The share of this small-cap stock hits 20 percent upper circuit after a well-known brokerage recommended a ‘buy’ rating.
With a market capitalization of Rs 12,896.17 crore, the shares of C.E. Info Systems Ltd were trading at Rs 2,398 per share, increasing around 19.80 percent as compared to the previous closing price of Rs 2,001 apiece.
Goldman Sachs, one of the world’s most well-known brokerages, issued a ‘Buy’ call on the stock with a target price of Rs 2,800 per share. Previously, the upside was 40% from the previous closing price of Rs 2,001.6 per share, but the upside is now 17% from today’s prevailing price of Rs 2,398 apiece.
As per the brokerage, the company is well-poised to benefit from an early leadership position in fas growth end markets. It enjoys over 80 percent market share in automotive OEM navigation software. Goldman Sachs forecasts a 38% sales CAGR for the firm from fiscal year 2024 to fiscal year 2027, with a consistent EBITDA margin of 38% to 41%.
Looking at the CE Info tech’s financial performance, revenue increased by 49 percent from Rs 72 crore in Q4FY23 to Rs 107 crore in Q4FY24, during the same period, net profit magnified 35 percent from Rs 28 crore to Rs 38 crore.
The company’s IoT business uses a Software-as-a-Service (SaaS) approach in combination with a hardware component. The IoT industry is expected to increase tenfold in the next four to five years, while the automotive, corporate, and government industries will grow three, four, and six times, respectively.
The firm has a robust order book worth Rs 1,372 crore. The company obtained a ₹400 crore order from Hyundai Kia in January-March for their mapping business, which is slated to start in the second quarter of FY25.
CE Info Systems Ltd is a producer of digital maps, geospatial software, and location-based Internet of Things (IoT) solutions.
The Company’s business segment is map data and related services. Its core offerings include digital map data, GPS navigation, and location-based services, as well as licensing, royalty, annuity, subscription, and product customization for clients.
Written by:- Abhishek Singh
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