IRCTC Shares Jump 7% After Getting Catering Rights For Full-Tariff Coaches, Trains
If booking a full train on FTR includes a pantry coach, the booking party may avail catering from IRCTC or use the pantry car.
Shares of Indian Railway Catering & Tourism Corp. rose over 7% after the Ministry of Railways authorised it to cater on full-tariff coaches or trains.
"Party will book catering facilities in such special coaches/trains etc. through IRCTC only, except for booking of FTR trains along with pantry car," according to an exchange filing.
In the case of booking a full train on FTR, including a pantry car coach, the booking party may either avail the catering facilities through IRCTC or provide the catering facilities using the pantry, it said.
Shares of IRCTC were trading 2.59% higher at Rs 725.55 apiece, compared with a 0.52% advance in the benchmark NSE Nifty 50 as of 3:17 p.m. The stock surged 7.18% intraday to Rs 758 apiece, the highest since Nov. 10.
The stock has risen 3.89% on a year-to-date basis. The total traded volume so far in the day stood at 5.4 times its 30-day average. The relative strength index was at 79, implying that the stock may be overbought.
Out of the seven analysts tracking IRCTC, three maintain a 'buy' rating on the stock, one suggests a 'hold', and three recommend a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 17.7%.
