Digital Maps and Geospatial Data Products: The Issuer provides foundational and comprehensive digital maps across India. The advanced maps represent the real world in 2D and 3D; it provides photo-realistic virtual reality and augmented reality ready maps of the outdoors and indoors, including geo-referenced 360-degree panoramas. These are capable of providing accurate details about the physical world, including roads and buildings, for autonomous safety vehicle platforms and smart city planning and simulations. Maps are dynamic and update continuously in near real-time, including for place updates, location-based events, changes in road conditions, location-based safety alerts, live traffic and weather.
Geospatial data products include location-based demographics, population density, income distribution, anonymised and aggregated people movement behaviour and other location-based datasets to enable various analytics use cases.
Revenue from operations comprises the following: (i) revenue from sale of IoT products; and (ii) sale of map data and software (combined) through royalty, annuity, subscription and software services. The total revenues for H1FY22 were Rs 122.58 crore and the Issuer posted profits of Rs 46.77 crore for the same period which is a huge increase (Rs 17.86 in H1FY21, previous corresponding quarter)
The total revenues increased by 17% in FY21 to Rs 192.27 crore from Rs 163.48 crore in FY20. But it should be noted that this was derived from an increase in other income by 168% which was again offset by decrease in revenues by 37% from sale of IoT products due to the pandemic. During the same period, revenue from sale of map data and software increased by 9%. PAT increased to Rs 59.43 crore in FY21 against Rs 23.20 crore in FY20 due to fall in employee related expenses and other expenses. Profitability margins have been strong for all the last three fiscals.
Total revenues for FY20 increased slightly to Rs 163.48 crore from Rs 163.33 crore. During FY20, revenues from sale of IoT products reduced by 42% and revenues from map data and software rose by 28% when compared to FY19. PAT reduced to Rs 23.20 crore in FY20 against Rs 33.57 crore in FY19.
Debt is negligible and return on net worth is 11.52%, 16.60%, 7.79% and 11.77% for H1FY22, FY21, FY20 and FY19 respectively.
|Cash generated from operations||17.95||83.28||26.73||26.81|
The Issue is priced at 58.83x with annualised EPS of 17.56 as at the end of H1FY21 calculated at the upper price band of Rs 1033 per share. P/BV is 13.54 at NAV of 76.28 as at the end of H1FY22. P/E is 303.82 with EPS of 3.40 as at the end of FY21 which indicates exorbitant pricing of the Issue though there is no comparative number. The Issuer has no listed peers as per the RHP. However, global peers like HERE technologies, Tom Tom, Mapbox, Google maps and ESRI and Trimble do exist. A brief comparison of global peers on their business profile and financials has been produced below.
|Particulars||Tom Tom||Here Tech||MapBox||Google Maps||ESRI||Trimble||MapmyIndia|
|Products offered||Devices, Digital map, software and Services||Devices, Digital Map, Traffic management solutions, software and services||Digital map||Google APIs||GIS, Mapping Products, Geo enabled products, Location Analytics||Geospatial Construction, Agri, Transport & Logistics, Telecommunications||Map and data, API, SDKs, GIS Analytics, AI, IoT, Navigation|
|Key Customers||Uber, Verizon, Fiat, Volkswagen, Microsoft||BMW, Volkswagen, Mercedes||NY Times, Snapchat, Xiaomi, Land Rover||NA||AT&T, Clearwater Seafoods, Red Bull||Warren Averett, LLC and others||Apple Inc, Honda Motors India, Amazon.in, MG, PhonePe|
|Revenue (USD mn, 2020)||618||1002.7||NA||1,82,520||1730||3140||-|
|EBITDA (USD mn, 2020)||-329.4||-249.2||NA||40260||NA||390||-|
MapmyIndia IPO opens on 9th Dec amounting to Rs 1040 crore (100% OFS) with price band of Rs 1000-1033 per share. Minimum application amount is Rs 14462 and the offer closes on 13th Dec. Retail quota is 35% and is expected to list on 21st Dec 2021.
As governments and businesses across the globe are making efforts to digitize their operations, the choice of map service partners is expected to mainly depend on factors like the capability of map service providers to offer localized, highly focused and updated map data. The selection of the right map solution also depends on the comprehensiveness offered by the solution provider.
Although, the map services industry is largely dominated by several global players like Google and TomTom. Companies like MapmyIndia also scores well on several aspects as it has a comprehensive set of offerings ranging from digital maps, map-based navigation systems, relevant APIs and SDKs, map integration capabilities and map data analytical capabilities which are increasingly becoming critical for businesses who want to elevate their map data for better business operations and to provide seamless experience to their customers.
MapmyIndia offers a comprehensive, detailed, and accurate digital map database for India, and the widest range of location-powered software and IoT- enabled technologies. The Issuer has emerged as a niche player in India and is capitalizing on an early mover advantage. The negatives of the Issuer are that its purely an offer for sale, and concern over its sustainability of margins in the future. The IPO has a strong GMP as of today 8th Nov 2021 though it is subject to change as per the market conditions. Hence considering all the above factors one may subscribe to the Issue.
Review By CA Priyanka Choudhary on 29th Nov 2021
About CA Priyanka Choudhary
Priyanka Choudhary Jain is a Chartered Accountant and an experienced credit analyst. She has worked with CRISIL as Senior Credit Analyst on ratings assignments including business and financial analysis in Corporates as well as the Public Finance Sector.
Email: [email protected]
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.
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