IRCTC shares hit upper circuit on e-booking nod for some trains

Mumbai: Shares of Indian Railway Catering & Tourism Corporation (IRCTC) were locked in 5% upper circuit on Monday after the government announced online booking for passenger trains. Indian Railways is set to resume a limited number of passenger trains from May 12 after a nearly 50-day gap.

The stock which rallied 60% from its lows in March ended at ₹1,302.85 on Monday. After hitting a high of ₹1,995 on February 25, the stock corrected nearly 61% to hit a low of ₹774.85 on March 26 mainly due to Covid-19 lockdown.

The government on Sunday said that the railways will start operations with 15 trains from Tuesday. The booking for these trains will be available only on IRCTC website.


While ticketing business contributed 13% of the total revenue for IRCTC in FY19, catering business and tourism contributed 55% and 24%, respectively. Rest of the business comes from Rail Neer.

The lockdown and loss of business had not affected the company in a big way as IRCTC is debt-free company with cash balance of ₹1,160 crore as of December 2019.