What is the big story that justifies the rally in the IRCTC stock?

On 07 October, the stock of IRCTC hit a new high of Rs.4,512. The stock has been rallying for the past few days after it became clear that the 1-for-5 stock split would bring the stock price within a more manageable reach. However, the rally has been phenomenal. The stock of IRCTC has already rallied 20% in the last one week and a whopping 50% in the last one month. If you look at since the IPO 2 years back, the stock is up 1000%.

Behind all the stories of split, there is a bigger story that investors are finally looking at IRCTC as an atrociously cheap digital play. It has an enviable cache of captive customers and caters to a service that is the virtual lifeline for the Indian economy. That is the reason a number of analysts are upgrading the stock from these levels also. Apart from a strong customer franchise and monopoly status, IRCTC is likely to be included in global MSCI index.