Should I buy IRCTC after stock split?
Table of Contents
- 1 Should I buy IRCTC after stock split?
- 2 Should I sell IRCTC shares before stock split?
- 3 When IRCTC share split will happen?
- 4 Is it a good time to buy IRCTC?
- 5 What will happen to IRCTC stock price after the split?
- 6 What will be the face value of IRCTC share if approved?
- 7 What does the fall in the share price after a split mean?
Should I buy IRCTC after stock split?
Going ahead the fundamentals of IRCTC is very strong and while at the previous price (before the stock split), analysts recommended holding the stock instead of buying due to higher valuations. The split only makes the stock more appetizing to investors.
Before split or after split, this thing wouldn’t change. Split just reduce the share price and not its Market Capital or valuations. So, if you are looking for atleast 3–5 year investment idea, then IRCTC may worth at current price. Otherwise, you may consider it after split too.
Is it better to sell before or after a stock split?
At face value, stock splits shouldn’t matter. However, stocks that split tend to be strong performers after splitting. With this in mind, selling before a split is usually a bad decision, unless you’re not positioned to hold a stock that is more likely to appreciate.
In the past three months, it has zoomed 105 per cent, as against a 16 per cent gain the S&P BSE Sensex. IRCTC has fixed Friday, October 29, as the record date to ascertain the name of shareholders entitled to the subdivision/split of equity shares of Rs 10 each into five equity shares at a face value of Rs 2 each.
Is it a good time to buy IRCTC?
If we talk based on the chart then there is no confirmation to buy. We have to wait for trend continuation confirmation with big bulls. If you are a long-term investor then you can go for it now based on fundamentals. If we go through fundamentals then business is good and demandable in the future.
Who will get IRCTC share split?
In the case of IRCTC, each shareholder’s one share will be multiplied by five. The number of shares would increase to 125,00,00,000 from 25,00,00,000 after the split, according to reports….IRCTC Sets Record Date For Stock Split: Check Date And Other Details.
| INDIAN RAILWAY CATERING AND TOURISM CORPORATION LTD FUNDAMENTALS | |
|---|---|
| Price/Book (MRQ) | 46.05 |
| Price/Earning (TTM) | 178.13 |
| ROCE (\%) | 19.35 |
What will happen to IRCTC stock price after the split?
Similarly, IRCTC stock price would come down at around ₹ 500 to ₹ 550 from existing ₹ 2666 share levels. According to experts, this sub-division of IRCTS shares won’t impact company valuations but it would become easy for small investors to invest in IRCTC stocks after the split.
If the approval gets nod from the Ministry of Railways and the existing share holders, the IRCTC share price face value would become ₹ 2 instead of existing ₹ 10 per equity share. Similarly, IRCTC stock price would come down at around ₹ 500 to ₹ 550 from existing ₹ 2666 share levels.
How is the performance of IRCTC post covid-19?
During covid the share of IRCTC has fallen down due to restrictions in travelling. But after covid it will show its outstanding performance .Profitability of IRCTC is very good. There is no debt in IRCTC which is a major advantage. IRCTC has created a monopoly.
The fall in the share price ex-split or ex-bonus is to match price levels before the split.