MapmyIndia IPO, should you hold or sell MapmyIndia stock after IPO listing

What should you do in MapmyIndia stock buy, sell or hold?

Answer:

MapmyIndia is one of the unique IPO had come into the Indian stock market. Many people also now this company with name of CE Info system. The business model of the company is more in demand from last many years & it is expected to be in demand in the coming years too. Company is one of the best companies in providing advance digital maps, location base IoT technologies with geospatial software. We can say that Digital maps as a service (MaasS) & (SaaS) Software as a service as well as Platform as a service which may be called a PaaS. Company has strong brand positioning in the customers mind with the brand name of “MapmyIndia”. Company brand name is also well known at international level with the name of “Mappls”. Company business is also generating revenues from platforms, products, application programming interfaces i.e API’s etc.  Before we reach to conclusion of MapmyIndia hold or sell, we have to understand the positive & negatives of the company.

Question:

What is  the positive about MapmyIndia Company?

Answer:

1) Company products are more in demand especially the use of digital maps from the Mobile applications as well as GPS instruments.  As per the company management, More than 6.29Mn kms of Indian roads are covered by digital maps. It means that Company has strong grip[ on Indian road network in term of digital maps.

2) More than 7900 towns, 637,472 villages & 17.8 Mn places covers under digital maps  of this company which also includes different categories like malls, ATMs, hotels, police stations, restaurants, retail shops,  electric vehicle charging stations, etc. Most importantly, digital maps cover more than 14.51 Mn house or building addresses.

3) This Company has real view digital maps & such digital maps offers actual roadside and from  ground views based on over 400 Mn Geo referenced photos, 360 degree panoramas  & videos across the country.

4) Company has strong preference in the PSU as well as Private sectors like BFSI, telecom, FMCG, industrials, logistics, and transportation sectors. With well known brand name of “MapymyIndia” company has entered into various MOU's with government organizations like NITI Aayog, National governance Division, Indian Space Research Organisation (ISRO), Ministry of Electronics and Information Technology.

5) Company has strong presence in private sector companies having current projects as well as pipeline projects. Few of the famous names of the companies like, Yulu, HDFC Bank, Airtel, PhonePe, Flipkart and Hyundai.

6) Once we calculate the royalty, subscription fee, and annuity payments all together  then it contributes more than 90% of the company's revenue for FY21.

7) Company is leading into the B2B and B2B2C market for its famous digital maps and location intelligence in India

8)  Company has strong data governance & loyal customers across sectors with strong relationships

9) MapmyIndia is cash rich company. It has nearly 150cr cash on books & Consistent profitable financial track record. We can say that nearly 30rsper share cash is available with the company.

10) MapmyIndia is debit free company & having free cash flows

11) Nearly 157 times subscription to its IPO. it was very good response & It will also give confidence to new investors & traders to take entry into the stock even after small profit booking if comes. 

Questions:

What is the negative about the MapmyIndia Company or CE Info system?

Answer:

As of now, we have not seen much negatives about the CE Info system or MapmyIndia company. Few of the negatives are as follow:

1) Size of the company is very small. Nearly 5.5k crore market cap of the company & revenues are nearly 150cr If we will check last 6 months revenues of the company then it was nearly 100cr .

Financial performance of MapmyIndia Company:

Net Profit

We will try to calculate the performance of last 3 fiscal years on consolidated basis. In the FY 19, the net profit was nearly 33.5cr, In FY 20 net profit was nearly 23cr & in FY21 net profit was nearly 59cr . It clearly shows that company is into the profit from last fiscal years

Turnover

Total turnover of the company in the last 3 fiscal years are as follow, In FY 19 turnover was nearly 163cr which was nearly same in FY20 but in FY21 it was nearly 192cr

.As of first half of FY22 ended on September 30, 2021, company had earned a net profit of nearly Rs. 46.8 cr.  Which includes total turnover of nearly Rs. 122 cr. Company had shown good growth.

Earnings per share (EPS):

As per the company financial reports of last  3 fiscal years, company had  posted an average EPS of nearly  Rs. 7.95.

Valuations of the stock:

If we will calculate the FY22 earnings then it comes nearly at a P/E of around 59.

Dividend Record:

Company had a good dividend track record & it had paid a dividend of 140% for FY20 . But There is no record of r FY19, FY21 and FY22 but it is expected to pay dividend even after IPO listing but it is only based on expectations.

Peers Comparison:

As of now, there is no peer comparison of MapmyIndia in Indian stock market.  

Question:

Should you buy MapmyIndia stock?

Answer:

As we have discussed the all positives about the company. We have also discussed the financials of the company. After all calculation, we can say that it is one of the best company to keep into the portfolio. Even, long term investors can buy MapmyIndia stock after IPO listing. If anyone get chance to enter into the stock after profit booking then it will be good to accumulate at lower level in small number of sets with the long term point of view. As per our expectations, we may see very good returns in the long term (1 to 2 years) point of view. Even Traders may earn good profit in the short term. Even IPO price was bit high 1000rs to 1033rs.

Question:

Should you sell MapmyIndia stock?

Answer:

The business model of the company compel us to say that do not sell “MapmyIndia stock even after listing if you are long term investors but if you had applied for IPO listing gains then on higher levels you may book small number o shares at higher levels Or raise your stoploss 10% from the listing price & carry the stock & enjoy the profit.

Question:

What are the long term targets of MapmyIndia stock?

Answer:

We are expecting multibagger returns in MapmyIndia stock in the long term. Long term targets may come 1950rs to 2180rs+. If these levels will come after IPO listing then try to book some profit & wait for some more profit booking into the stock to re-enter at some lower levels if comes. New investors can accumulate the stock at lower levels for 1 to 2 years point of view. We may revise the price targets of MapmyIndia stock after analysing  upcoming financial results of the company.

Recommendation:

Buy MapmyIndia stock for long term. Buy on Dip.