MapMyIndia - Growth Story Unscathed: Anand Rathi

Anand Rathi Report

CE Infosystems Ltd.'s (MapMyIndia) nine months-FY23 revenue grew 45.7% YoY (org. 23.4%) to Rs 2.1 billion. Its automotive and mobility business (bringing 53.8% to revenue) grew 51.1% YoY, and its consumer tech and enterprise business (46.2%) grew 40.1% YoY. The nine months Ebitda margin was flat YoY at 42.2%, chiefly due to higher marketing expenses and high growth in the internet of things business.

This initially compresses margins as device hardware has lower margins, but then (12 months down) generates high margin software-as-a-system revenue.

Factoring in all this, we cut our FY23E/FY24E Ebitda 4.4%/7.4% and introduce FY25E. Given MapMyIndia’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.

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