Target: ₹1,500
CMP: ₹1162.10
MapMyIndia’s 9M FY23 revenue grew 45.7 per cent y-o-y (org. 23.4 per cent) to ₹210 crore. Its A&M business (bringing 53.8 per cent to revenue) grew 51.1 per cent y-o-y, and its C&E business (46.2 per cent) grew 40.1 per cent y-o-y. The 9M EBITDA margin was flat y-o-y at 42.2 per cent, chiefly due to higher marketing expenses and high growth in the IoT business. 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.
We anticipate a 35.8 per cent revenue CAGR over FY23-FY25 based on FY23’s opening order book of ₹700 crore, which shot up about 86 per cent y-o-y (about 24 per cent of it to be recognised in FY23 itself) and the greater contribution from Gtrophy. We expect the A&M business to record a 30 per cent CAGR over FY23-FY25, and the C&E business a 43 per cent CAGR.
The 9M consolidated EBITDA margin was flat y-o-y at 42.2 per cent, chiefly due to a pick-up in the device-driven IoT/Gtropy businesses. These are margin-dilutive in the first year, but pick up from the next year due to the greater SaaS revenue contribution.
Risks: Competition from large global operators such as Google; high client concentration (80 per cent of its revenue comes from 35 clients).