MapmyIndia shares surge 14% on buy rating from Goldman Sachs

Shares of software products company MapmyIndia operator C.E. Info Systems hit the day's high by surging 14.26% on the BSE today after Goldman Sachs assigned a 'BUY' rating to the stock. The foreign brokerage has reportedly initiated its coverage on the stock, with a price target of ₹2,800, a 29% potential upside from Wednesday’s closing levels.

Goldman Sachs in a note says the new-age company could benefit from a top position in key segments, including its 80% share in auto OEM navigation software. The company could attain 38% CAGR in terms of revenue between 2024 and 2027, while its EBITDA margin could be in the range of 38-41%.

Boosted by the development, shares of the homegrown navigation company opened 10% up at ₹2,223.95 and hit the day's high at ₹2,224.85 on the BSE. At the current share price, the stock is trading 2.3% lower as compared to its one-year high of ₹2,340 achieved on November 17, 2023. At the current share price, the company's m-cap stands ₹12,171.60 crore.

CE Info Systems shares have gained 92.03% in the past year, while its calendar-year gain stands at 17.23%. In the past six months and one month, the scrip has 12% and 13.22%, respectively.

MapmyIndia's FY24 revenue stood at ₹379.4 crore, up 35% year-on-year, while it achieved an EBITDA of ₹156.2 crore, up 33% YoY, and an EBITDA margin of 41%.

Its map-led business EBITDA margins remained at 54%, while IoT-led business EBITDA margins expanded from 1.7% in FY23 to 11.6% in FY24. The revenue from the IoT-led business grew 91% YoY to cross ₹112 crore, with EBITDA growing 13x from Rs 1 crore in FY23 to Rs 13 crore in FY24. The company's PAT grew 25% to ₹134.4 crore, with PAT margins at 32%. The company's open order book grew 49% to ₹1,372 crore at the end of FY24.

“2.5+ million new vehicles (4-wheelers, 2-wheelers and CVs, across ICE and EV segments), went built-in with MapmyIndia Mappls, up from 1.9 million during FY23, showing faster than industry growth uptake of our Auto N-CASE suite of map and technology solutions amongst automotive OEMs, including new-age EV companies,” the company said, while releasing its Q4 FY24 numbers on May 13, 2024.

The New-based company recorded a 52% growth in the number of IoT devices installed during the year to 2.9+ lakhs, which led to significant growth in our IoT-led business.

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.