Market leader stock with a net profit CAGR of up to 42% in 5 years to keep an eye on

According to the source, India’s software product industry is experiencing significant growth and is expected to reach $30 billion in yearly revenue by 2025. Overall IT spending in India is forecast to increase by 11.2% to nearly $160 billion in 2025. IT exports are projected to reach $210 billion in the 2024-25 financial year, representing 18% of global IT outsourcing spending.

Price movement

With a market capitalization of Rs 8,990.20 crore, the shares of C.E. Info Systems Ltd closed at Rs 1,652.00 per share, decreasing around 0.14 percent as compared to the previous closing price of Rs 1,654.35 apiece. The company has a debt-to-equity of 0.05 which shows the company has less obligation.

Matter explanation

C.E. Info Systems Ltd, a leading Mapping Systems company, achieved a 42% CAGR in net profit over five years, rising from ₹23 crore in FY19-20 to ₹134 crore in FY23-24. This strong growth highlights the company’s expanding market presence and sustained financial performance.

Financial performance

C.E. Info Systems Ltd reported Q3FY25 revenue of ₹115 crore, up 25% YoY, with nine-month revenue rising 17% to ₹320 crore. EBITDA for Q3FY25 stood at ₹42 crore (36% margin). Nine-month PAT reached ₹99 crore, slightly up from ₹96 crore in FY24.

Segment Performance

C.E. Info Systems Ltd saw strong segment growth in Q3FY25. Consumer Tech & Enterprise revenue surged 39% YoY to ₹65 crore, while Automotive & Mobility Tech rose 9% to ₹49 crore. Map-led business grew 33% to ₹287 crore, and IoT-led business increased 4% YoY.

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Strategic Developments

C.E. Info Systems Ltd expanded globally by launching a joint venture with Hyundai Autoever in Indonesia. The company strengthened its Mappls App strategy, secured a major deal with a global social media network in India, and boosted customer acquisition across automotive, fleet management, tech startups, and government sectors.

Challenges and Guidance

Management acknowledges a one-time project impact on C&E segment growth and higher outsourcing costs. Despite 17% nine-month growth, the company remains confident in achieving its 25% annual target. Temporary outsourcing costs for government projects will align with revenue, while long-term contracts are expected to boost Q4 earnings.

Management comments

The management is confident of reaching its ₹1,000 crore revenue target by FY28, backed by strong execution and a skilled team. Their strategy prioritizes revenue growth and EBITDA over margin percentages, reflecting a focused approach to business expansion and long-term sustainability.

Government Project  

C.E. Info Systems Ltd is actively pursuing government projects, previously avoided due to payment concerns. While margins are lower than in corporate and automotive sectors, management sees strategic value. Government business is expected to contribute up to 20% of revenue by year-end, impacting overall margins.

Market Position

CE Info Systems Ltd, known as MapmyIndia, dominates the in-dash navigation market with a 80% share. Its strong presence highlights its leadership in automotive navigation solutions, reinforcing its competitive edge and widespread adoption across the industry.

Company profile 

C E Info Systems Limited provides data and technology goods and platforms, including proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”), and platform as a service (“PaaS”). They are India’s top provider of innovative digital maps, geospatial software, and location-based IoT solutions.

Written by Abhishek Singh

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