IRCTC May Rally To ₹830 If Momentum Sustains: SEBI RA Deepak Pal

The analyst recommended a ‘buy on dip’ approach with a stop-loss at ₹740

While the Indian Railway Catering & Tourism Corporation (IRCTC) stock is in a corrective phase, it remains structurally intact for further gains, according to SEBI-registered analyst Deepak Pal.

On the weekly chart, IRCTC stock is holding above the 14-day exponential moving average (EMA) and has entered a corrective phase, but is heading towards a potential retest of the 55-day EMA, Pal noted. On the daily chart, it remains within the range of its 55-day and 200-day EMAs.

The weekly chart shows that the stock experienced strong buying momentum last week, recovering sharply from its recent lows.

On June 19, it touched a low of ₹743.40, but quickly bounced back, supported by renewed investor interest. The stock found firm support around its 14-day and 55-day EMAs on the weekly chart. By June 27, the stock had climbed steadily, closing at ₹785.25 after making a weekly high of ₹789.10.

The stock closed at ₹781.70 on Monday.

From a long-term perspective, this setup presents a favourable risk-reward opportunity, Pal noted.  A “buy on dip” approach can be considered with a stop-loss at ₹740.

If the current momentum continues and the broader market remains supportive, the stock could potentially reach the ₹825 - ₹830 range in the near term, representing a 6% upside.

Fundamentally, the company has strong long-term prospects, driven by improving financials and government policies, including passenger fare hikes from July 1. It maintains an ROE of nearly 38–39%, a ROCE of 45%, minimal debt, and ₹650 crore in free cash flow.

The company was recently upgraded to Navratna PSU status, further strengthening its autonomy and long-term growth outlook, the analyst concluded.

Year-to-date (YTD), the stock has shed 0.6%.

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