My portfolio updates and investment journey

Thanks a lot for encouraging words Chaitanya and Mehul. Also thanks to all who liked my posts.

Now rationale on my second largest holding, C.E. Infosystems also called as MapmyIndia (MMI) 9% of portfolio with 31% profit. My first buy was in June 2022 at 1362 and last transaction (buy) was in June 2023 at 1203. My average cost is 1208.

If I have to imagine a technologicaly advanced country or state then:

1. I imagine 100s of drones above my head – used for delivery (food, grocery or courier?), used for security (remote surveillance of telco towers, ATMs, societies/apartments, country borders), used in Agriculture for spray of pesticides (locust control), topogrpahy mapping, land registrations, calamity relief operations and I can go on and on… What is required for this? Map led solutions and controls ?

2. I imagine sitting in car which is aware of sharp curves ahead, speed limits, battery levels, charging station proximity, alerts me on one of my friend in my vicinity (bit wild imagination though). If I reach a new place it suggests me of best restaurants, things to do etc.

3. I imagine as a owner of millions of IOT devices installed for measurements (flood, no-water, temperature, speeds, tsunami, earthquake), emergency detection or responses (fire, gas leakages, smokes, sprinklers), maintenance or repair requirements of these devices or machines/plants they survey or secure. How do I get to know locations of these sitting at once place? Geo Tagging ?

4. Before I take you in my imagination world again. I will talk about my real life example. In 2016 and 2017 when I used to take Uber from my home, 2016 prices used to be around 100rs however after a year they shot up to 250-300 range. Then someone suggested me to move 100-200 meters from my place and then book. Woaaaha eureka moment – prices were in 125 to 150 range. Now can you link this to MMI? If you don’t believe me here is the article of year 2017 Uber’s new pricing model charges some passengers more – The Economic Times and I have put an extract from the article below for your reference.

“…. someone traveling from a wealthy neighborhood to another tony spot might be asked to pay more than another person heading to a poorer part of town, even if demand, traffic and distance are the same. ”

Based on my location Uber was able to determine the in-elasticity of demand and kept on increasing the prices, however, when I moved 100-200 meters away nearing a main road where tendency of people was to take auto or bus was higher when Uber prices were higher. This meant demand was elastic in this area and price sensitive.

Now back to my point, imagine if you are a retailer (like Go Fashion), QSR chain (Jubilant Foods), taxi aggregator (Uber or Ola), food/retail aggregator (ONDC, Amazon, Zomato, Swiggy), fintech player (Bajaj Finserv already using for credit risk mapping) you can have your pricing strategy, risk assessment (credit and P&C insurance) and store opening based on Geo spatial data. GST filing is also Geo tagged.

a side note: recently I noted when I track the delivery person’s route on Zomato it shows discount coupons? is this a new use case for MMI? advertising? is this this the new real estate/metaverse?

5. My logistics business, fleet of cars and trucks are tracked from one place, my drivers use efficient navigation systems. I could see where traffic is more and what time so I can plan my timing and routes accordingly. I am aware of tolls charged so I can include that in pricing and increase transparency for my customer. Just another wild imagination – can I align RFID tags with geo movements for tracking and ensuring fakes/duplicates do not get into the system (pharma/vaccines, food export/import use cases?).

6. I as an auto OEM (Tata Motors, MG Hectors) able to monetise customer spendings happens in and around the car (hotels, resorts and restaurants). a side note: “Apple just makes its devices but it is able to take part in all the transactions happen on that device with up to 30% cut? I think there will be a time when car will be the new mobile and later a new house” .

In my imagination I touched upon drones, logistics, defense, autos, fintechs, geospatial data analytics (pricing strategy, store openings etc.), electric cars, IOT devices and millions of electronic devices (Alexa is in smart watches which uses MMI maps). All of this together and individually has not even scratched the surface.

Mr. Rohan Verma, CEO of MMI, said an year back or so (not exact words but similar), when 1 billion population started talking to each other over phone in early 2000s look at what happened, mobile phone revolution. Imagine if billions of machines started talking to each other.

MMI is first mover, has a comprehensive stack (drones, mapping, IOT devices), has a dominant market share (90%+ in auto navigation), adding new customers (Harley Davidson in Q1 2024), acquisitive (management not dormant) and only Indian players can own mapping and surveying. Foreign players can only license, Google seems to have partnered/licensed with Genesys International and Tech Mahindra.

Competition will come so need to keep an eye.

Disclaimer: I am not a financial advisor and nor a SEBI registered Analyst. The content shared here is only for learning purpose. All the names mentioned here are for example purpose. I may buy more, exit or partly sell the stock without any prior intimation.