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THESIS ON C.E. INFO SYSTEMS LIMITED (MAPMYINDIA)

·      

About The Company

Ø  MapmyIndia is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. The company is a 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). The company provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT for the Indian market under the (MapmyIndia) brand, and for the international market under the (Mappls) brand.

Ø As of September 30, 2021, the company had serviced over 2,000 enterprise customers since their inception. During Financial Year 2021 and the six month period ended September 30, 2021, it had over 500 customers on their SaaS, PaaS and MaaS platforms. Their customers include marquee and renowned global tech giants, new-age consumer internet technology companies, leading automotive manufacturers, large businesses across industry segments such as BFSI, telecom, FMCG, industrials, logistics and transportation, and key government organisations. Some of their customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (“GSTN”). 

·       Strengths

Ø B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings capitalizing on early mover advantage.

Ø Pioneers of digital mapping in India.

Ø Developing proprietary and integrated technologies, full stack product offerings, continuous innovation and robust sustainable business model.

Ø Offers the most comprehensive, detailed and accurate digital map database for India.

Ø Offers the widest range of location-powered software and IoT-enabled technologies compared to its peers.

Ø Provides a combined offering of map data, location content and platform through one integrated system.

Ø Presence of over 25 years in the Indian market and have leading enterprises including global and Indian tech giants and upcoming start-ups, multi-national and domestic businesses across industry verticals, automotive OEMs, and key government organisations across the central, state and local level, as our customers.

Ø Enjoys a strong brand recall in the B2B and B2B2C segments of mapping

technologies. 

·       Its Pioneering Initiatives include:

Ø Built India’s digital maps in 1995

Ø Launched India’s internet mapping portal and internet mapping technologies in 2004

Ø Launched pan-India GPS navigation system in 2007

Ø Launched IoT (GPS-based telematics) platform in 2011

Ø Launched map and location API Platform for developers in 2015

Ø Building transportation, logistics and workforce automation platforms since 2016

Ø Building AI-powered 4D HD Digital Map Twin of the Real World since 2017

Ø Launched nation-wide unique digital address and location, eLoc, in 2017

Ø Launched geospatial analytics and GIS platform in 2019

Ø Launched N-CASE mobility suite for Digital Vehicle Transformation in 2019 

·       A Snapshot of its Map and Data and Platform and IoT Offerings:

·       Product Use Cases in Different Industries

Ø Automotive: proliferation of in-built navigation devices from luxury cars to mid-level cars to entry-level cars. Maps are now being offered in two wheelers which provides a significant growth opportunity;

Ø Food delivery: address intelligence, last mile delivery tracking;

Ø Ecommerce: long haul first mile and last mile delivery tracking;

Ø Healthcare and Pharma: distribution and logistics of medical goods, indoor mapping of plants, GPS tracking for ambulance;

Ø BFSI: geo-verification and on-boarding, usage-based auto insurance, geo-CRM for sales, claims and collection agents;

Ø Retail and QSR: location enabled online e-commerce, location-based digital advertising;

Ø Telecom and Utilities: field force monitoring, optical fiber mapping and distribution analytics;

Ø Transportation and Logistics: fleet and asset tracking, transportation data, truck routing solutions, driver safety, route risk assessment;

Ø Government: Geo-tagging of public assets for repair and overhaul; for example, gas pipeline, water pipeline; emergency response, smart city, taxation;

Ø Railways and waterways: network and route mapping; tracking of fleet;

Ø Forest department: geo-tagging and digital mapping. 

·       Financial Analysis

Ø Almost a debt free company.

Ø Delivered a good profit growth of 37% CAGR over last 4 years.

Ø Operating Margin for F.Y. 2021-22 stood at 59.61%.

Ø PAT Margin for F.Y. 2021-22 stood at 43.43%.

Ø ROE and ROCE for F.Y. 2021-22 stood at 19.51% and 25.80% respectively.

Ø Basic EPS and Cash EPS for F.Y. 2021-22 stood at 16.34 per share and 17.90 per share respectively. 

·       Future Prospects

As per the data of F&S Report as published in the RHP of the company, the total Indian addressable market of digital maps and location-based intelligence services is expected to grow to USD 7.74 billion (₹ 474.9 billion) in 2025 at around 15.5% CAGR from 2019 to 2025, and most of this growth would be from new projects and policies announced by the Government of India that encourages domestic players of digital maps and associated solutions. The total global addressable market stood at around USD 86.55 billion (₹ 6.4 trillion) as of 2020 and is expected to reach around USD 173.61 billion (₹ 12.9 trillion) by 2025 growing at a CAGR (2019-2025) of 13%. Mobile navigation devices, the wide usage of 3D platforms and advanced survey technology, digital mapping etc., are the key driver for growth in the total addressable market. As a result of increasing awareness of the benefits of, and growing number of use cases and applications of digital maps and location intelligence technologies, the rate of adoption of digital maps and location intelligence is increasing in consumer apps, in enterprise digital transformation, in new vehicles being introduced to the market, and for existing vehicles and fleets plying on the roads. 

Hence there is a huge headroom for future growth.

Sources used in thesis: RHP published by the company and moneycontrol.com

Note: This blog is only for sharing my personal opinion for educational purpose. This is not an investment advice so please consult your financial advisor before investing.

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