MapMyIndia shares: Shares of C.E. Info Systems, the company behind MapMyIndia, surged by 20% to achieve a new all-time high during today’s afternoon trading session. This increase followed a buy recommendation from international brokerage Goldman Sachs, which initiated coverage on the stock. Goldman Sachs has projected a potential upside of 40% for the stock, setting a price target of Rs 2,800. -MapMyIndia shares
On Thursday, C.E. Info Systems’ stock price hit the upper circuit of 20%, closing at Rs 2,401.90, up from the previous day’s close of Rs 2,001.60 on the BSE. The firm maintained this closing level today. The market capitalization of the software products company also rose to Rs 12,987 crore on BSE, underscoring strong investor interest and confidence in its future growth prospects.
Goldman Sachs forecasts that CE Info Systems is strategically positioned to capitalize on its early leadership in rapidly expanding markets. With over 80 percent market share in automotive OEM navigation software, the company’s homegrown technology is well-established.
The research firm highlights the emerging mobility sector as a significant growth opportunity compared to its core automotive business. Additionally, the corporate and government markets present promising avenues for expansion.
Goldman Sachs anticipates a robust 38 percent compound annual growth rate (CAGR) in revenue for CE Info Systems from FY24 to FY27, supported by consistent EBITDA margins ranging from 38 percent to 41 percent.
However, the stock may encounter challenges such as margin pressure from hardware, competition from open-source maps, and complexities related to mergers and acquisitions.
CE Info Systems
CE Info Systems reported a strong performance in Q4, with net profit increasing by 36 percent year-on-year to Rs 37.94 crore, up from Rs 28 crore in the previous quarter ending March 2023. Revenue also showed robust growth, rising by 46 percent YoY to Rs 106.90 crore.
The company’s EBITDA margin improved by 37 percent YoY to Rs 39.5 crore. Furthermore, CE Info Systems’ order book expanded by nearly 50 percent to reach Rs 1,364 crore, driven by annual new order bookings totaling Rs 825 crore in FY24.
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CE Info Systems specializes in providing digital map data, GPS navigation, location-based services, and software customization to its customers, generating revenue through royalty, annuity, and subscription models.
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