InvestorQ : Why has the stock of IRCTC been finding so much of buying interesting of late?
Sam Eswaran made post

Why has the stock of IRCTC been finding so much of buying interesting of late?

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Moii Chavate answered.
1 month ago
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The stock price of Indian Railway Catering and Tourism Corporation (IRCTC) jumped more than 3% on Friday to close the day at Rs735. The trigger was the recently announced plans to monetise its passenger data bank. That was an announcement that was expected for quite some time and even analysts had pointed out that would be the big trigger for the stock. The stock has rallied by nearly 10% in the last 3 sessions. The data monetization plan will not only provide an additional revenue stream but also enhance valuations of IRCTC.

While numbers may be too early to project, the company proposes to generate about Rs1,000 crore through this exercise. Indian railway tickets are one of the most popular and authentic database of customers. For now, IRCTC has just floated a tender to get a consultant to help monetize its data. For Q1FY23, IRCTC reported a 196% surge in net profit, at Rs246 crore, while the total income surged by 251% to Rs853 crore. The database had always been an intangible asset that was not adequately exploited by the company.

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