IRCTC stock jumps over 2.5% as Railway Board grants approval for seven-year tenders
₹719.90 apiece. This boost followed the Ministry of Railways (Railway Board) granting approval to the company to engage in long-term tenders spanning 7 years (comprising an initial term of 5 years with the potential for an additional 2 years based on satisfactory performance) through clustering of trains.
However, in a regulatory filing made on Monday, IRCTC stated that it has been advised by the Ministry of Railways not to proceed with the initially proposed long-term tenders (5+5 years) for catering on trains for smooth implementation of YSA policy for providing passenger services on trains. Also Read: Stocks to buy: Hindustan Aeronautics, Bharat Dynamics among top defence stock picks by Choice Broking IRCTC is the only entity authorised by the Indian government to provide online railway tickets, catering services to railways, and packaged drinking water at railway stations and trains in India.
The company has expanded its services over the years to include a wide range of tourism and hospitality offerings, such as luxury train tours, hotel bookings, and holiday packages. Also Read: Suzlon Energy share price hits 5% lower circuit; time to book profit? The stock made a strong debut on October 14, 2019, as it was listed at a premium of 127.7% at ₹728.6 apiece over the IPO price of ₹320.
The stock has been trading on an ex-split basis with a 1:5 ratio since October 29, 2021. Over the last six-month period, the stock has delivered a return of 16%.
Looking at the long-term performance, the stock generated a fabulous return of 156% in the last three years, and it is up by 1006% in the last five-year period. Also Read: BSE MidCap and SmallCap hit fresh record highs, gain up to 38% in CY23 so far In Q2FY24, the company
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