MapmyIndia slips 4% to hit lowest level since listing; nears issue price

Shares CE Info Systems, owner of MapmyIndia, slipped 4 per cent to hit a new low of Rs 1,059 on the BSE in Wednesday’s intra-day trade.

The stock is trading close to its issue price of Rs 1,033. With today’s decline, it has tanked 45 per cent from its 52-week high of Rs 1,918.35 touched on January 17, 2022. The company made its market debut on December 21, 2021.

CE Info Systems is India’s leading advanced digital maps and deep-tech company, popularly known as MapmyIndia and globally as Mappls.

The company offers proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS), including advanced digital map data, software products, platforms, application programming interfaces (APIs), IoT and solutions to new-age tech companies, large businesses, automotive OEMs, government organisations, developers and consumers.

MapmyIndia is one of the few companies, which has been able to successfully compete with Google Maps in the Indian mapping space.

Key reasons for this include MapmyIndia’s focus on the B2B segment as compared to Google’s focus on B2C, stronger integration with automobile manufacturers, consumer companies’ reluctance to share data with Google, and the Indian government’s push towards an “Atmanirbhar Bharat”, as per analysts.

In the past three months, MapmyIndia has underperformed the market by falling 20 per cent as compared to a 8 per cent rise in the S&P BSE Sensex. In the past one year, it has slipped 34 per cent as against a 5 per cent gain in the benchmark index.

In first half (April-September) of financial year 2022-23 (H1FY23), MapmyIndia reported 8 per cent year-on-year (YoY) growth in its consolidated profit after tax at Rs 50 crore.

Revenue from operations grew 41 per cent YoY at Rs 141 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin contracted 300 bps to 43 per cent from 46 per cent in H1FY22.

MapMyIndia has developed a sustainable moat by creating a detailed mapping universe which is difficult to replicate, developing a full stack of proprietary and integrated technologies, and benefiting from government policies in the sector. This has resulted in strong revenue growth, high profit margins and premium valuations for the company, said Centrum Broking in a report from October 2022.