The Indian Railway Catering and Tourism Corporation (IRCTC) has witnessed significant upside movement in the past week. After hitting a low of ₹663 per share in September 2023, IRCTC’s stock price experienced a fresh breakout at ₹675 and has since remained above ₹700 per share. Market experts anticipate that IRCTC’s share price may continue its upward trajectory, potentially reaching ₹850 per share in the short term, thanks to the ICC World Cup 2023, which is expected to provide a boost to this Indian Railways’ PSU company.
The ICC World Cup 2023 is scheduled to run until November 19, 2023. Experts attribute last month’s surge in IRCTC shares to the anticipation of increased business volume during the cricket World Cup, which commenced on October 5, 2023.
Analysts believe that the ICC World Cup 2023 will stimulate sports tourism in India, as cricket enthusiasts from around the world will follow their favorite teams’ schedules. This is expected to benefit tour and travel companies, hotels, and eateries. With IRCTC offering budget hotels and booking services for various modes of transportation on its website, cricket fans are likely to flock to the platform for accommodations, food, flights, and other travel services.
Market experts advise investors to consider any dips in IRCTC’s share price during the ICC World Cup 2023 as buying opportunities, as the stock may potentially reach ₹850 per share in the short term.
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained, “ICC World Cup 2023 is expected to fuel bookings for hotels, flights, trains, buses, etc., during the cricket World Cup, as sports tourism is projected to surge during this cricket tournament. Sensing the business opportunity in this sports event, IRCTC has already announced zero convenience fees on flight bookings through its website. In addition, IRCTC has recently partnered with budget hotels, eateries, and other QSR companies, which are expected to see increased business during the ICC World Cup 2023 tournament. Therefore, the recent surge in IRCTC shares can be attributed to the start of the ICC World Cup 2023, along with the incentives announced by the company for flight and other bookings.”
Sumeet Bagadia, Executive Director at Choice Broking, added, “IRCTC shares exhibit a positive chart pattern and face resistance at ₹750 levels. Once this resistance is breached on a closing basis, we can anticipate IRCTC’s share price to rise to ₹825 to ₹850 per share in the short term.”