Check out this Hidden Gem Stock which is the largest global producer of interactive media content for the automotive industry and engaged in providing automotive retail solutions for dealerships worldwide. It has delivered a return of 4,630 percent in just 4 years thereby multiplying the investor’s money.
Price Action
With a market capitalization of Rs. 778 Crores, the shares of IZMO Limited were trading at Rs. 543.45 per equity share, up 2 percent from its previous day’s close price of Rs. 534.70. It has delivered a return of 180 percent in a year.
Long Term Gain
On March 27, 2020, the shares of IZMO Limited were trading at Rs 11.35 exhibiting a gain of around 4,630 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 4 years ago, it would have turned to ~Rs. 47.30 Lakhs.
About the Company
Izmo Limited is engaged in providing automotive retail solutions for dealerships worldwide and is the largest global producer of interactive media content for the automotive industry. Its products include a Digital Retail Web Platform, Parts Distribution CRM, Search Engine Marketing, and Data Analytics, among others.
Business Segments
It has 3 business divisions namely Izmo Cars a Digital Retail Platform for the Auto Industry, Frogdata an AI Platform, and Izmo Studio an Interactive Exhaustive library of automotive images, videos, and animation. Its other products include izmoEmporio 3D CGI Virtual Showroom and izmoVR a Virtual Car Test Drive.
It has a highly profitable SaaS Platform with an Annual Recurring Revenue (ARR) revenue model and It has an Average annual spend of Rs. 10-12 Crores which is more than 10 percent of its revenue on Research and Development
To capitalize on its AI strength and growing demand, it plans to expand its Frogdata suite, especially into the European markets. It is also exploring opportunities to raise funds in its subsidiary to fuel growth and shall elaborate more in the course of time.
Revenue Breakdown
Coming to the revenue breakdown as per the business divisions, Izmo Limited generated 44 percent of its revenue from Izmo Studio, 29 percent from Frog Data, and 27 percent from Izmo Cars.
Izmo Limited generates 66 percent of its revenue from North America, 24 percent from Europe, and 10 percent from India. Its top customers Stellantis & You France contribute 6 percent of the revenue, Add-On Auto 5 percent, Microsoft Online 2 percent, and others 87 percent.
Customer Base
It has a strong customer base, some of the Marquee clients for automotive include, Stellantis France, Emil Frey, Audi, Porsche, Nissan, Ford, Toyota, Suzuki, Citroen, Sony, and Hertz. For Information technology, Microsoft, Infosys, Wipro, Dataone, IBM and Rambus, In telecommunication Airtel, Idea and many others.
Financials and Ratios
Its revenue from operations grew by 21.40 percent from Rs. 154 Crores in FY23 to Rs. 187 Crores in FY24, accompanied by profits of Rs. 20 Crores to Rs. 26 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 8.99 percent, and a return on capital employed (ROCE) of 9.35 percent. It has reported a debt-to-equity ratio of 0.01.
Written by: Bharath K.S
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