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

MapMyIndia share price has been in uptrend after ushering in new year 2023. This tech-enabled stock has rebounded strongly after hitting 52-week high of ₹1,022 apiece on NSE in January 2023. MapMyIndia share price today is quoting ₹1,166 per share, around 14 per cent higher from its 52-week low. This has attracted attention of market observers and retail share investors. Anand Rathi believes that the stock may go up to ₹1500 apiece levels in long term, delivering to the tune pf 30 per cent return to its shareholders.

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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