MapMyIndia shares may deliver up to 30% return in long term, says Anand Rathi

On reason for being bullish on MapMyIndia shares, Anand Rathi says, “Factoring in the impact on EBITDA due to more growth from the low margin IoT-led business, we cut our FY23e/FY24e EBITDA 4.4%/7.4% and introduce FY25e. We retain our Buy rating on the stock, with a lower TP of Rs1,500 (45x FY25 earnings). Given that MMI has clear advantages in the context of India, not easily replicable and which prove to be huge barriers to the map and navigation business, we believe the premium valuations should endure.”

“We anticipate a 35.8% revenue CAGR over FY23-FY25 based on FY23’s opening order book of Rs7bn, which shot up ~86% y/y (~24% of it to be recognized in FY23 itself) and the greater contribution from Gtrophy. We expect the A&M business to record a 30% CAGR over FY23-FY25, and the C&E business a 43% CAGR,” said Anand Rathi adding, “We all know Google Maps because of its reach through android phones. MapMyIndia is just as big but, unfortunately, still unknown. A B2B and B2B2C market leader in India, MMI was an early mover (1995) in India’s digital mapping. It pioneered digital-mapping technologies such as an AI powered 4D high-definition digital map of the real world, and an N-CASE mobility suite for digital vehicles, etc.”

On suggestion to positional investors in regard to MapMyIndia shares, Anand Rathi said, “We retain our Buy rating on the stock with a lower TP of ₹1,500 (45x FY25 earnings).”

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