In an interview with CNBC TV18, Nilesh Shah, MD and CEO of Envision Captial said MapmyIndia's broad focus on a variety of fields could help it bring value in the long term.
“Majority of our tech companies are either IT services companies or Software as a Service (SAAS) companies. This (MapmyIndia) is a deep tech company, which is focused on mapping solutions, navigation solutions, and geospatial solutions, where the use case is very broad-based... it can pretty much play a role in any sector of the economy that you can think of. Be it mobility, automobiles, aerospace, defence, urban infrastructure and various development projects,” he added.
Shah, however, cautioned short-term investors and said that the business is not suited to their investment needs. “Obviously it is not going to be for the faint-hearted,” he added.
The ace investor reasoned the elevated margins of the business and said that “the growth can be bumpy along the way”. He said an investment in the company won’t be a good idea looking at a one- to four-quarter perspective. He added that from a thematic and directional perspective, the company is a good pick for a five-year horizon.
The shares of MapmyIndia listed as CE Info Systems have gained by 15.65 percent in the last year. Around 54 percent of the company’s revenue comes from the automotive and mobility (A&M) tech, while its consumer tech and enterprise (C&E) businesses contribute rest of the revenue mix.
The mapmaker’s businesses are expected to get a boost from the mapping solution demands from governance and local bodies. The company is expected to announce its first quarterly results for the current financial year on August 7.
Also read: Envision's Nilesh Shah says realty story still in early days, check out his top bets
MapmyIndia reported a consolidated profit of Rs 107.53 crore in FY23, a nearly 23 percent jump from Rs 87.7 crore in FY22. The geospatial deep tech platform claimed that revenue from operation was up by almost 40 percent to Rs 281.46 crore. Its total income increased by 30.5 percent on a yearly basis to Rs 315.78 crore in FY23 compared to nearly Rs 242 crore in FY22.
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