government of India that offers services like ticketing, catering, and tourism to the Indian Railways.
It was initially wholly owned by the Government of India and operated under the administrative control of the Ministry of Railways. Still, since 2019, it has been listed on the National Stock Exchange, with the Government maintaining a majority stake.
In 2019, the IRCTC was floated on the National Stock Exchange, reducing India’s holding to 87 per cent and allowing the remaining shares to be traded publicly. The Government of India relinquished another 20% in December 2020, bringing its total stake in the IRCTC to 67 per cent.
Services provided by IRCTC (Indian Railway Catering and Tourism Corporation:
Online Tickets:
Through its website and via WiFi, GPRS, or SMS on mobile phones, the company pioneered internet-based rail ticket booking. It also has an SMS feature for checking PNR status and Live Train Status. Apart from e-tickets, the Indian Railways Catering and Tourism Corporation also offers I-tickets, similar to regular tickets but ordered online and sent by mail.
The PNR status of the keys is also made available. Season tickets for commuters on the suburban rail can also be purchased through the website. It has also developed a loyalty programme for frequent travellers called Shubh Yatra. Passengers can get savings on all tickets booked during the year by paying an annual fee up ahead.
It launched the Rolling Deposit Scheme to make it easier to book e-tickets (RDS). RDS is an e-ticketing system that allows passengers to reserve seats using money held in advance by the company. It has also expanded its online reservation services to include flight and hotel bookings. TCS is in charge of the website, and TCS is also in order of Indian passports.
The organization implemented an innovative card system for travellers travelling on unreserved train tickets on August 11, 2021. These cards can be purchased in railway stations and can assist passengers in skipping long lines, and they can also be recharged online.
Scheme of Tatkal:
Passengers who plan their journey on short notice can book tickets in practically all Mail/Express trains using the Indian Railways’ internet portal under the Tatkal scheme. Reservations for AC coaches begin at 10:00 a.m. every day, and non-AC coach reservations begin at 11:00 a.m., one day before the train departs from the source station.
Tatkal E-tickets can be purchased for specified trains one day ahead of time, omitting the date of departure from the train station. It can be booked starting at 10:00 a.m. for AC coaches and 11:00 a.m. for non-AC coaches on the first day of operation.
Hospitality and catering:
Inside long or medium-distance trains, the IRCTC introduced pantry cars that served passengers freshly cooked food. On all trains managed by the Indian Railways, the IRCTC has exclusive rights for onboard catering of food. At several railway stations, it also runs food plazas, Jan Aahar cafeterias, and refreshment rooms.
IRCTC began offering e-catering services in 2014, allowing passengers to purchase food from partner restaurants online or over the phone and have it delivered to their seats. In collaboration with commercial organizations, the IRCTC also manages air-conditioned waiting lounges, retiring rooms, and inexpensive motels at crucial railway stations.
IRCTC also owns the “Rail Neer” bottled water brand, offered on trains and at railway stops.
Tourism:
Train for luxury tourists Maharajas’ Express is a train service operated by the Maharajas for domestic and international tourists, the Indian Railways Catering and Tourism Corporation organizes budget and deluxe package tours.
“Bharat Darshan” is a popular tourism package for budget travellers that covers significant tourist destinations around India. There are also luxury vacation packages available that include unique luxury trains such as the Buddhist Circuit Train and Maharajas’ Express.
The stock was trading up for the seventh trading day in a row, having gained 37% in that time. IRCTC’s stock is presently trading 1,071% higher than its issue price of Rs 320 per share, thanks to a strong surge. On October 14, 2019, IRCTC made its stock market debut.
The stock has increased by 114% in the last four months, compared to a 19.6% increase in the S&P BSE Sensex. It has risen by 190 per cent after hitting a 52-week low of Rs 1,291 on November 4, 2020. According to BSE data, IRCTC is now ranked 82nd in terms of overall market capitalization.
