IRCTC hits lower circuit; only sellers for stock as 155 trains cancelled

Indian Railway Catering and Tourism Corporation (IRCTC) hit 5 per cent lower circuit in Thursday’s trade as Indian Railways cancelled 155 trains due to low occupancy and coronavirus.

Railways on Thursday cancelled 84 trains, which will not operate between March 20 and March 31, in view of low occupancy and the novel coronavirus pandemic, officials said. With this, the total number of cancelled trains has climbed to 155.

"All passengers having tickets in these 155 trains are being informed about it individually. No cancellation fee will be taken for these trains. Passengers will get a 100-percent refund," an official said.

The railway ticketmaster is one of the biggest casualties in the current sell-off as shares have dropped about 50 per cent from its all-time-high recorded last month.

Shares of IRCTC were locked at Rs 1,000.35, down 5 per cent. There were nearly 3.1 lakh pending sell orders with no buyers on NSE and BSE.

Geojit Financial believes the travel sector is going to be hit hard due to fast spreading coronavirus in India. IRCTC may take a hit due to cancellation of more trains going ahead as its catering and ticketing businesses will see a slowdown.

Spark Capital initiating coverage on the scrip said thanks to its internet ticketing business and privatisation iof passenger train operations, the company stands to gain. It has a ‘buy’ call on the stock with target at Rs 1290. That means an upside of 29 per cent.