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Anand Rathi Placed "Buy" On Parent Stock Of MapMyIndia For 29% Upside
Anand Rathi has a "Buy" on C.E. Info Systems Ltd (MapMyIndia), the parent company of MapMyIndia. It has an estimated target price of Rs 1,500 apiece for the stock, implying a potential upside of 29% from the current share price of the stock. MapMyInida is a midcap data and technology products and platforms company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS). Check below to know more:
Stock Outlook & Returns Over The Past 5 Yrs
The stock of MapMyindia last traded at Rs 1,163.90 apiece, up 0.75% from its previous close. The stock since its listing on the exchange, on 21 December 2021, has fallen 16.49%. However, it has gained 3.66% in the past 1 week. It gained 2.7% in 1 month and 1.22% in 3 months, respectively. It has fallen 14.82% in the past 1 year.
The stock recorded its 52 week high on 12 April 2022 at Rs 1,716.45 apiece and 52 week low on 5 January 2022 at Rs 1,022 apiece, respectively. The market valuation of the company is Rs 6,245.58 Crore.
Growth story unscathed; maintaining a Buy
According to Anand Rathi, MapMyIndia's 9M FY23 revenue grew 45.7% y/y (org. 23.4%) to Rs2.1bn. Its A&M business (bringing 53.8% to revenue) grew 51.1% y/y, and its C&E business (46.2%) grew 40.1% y/y. The 9M EBITDA margin was flat y/y at 42.2%, chiefly due to higher marketing expenses and high growth in the IoT business. This initially compresses margins as device hardware has lower margins, but then (12 months down) generates high margin SaaS revenue. "Factoring in all this, we cut our FY23e/FY24e EBITDA 4.4%/7.4% and introduce FY25e. We retain our Buy rating on the stock with a lower TP of Rs1,500 (45x FY25 earnings). Given MMI's clear advantages in the context of India, which are not easily replicable and huge barriers to the maps-and-navigation business, we believe its premium valuations should endure," the brokerage has said.
Disclaimer
The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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