The shares of eMudhra Limited soared 28% in the last two days and reached a fresh 52-week high of ₹ 327.25 apiece on the National Stock Exchange. This happened after the company reported healthy earnings for the quarter ended June 2022 (Q1FY23). Its margins improved due to higher contribution from Enterprise Solution business and operational efficiencies.
eMudhra Limited is a licensed certifying authority that is involved in issuing digital signature certificates in India under its eMudhra brand. It is licensed by the Controller of Certifying Authorities (CCA), Ministry of Information Technology, and operates under the guidelines set by the Information technology Act. As per FY 21 data the company had a market share of 37.9% in the digital signature certificate market space.
Currently, the stock is trading at its highest level since its listing on June 01, 2022. The shares were issued at ₹ 256 per share and the shares had hit a 52-week low of Rs 236.30 on June 22, 2022.
eMudhra Limited is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe. This allows it to sell digital identities to individuals and organizations worldwide and issue SSL/TLS certificates for website authentication. It has strong digital signature certificate expertise with a market share of 37.9% as per FY 21 data.
The company reported a 44% year-on-year jump in its consolidated profit after tax of ₹13.71 crore. Its EBITDA margin remained stable at 40.1% in the April to June quarter. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.
Its operating revenue grew 15% year on year. This strong growth was primarily led by an increase in its enterprise solutions business, especially in international markets which grew by 140 per cent YoY.
The company’s management said that its performance was aided by growth in international markets. Additionally, it is a reflection of enterprises globally adopting cybersecurity and paperless transformation solutions as part of enterprise digital initiatives.
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