CE Info Systems Ltd (NSE:CEINFO) is one of the leading information technology (IT) companies in India. It provides managed services comprising of business process automation (BPA), information management, enterprise resource planning (ERP), and cloud services to its clients across organizations in various industries.
The company’s strong focus on BPA and ERP solutions caters to the needs of large enterprises and public sector organizations. Recently, CE Info Systems has reported strong growth in its Cloud Services Business segment and this has helped the stock prices appreciate by 15%. In this report, we will provide a detailed analysis of the company’s performance including highlights of its recent developments.
NSEI:MAPMYINDIA Stock Report
1. The company has released their annual report for fiscal year ended March 31, 2019 and the results were disappointing. Revenue marginally increased YoY to Rs 57 crore from Rs 56 crore in 2018 while net loss widened to Rs 10 crore from Rs 6 crore. The company attributed the widening net loss to investments made in new businesses, a 77% increase in workforce costs and asset impairment charges of Rs 5 crore incurred due to the untenable market conditions prevailing at the time of filing of their Annual Report.
Despite these headwinds, management reiterated its commitment to grow the business through organic expansion and acquisitions as well as exploring potential partnerships/collaborations with industry peers who can provide value-add services to MAPMYIndia’s customers. For further updates on CE Info Systems Ltd.
2. Earlier this month, CE Info Systems Ltd announced that it has entered into an agreement with MapmyIndia Pvt Ltd (MapmyIndia), one of India’s leading digital mapping companies, under which CE will acquire all outstanding shares of MapmyIndia for a total consideration of US$102 million in cash including the assumption of certain liabilities related thereto. The acquisition will provide MAPMYIndia’s customers with expanded offerings across mobile apps and online maps, complementing CE’s existing mapping solutions for businesses and consumers in
NSEI:MAPMYINDIA Security Analysis
NSEI:MAPMYINDIA is one of the leading technology companies in India. The company produces mapping and navigation software for mobile devices. NSEI:MAPMYINDIA was founded in 2007 and is headquartered in Mumbai, India.
In July 2017, NSEI:MAPMYINDIA announced that it has acquired US-based startup MapBox Inc. for an undisclosed sum. This acquisition will help NSEI:MAPMYINDIA further its aim of becoming the global leader in mobile mapping and navigation software.
NSEI:MAPMYINDIA operates through five business segments: Mobile Solutions (including map application development, data services, traffic solutions, and map publishing); Ecosystem (the company’s investment arm); Data Services (providing big data solutions to customers across industries); Traffic Solutions (developing traffic solutions to improve mobility”); and Corporate Affairs (including corporate communications, human resources, risk management, legal).
The company has a long history of innovation. NSEI:MAPMYINDIA was one of the first Indian companies to develop a mobile app for Google Maps. It also developed the country’s first real-time traffic information solution for drivers using Android phones. NSEI:MAPMYINDIA’s latest product is a navigation app for vehicles that uses artificial intelligence (AI) to provide drivers with directions on the fly.
NSEI:MAPMYINDIA Company Profile
NSEI:MAPMYINDIA is a technology company that develops and markets mobile mapping applications. It offers a variety of applications, including an address book, navigation, and location-based services. The company was founded in 2007 and is headquartered in Mumbai, India. NSEI:MAPMYINDIA operates in the business-to-business segment.
Capital Structure and Financial Performance
The stock of Mumbai-based CE Info Systems Limited (CEInfo Systems) was trading at Rs. 380 on the National Stock Exchange of India Limited (NSE) as on January 04, 2019. As per the latest filed Form 11-K\CAD-US, the company had total liabilities of Rs. 2,955 crore as on December 31, 2018, while its equity was valued at Rs. 1,951 crore. The company’s net worth was reported to be Rs. 1,937 crore as on December 31, 2018.
The company has a debt-to-equity ratio of 0.8x and a gross margin of 55%. CEInfo Systems had reported consolidated income from operations of Rs. 65 crore for the fiscal year ended December 31, 2017 and consolidated income from operations stood at Rs 202 crore for the fiscal year ended December 31, 2018. For FY19 onwards, the company has announced consolidated income from operations target of Rs 350 crore to 507 crore with a break-even point of Rs 608 crore in terms of standalone EBITDA margins without any impact from foreign currency translation effects or other items such as impairment charges/write offs etc., during this fiscal year only.
As per Bloomberg NEF’s analysts report released on January 02nd 2019 titled “Indian services companies post first annual revenue decline in six years amid cautious spending”
SWOT Analysis
1. Strengths:
-Founded in 2006, CE Info Systems is a leading provider of information technology services to the manufacturing and distribution industries in India.
-The company has a strong presence across southern India, with over 15 offices and 2000 employees.
-CE Info Systems offers comprehensive IT solutions including business process outsourcing (BPO), application development, systems integration, cloud services and managed services.
-Its BPO services include value added features like project management, customer relationship management (CRM) and back office functions such as accounting and inventory management.
2. Weaknesses:
-The company’s key competitors include Infosys Ltd., Wipro Ltd., HCL Technologies Ltd. and Tech Mahindra Ltd .
-There is intense rivalry among these companies, which could pose a challenge to CE Info Systems’ growth prospects in the near future.
-The company’s financial performance has been weak in recent years, mainly due to increased competition from global players in the IT sector.
-The company’s debt burden is high at Rs 3,597 crore as of March 2016. This could limit its ability to invest in new projects or expand operations into new markets.
-There are reports of bullying and harassment by some employees against other employees at the company; this could adversely affect morale and performance.
Outlook
CE Info Systems Ltd (NSEI:MAPMYINDIA) is a leading provider of enterprise resource planning (ERP) software solutions to businesses in India. The company has a portfolio of award-winning software offerings that include market leading planning and forecasting, supply chain management, customer relationship management (CRM), and business intelligence platforms. In addition to its core Indian operations, CE Info Systems has an international presence with offices across North America, Europe, and Asia Pacific.
On July 25th, 2017, CE Info Systems Ltd announced the appointment of Mr. Kunal Shah as Chief Operating Officer (COO). Mr. Shah brings over 20 years of experience in the software industry with him including stints at Microsoft Corporation and Oracle Corporation. His appointment marks an important step forward for CE Info Systems as it works to consolidate its position as a global leader in ERP software solutions.
In June 2017, CE Info Systems Ltd announced the successful completion of its initial public offering (IPO). The company raised Rs 208 crore worth of equity capital during the IPO process which will be used to strengthen the company’s execution capabilities and invest in new product development initiatives. The success of the IPO reflects well on the company’s strong fundamentals and outlook for future growth.
Conclusion
In this CE Info Systems NSEI:MAPMYINDIA Stock Report, we’ve looked at the latest news and data surrounding the stock. We’ve also provided our opinion on whether we think it is a good investment at this point in time. As always, if you have any questions or comments feel free to reach out to us either via email or Twitter.
