MapmyIndia Q3 Results Review - Inline Financial Performance With Robust Outlook For H2 FY24: Yes Securities

Yes Securities Report

CE Info Systems Ltd. reported inline financial performance for the quarter. Both, the sequential revenue growth and Ebitda margin were as per expectation.

MapmyIndia reported sequential revenue growth of 1.0% QoQ (up 36.0% YoY) led by consumer tech and enterprise market segment which was up 8.8% QoQ (up 70.9% YoY) and automotive and mobility tech market segment which was down 5.8% QoQ (up 12.5% YoY).

Ebitda margin decreased sequentially (down 585 bps QoQ) led by increase in overall cost. Internet of things-led business Ebitda margin was at 10.0% in Q3 FY24 versus 8.2% of Q2 FY24 as software as a service income continues to grow.

The business outlook remains strong led by rising demand for digital mapping services and navigation solutions. It enjoys strong moat in domestic B2B digital mapping space led by diverse offerings across map and data; and platform and IoT categories in key markets of-

1. automotive and mobility tech;

2. consumer tech and enterprise digital transformation.

The use cases of its digital mapping services continue to grow across industries driving business growth. The B2C Mappls application is witnessing rising traction.

We estimate revenue compound annual growth rate of 35.6% over FY23‐26E with average Ebitda margin of 43.3% over the period.

We maintain our 'Buy' rating on the stock with revised target price of Rs 2,500/share based on discounted cash flow methodology.

The stock trades at price-to-earning of 59.5 times/43.8 times on FY25E/FY26E EPS.

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