MapmyIndia Locked At Upper Circuit 20%, Hits Record High After Goldman Sachs Initiates Coverage – News18

Shares of C.E. Info Systems (MapmyIndia) were locked in the 20-per cent upper circuit at Rs 2,401.90, hitting a record high on the BSE on Thursday, amid heavy volumes. The stock of the software products company surpassed its previous high of Rs 2,340, touched on November 17, 2023.

This comes after the global brokerage firm Goldman Sachs reportedly initiated coverage on the stock with a target price of Rs 2,800.

Goldman Sachs has a ‘buy’ recommendation on CE Info Systems as it foresees an upside potential of over 19% for the stock from its current price of Rs 2,347.45.

As per reports, Goldman Sachs believes the company is well-poised to benefit from an early leadership position in fast-growth end-markets. It enjoys over 80% market share in automotive OEM navigation software.

Further, the global brokerage firm has projected a 38% revenue CAGR for CE Info Systems from the financial year 2024 to financial year 2027, with a steady EBITDA margin ranging between 38% and 41%.

C.E. Info Systems is India’s leading deep-tech digital map data, geospatial software and location-based IoT products, platforms, solutions, and APIs company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS).

The company provides its digital maps, software products, platforms, application programming interfaces (APIs), IoT, and solutions to new-age tech companies, businesses across industry verticals, automotive OEMs, government organisations, developers and consumers, under the ‘Mappls MapmyIndia’ brand.

For the financial year 2023-24 (FY24), MapmyIndia reported 25 per cent year-on-year (Y-o-Y) growth in its consolidated profit after tax at Rs 134.40 crore. Revenue from operations grew 35 per cent Y-o-Y at Rs 379.4 crore. However, the reported earnings before interest, taxes, depreciation and amortisation (Ebitda) margin declined to 41 per cent from 42 per cent in FY23.

The company’s open order book grew 49 per cent to Rs 1,372 crore at end of FY24. Annual new order bookings grew 63 per cent to Rs 834 crore in FY24.

The year gone by continued to show growth of the company’s core B2B and B2B2C business across existing market segments of automotive, corporate, government and mobility.

The management said the order book achievements give them further confidence that the company is on track to its stated milestone of crossing Rs 1,000 crore revenues by FY27/FY28.

“We continued to acquire new B2B and B2B2C customers – including many businesses and enterprises across industry verticals, new-age consumer-tech companies and key government organizations – raising our base to 880+ customers for our MaaS, SaaS and PaaS offerings, giving us a great platform to up-sell and cross-sell our wide variety of offerings and use-cases to existing and new customers. Customer diversification, de-concentration and retention continued to trend healthily,” the management said while announcing FY24 results on May 13.