IRCTC soars to 52-week high as non-railway catering expansion plans Ignite Investor confidence in thursday's trading session
IRCTC witnessed a significant increase in its stock price, reaching a new 52-week high during the Thursday morning trading session. This surge followed the announcement by the Public Sector Undertaking (PSU) about its plans for expansion into the non-railway catering sector across the nation.
In a filing submitted to stock exchanges on Wednesday, IRCTC conveyed its plans for the expansion of the hospitality and tourism arm of Indian Railways. The company stated its intention to extend its presence beyond railway services, aiming to promote its brand and business throughout the nation.
"To proliferate in the areas of business beyond Railways for promoting its brand and business across the nation," IRCTC said in a statement. The company oversees catering services for a range of entities, encompassing ministries, government departments, and autonomous bodies.
At 11:20 am, the shares of the PSU were trading at Rs 790 price level, up by 12 points on the National Stock Exchange.
IRCTC has already established its hospitality outlets in nine of these organizations, including the Department of Telecommunications in New Delhi, Calcutta High Court, UP Secretariat in Lucknow, among others. With ambitious intentions to expand its footprint in the catering business and customizing its services to meet client needs, IRCTC has entered into Memorandum of Understanding (MoUs) with various government and autonomous bodies.
"The company is in the active phase of commissioning 15 more catering units across the country in the near future", the statement further added.
On a year-to-date basis, the shares of the Indian Railway Catering and Tourism Corporation have soared to more than 22 per cent or 147 points on the National Stock Exchange.