IRCTC: a necessity, a monopoly

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I have an unusual observation to share on the price movement of IRCTC share:

  1. There’s similarity between Zee Entertainment share of 1999-2000 and IRCTC of 2019-2021.

  2. Between 1999-2000 Ketan Parekh manipulated one of his K-10 stocks, namely, Zee Entertainment share price by approximately 21+ times by rallying it from around Rs.35/- per share to over Rs.700/- per share within 2 years.

  3. IRCTC share listed at Rs 320/- IPO price in late 2019 has touched Rs.6400/- appx in 2021… That’s also 20 times in 2 years.

  4. Same pattern… without any significant jump in sales or profit in both cases.

I had thought of this point 3 days back when it was trading at Rs.5500/- and at 17 times high from IPO price. And incidentally it went to 6400 and toppled 30%+.

It’s also unusual that a PSU stock is trading at a PE ratio of well over 300, market cap of 1 lakh cr while sales are miniscule in comparison and the book value is a mere Rs.92/- or so in comparison.

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