23rd of July 2024, FM Nirmala Tai presented the Indian General Budget after the previous Interim Budget on 1st of Feb. Like most of the budgets presented over the past five to seven years, the 24-25’ Budget also lacks excitement which can be learned from twitter and other social platforms. Retail traders, along with the middle class, were particularly unhappy with this year’s general budget. Many jokingly referred to it as the “Bihar-Andhra Pradesh Budget,” suggesting that the government wants to pay back these states for their support in the Elections.
Honestly, even I felt sleepy for almost the entire budget, but one thing that caught my attention was when Tai announced the government’s plan to digitise land records. Land records? And digital? What and how will they work? Let’s dig into it further.
Did You Know?
In India GoogleMaps can not save Geographic data on their servers due to regulatory issue. This gives an edge to companies like MapMyIndia
What's the plan?
The government has launched a plan to digitise land records through the nation. With this, they aim to convert the old paper based land ownership documents into a modern digital format.
How Digital Land Records will work?
The digitization process encompasses several key steps:
- Convert existing records to digital files
- Creating GIS-based maps of lands
- Develop a publicly accessible portal.
This process aims to enhance transparency in land transactions, reduce property disputes, and streamline land management processes. Land disputes, uncertainty about the paper works are some reasons why most people avoid real estate investments. Imagine investing in a flat, only to later discover that the land is in a legally disputed area.
When implemented, the new system will boost investor confidence in the real estate sector by providing reliable, easily accessible land information. Moreover, Urban planners will have more accurate data about their future developments.
Which stock to benefit?
When we talk about digital maps, one company that immediately strikes our mind is – CE Info Systems Ltd (NSE: MAPMYINDIA). Founded in 1995, MapmyIndia is a leading company in India which specialises in digital maps, geospatial data, and location-based services.
They provide mapping services to enterprise for IoT and geo analytics, serve automobile industries for navigation, and their services like Mappls are used by government agencies for planning and management.
How MapMyIndia Fits with the Government's Plan
MapMyIndia’s solutions are exactly what the government wants for their digital land reform project – Precise maps for Indian terrain. Now, I was not alone who thought the stock might do well after the announcement of GIS based digital maps. The stock shot up by more than 8% immediately after Finance Ministers announcement.
Personally, I was bullish of CE Infotech even when the stock was at its all time low in April 2023. Why would anyone not be? The entry barrier is high, so competition is less. Demand for digital mapping is at an all time high, and it will keep rising considering the Digital India landscape.
Technically, how is MapMyIndia as of now?
CE Infotech was trading in a range of 1600 to 2300 forming a Darvas Box since September 2023. The stock has broken out of this range supported by high volume, and now trading near its all time high of ₹2738. A range of consolidation can be spotted which is under formation from the last 1 month. This signifies that the stock might be preparing for an upward projection.
The momentum of MapMyIndia has also outperformed flagship index Nifty. RSI is also stronger than other stocks in the IT sector. We can also spot a narrow range pattern for the last 7 days, breakout from which will result in continued upward movement.
Strength Matrix of MapMyIndia
What This Means for the Future
The government’s plan to use GIS mapping for making digital land records is a big opportunity for MapMyIndia. It allows the company to:
- Strengthen its position as a leader in digital mapping
- Offer more services
- Get involved in new areas of city development and management
To End With
MapMyIndia has performed quite well in the last 1 year with its stock price gaining above 66% which is pretty good compared to most of the IT stocks. As the digital revolution in India continues, the demand for digital maps will keep growing. Not only for navigation and urban planning, but, Digital mapping services have a wide range of uses like disaster management, tourism and much more than I can currently think of. Now, I’m not suggesting you wake up tomorrow, and allocate half your portfolio with shares of CE Infotech. However, I feel it’s a good plan to add some stocks to our long term portfolio and enjoy the company’s steady growth along with digital India. BTW, what do you feel about this company? Do comment below.
