IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation (IRCTC), the online ticket reservation arm of Indian Railways, rose a staggering 5 percent, reaching an intraday high of Rs 747.65 on the BSE. In the last two trading sessions alone, the stock rose nearly 10.5 percent compared to S&P BSE Sensex, which rose 0.1 percent over the period.
Technically, the stock is up more than 16 percent so far in August and is now in a range of its 200-DMA (Daily Moving Average) at Rs 748, which is a sign of bullishness. The stock has been trading below 200-DMA since the end of April 2022.
As the first of its kind, Indian Railways ticket booking division IRCTC aims to monetize its passenger data bank while doing business with private and government companies. The company aims to raise up to Rs 1,000 crore through this exercise. IRCTC has a large database of every online train ticket ever generated as it is the country’s only train ticket platform.
In the message inviting consultants to apply, the company said Indian Railways generated huge amounts of data, which presented “great opportunities” for monetization.
“Indian Railways wants to monetize the data in Indian Railways customer/supplier applications and internal applications … to generate revenue and also to improve facilitation and further improve services,” it said in the tender issued last month. was released.
“IRCTC is looking to engage a consulting firm to help identify, design, develop and roll out data monetization capabilities.”
It also added that the applicant “had to pass various laws or laws, including IT Act 2000 and its amendments, user data privacy laws, including the General Data Protection Regulation (GDPR) and India’s current ‘Personal Data Protection Bill 2018’). study the business models for monetizing digital assets accordingly”.
In a recent earnings call, the company’s chairman and MD Rajni Hasija said that IRCTC focused more on the non-convenience fee resources, in addition to the convenience fee resources (for monetization) and “will be a major driver… cashing in on IRCTC’s presence on the web and monetizing digital assets… we launched the tender for that, so we hope for good results”.
For the quarter ended June 2022 (Q1FY23), IRCTC reported a 196 percent increase in net profit at Rs 246 crore compared to Rs 82.50 crore in the corresponding quarter a year ago. Total income grew 251 percent year on year to Rs 853 crore.
“Given the pace of revenue, we are increasing our revenue estimates by 5.8 percent / 6.3 percent for FY23/FY24 as we realign our assumptions for catering operations. We believe ticket sales will be closely monitored in the near term as the 2S class reversal will apply from July,” Prabhudas Lilladher’s Jinesh Joshi and Shweta Shekhawat wrote in a note.
“The stock is currently trading at 54x our FY24E EPS estimate of Rs12.5. We currently have a HOLD rating on the stock with a TP of Rs 649,” he said.
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