C.E. Info systems limited (Mapmy India)

C.E. Info Systems Limited (MapmyIndia) 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'). They are India's leading provider of advanced digital maps, geospatial software and location-based IoT technologies. Having pioneered digital mapping in India in 1995, they have earned the market leadership position in this industry and built a strong moat by capitalizing on the early mover advantage, developing proprietary and integrated technologies, full stack product offerings, continuous innovation and robust sustainable business model. 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. As of September 30, 2021, Company had serviced over 2,000 enterprise customers since the inception. During Financial Year 2021 and the six month period ended September 30, 2021, they had over 500 customers on the SaaS, PaaS and MaaS platforms. The 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 the customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network ('GSTN'). As per financial performance, C.E. Info Systems Limited Company has posted total income/net profits of Rs 163.33 Cr / Rs 33.56 Cr (FY19), Rs 163.47 Cr / Rs 23.19 Cr (FY20), Rs 192.27 Cr / Rs 59.43 Cr (FY21) and Rs 122.58 Cr / Rs 33.56 Cr (H1FY22). So company has posted good growth over last couple of years.They have posted an average EPS of Rs 10.61 and average RoNW of 13% for last 3 fiscals. Issue is priced at a P/BV of 13.54 as per NAV of 76.28 on 30.09.21. If we attribute latest earnings of FY21 on fully diluted equity post issue, then asking price is at a P/E of around 97.76 and if we annualise H1 FY22, then on fully diluted equity post issue p/e is 62.12 which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, four lead managers are associated with this IPO, and have handled around 87 IPOs in last three fiscals. From last 10 IPOs, three is opened below issue price and remaining are opened above issue on the day of listing. As of now, five are trading below issue price and other are trading above issue price. ( As on 30.11.21) As per financials, C.E. Info Systems Limited (MapmyIndia) has shown good results, RoNW 16.6% and P/E is respectively 98 and 62 as per FY21 and annualised FY22 earnings. As Software Industry is growing demand for location based data like digital maps will grow and this company can take advantage of this demand, but competition from International players will be tough. Performance of BRLM is average, so we give SUBSCRIBE rating to this IPO and one may apply for good listing gains as well as long term.

• 1  Rakesh Kumar Verma
• 2  Rashmi Verma