IRCTC share price hits 52-week high after railway announces catering expansion

Shares of IRCTC limited surged 3 percent to hit a new 52-week high of Rs 799.95 in early trade on December 14 after the railway major announced its plans for major expansion in the non-railway catering business across the country."IRCTC is now on the road to proliferate in the areas of business beyond Railways for promoting its brand and business across the nation", the Mini-Ratna PSU said in a statement on December 13.

Presently, the company is managing catering services for various Ministries, and autonomous bodies including the Judiciary and Universities. The company has already set up its hospitality outlets in nine such organisations, including the Department of Telecommunications in New Delhi, Calcutta High Court, and UP Secretariat in Lucknow, among others.Furthermore, IRCTC has already signed MoUs with various government bodies including defence establishments such as Border Security Force, Indian Maritime University in Kolkata, and Cotton University, Guwahati. "The company is in the active phase of commissioning 15 more catering units across the country in the near future", IRCTC 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.