MapMyIndia stock plunges 8% on Q2 net profit decline; Centrum cuts target

Over the past 12 months, MapMyIndia stock has tumbled 10%, while Nifty rose 74% during the same period

Shares of MapMyIndia parent C.E. Info Systems tumbled more than 8% on November 11 after the company reported 8.2% year-on-year decline in consolidated net profit to Rs 30.33 crore in the quarter ended September 30, 2024.

The company's revenue from operations jumped 14% YoY to Rs 103.67 crore in Q2FY25. On operation front, MapMyIndia's earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 7.5% YoY to Rs 37.5 crore and EBITDA margin reduced to 36.1% in Q2 FY25 as against 44.5% in the year-ago period.

MapmyIndia has received official board approval to establish a joint venture (JV) with Hyundai Autoever, a wholly owned subsidiary of Hyundai Kia, informed Rakesh Verma, Chairman and MD. MapmyIndia will hold a 40% stake with a capital investment of $4 million.

The JV, named PT Terra Link Technologies, will be based in Indonesia and will concentrate on providing map-based solutions for automotive OEMs and other businesses across Southeast Asia.

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The estimated revenue of JV would be to the tune of USD multimillion over the next 5 years with order booking and revenue commencing from FY26 itself. This JV will also benefit current customers of MapmyIndia, said Verma.

Following the results, brokerage Centrum Broking maintained its ‘Reduce’ rating on the stock and revised the target price lower to Rs 2,097 from Rs 2,291 earlier.

As of 11:36 am, MapMyIndia shares were trading 7% lower at Rs 1,912.80 on the National Stock Exchange (NSE). The stock has fallen nearly a percent so far this year, underperforming Nifty's 10% gain.

Over the past 12 months, the stock has tumbled 10%, while Nifty rose 25% during the same period

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