Business

IRCTC stock split: Stock up 17 per cent

Highlights:

  • IRCTC shares have seen huge volatility in the last two weeks
  • Stock corrects over 30 percent after hitting all-time high
  • The stock split in the ratio of 1:5, seeing the strong rally from this morning

AHMEDABAD: Shares of IRCTC, which have been in the news for the last few days in the city, gained more than 17 per cent today. The stock was split in the ratio of 1:5 today. On Thursday, at 11.50 am, the stock was trading at Rs 970 with a bumper gain of 17.45 per cent. It was at Rs 813 when the market opened. However, the rally continued on the back of strong buying and was the biggest jump in two weeks.

Today the stock market is showing weakness on one side. Sensex is trading down more than 400 points. However, this has not affected the shares of IRCTC. The company will also release the September quarter figures soon. The stock has gained 250 per cent in the last one year. The Sensex has gained 52 per cent during this period.

IRCTC shares, which were listed in October 2019, have given returns of 1,400 per cent to investors in just two years so far. Looking at the post-split price, the stock hit an all-time high of Rs 1,278 last week but is currently trading 23 per cent below the all-time high.

Can new purchases sometimes be made?

Some investors are considering buying shares of IRCTC, which has seen a major correction recently. Although some experts believe that this stock is good but still expensive. Speaking to our partner business channel ET Now, Sudip Bandhopadhyay, Group Chairman, Inditrade said, “IRCTC is a very good company, it is in good business and the company is reaping maximum profits as the situation normalises after Corona. “

On IRCTC shares, he said at the moment he is not particularly comfortable with the price at which the shares are available. Currently, the stock has seen a significant correction, and has seen a slight correction since then. But now is not the right time to buy these shares. Expressing his opinion, he said that even after the stake of IRCTC is still less than 20 percent, it can be considered to buy it.

What is share split?

Share split means its division in simple language. When IRCTC shares were listed, its face value was Rs. However, after being divided in the ratio 1:5, its marked price increased to Rs. If a person has 10 shares, the number of shares will now increase to 50. But its price will also be calculated accordingly and also the face value. Typically when a stock becomes too expensive it outweighs the purchasing power of the average investor. Companies often split shares to keep them short.

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