Recent update on the news
Update as on 27th August 2022
IRCTC informed to the NSE BSE stock exchanges on 26th August 2022 regarding withdrawal of the tender regarding appointment of Consultant for Data Monetization of IRCTC online user data. It has stated the cause as the Central Govt. has withdrawn the Personal Data Protection Bill 2018.
If we want to know why Govt. of India has withdrawn the Personal Data Protection Bill, the Joint Parliamentary Committee has recommended a lot of amendments nearly 81, in the bill, hence the Govt. may planning to introduce a new data protection bill.
The main reason behind the withdrawal of the tender by IRCTC may be the criticism from various platforms regarding sharing of user data. So it may consider a proper plan before taking any decision regarding this proposal in future and the process may delay for some time.
But if the proposal becomes successful in future after introducing New Data Protection Bill by the Govt. then it would generate good revenue for IRCTC and also for its shareholders.
IRCTC news regarding new monetization scheme
IRCTC share price jumped nearly 7% today as there is news regarding IRCTC floating tenders to appoint consultant for monetization of its user data. The news reported that IRCTC is proposing to monetize its online user data who are using its online platform to book tickets by sharing it with partners like hotels, travel agencies etc. who may be interested. It may only share travel history and not any sensitive personal data.
Although the company clarified to NSE / BSE Stock exchanges that ‘No negotiations have taken place so far’. It also stated that “As a commercial entity, the Company explores the business opportunities for new areas. As other business tenders, this tender has also been floated merely to appoint a consultant. The consultant will guide IRCTC and Indian Railways on monetization activities and advise on monetization value of Digital Assets observing various Acts or laws including lT Act 2000 and its amendments, User data privacy laws including GDPR (General Data Protection Regulation) and current ‘Personal Data Protection Bill 2018 of India. Further, being a Government Company, it is a regular practice to float tenders.”
The company also stated that none of its authorized representative has given any input or statement regarding this news or tender, and the company reported that the tender process is at nascent stage.
If the proposal becomes successful then IRCTC could monetize its online user data by sharing their travel history and interests, according to the news report. This will definitely increase the revenues & profits of IRCTC, for which the share price shown attraction in the markets.
Table of Contents
- Recent update on the news
- IRCTC news regarding new monetization scheme
- IRCTC Share price & Chart
- IRCTC multibagger returns
- IRCTC Q1FY23 June 2022 Quarterly Results
IRCTC Share price & Chart
Currently the IRCTC Share price is at Rs.723 which is at nearly 40% discounted from its 52 week high of Rs.1279. The stock is currently running at a PE of 70. In the candlestick chart the RSI is at 80, that may be at over bought zone but the stock is showing breakout of the upper Bollinger band and the price is at above its all 20 day, 50 day & 200 day moving averages. So, technically the stock is in bullish trend both in short term & long term.
[The chart we have presented here is on Zerodha web platform. We personally use Zerodha & Upstox for investing and trading in Indian stock market.]
IRCTC multibagger returns
Although IRCTC has given normal 36% return in last year but it has given multibagger 360% return in last three years since its listing on 2019 despite it is at 40% correction. It had also given a Stock Split of 1:5 in last October 2021.
As we all know IRCTC is a monopoly type of stock which provides online ticketing & catering services of Indian Railway. This is a large cap stock with market capitalization of more than 57 thousand Crore. The Govt. of India as the promoter has 67% of shareholding in it. FIIs & DIIs have 5.87% & 5.32% respectively. Public shareholding is of 21.42%.
IRCTC Q1FY23 June 2022 Quarterly Results
IRCTC has also reported better than expected quarterly results in June 2022 quarter where the revenue jumped 250% & Net profit jumped 200% Year on Year in Q1FY23 quarterly results. Quarter on Quarter revenue increased 23% and Net Profit increased 15%. It has also reported increase in all segmental revenues and profits.
