Expert Analysis: IRCTC Share Price Target and Market Performance

The share price of IRCTC, the Indian Railways catering and ticketing arm, has been under pressure recently due to concerns over food quality and hygiene in pantry cars operated by the company. On Tuesday, June 25, 2024, the share price opened lower on the Bombay Stock Exchange (BSE) and continued to decline throughout the day.

In light of these developments, stock market expert Arun Mantri, founder of Mantri Finmart, has provided some insights into the current situation. According to Mantri, the overall chart of IRCTC still looks good, with support levels around Rs 970-980 and resistance levels at Rs 1080-1090 in the near term. He also mentioned that the stock’s structure appears favorable for a medium-term perspective.

Looking at the recent performance of IRCTC’s share price, it has dropped almost two percent in the past five days and nine percent in the past month. However, over the past six months, the stock has seen a 15 percent increase, and over the past year, it has surged by 58 percent.

The Railway Minister’s recent directive to improve food quality and hygiene in pantry cars operated by IRCTC has added to the pressure on the company’s share price. The Minister has instructed officials to upgrade kitchens at 1,000 locations and clean pantry cars within the next six months. These actions come in response to viral videos showing poor hygiene practices and reports of substandard food in trains operated by IRCTC.

Investors are closely monitoring the developments surrounding IRCTC and seeking expert advice on the stock’s performance. With the company facing challenges in the short term, it remains to be seen how it will navigate these issues and regain investor confidence in the long run.