Few of my takeaways from Q1 FY25 of MapmyIndia

MapmyIndia kicked off fiscal year 2025 with a solid start, posting 13.5% revenue growth to reach ₹101 crores. The company’s Map-led business contributed ₹78 crores, while the IoT-led segment added ₹23.5 crores. Despite a dip in hardware sales, the company compensated with increased service revenues. Management exudes confidence about achieving their ₹1,000 crore revenue target by FY27-28, buoyed by a hefty ₹1,300 crore open order book.

𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐁𝐥𝐮𝐞𝐩𝐫𝐢𝐧𝐭:

The company is doubling down on innovation, particularly in 3D mapping, high-definition cartography, and near real-time updates. They’ve also launched an AI-driven data analytics and consulting offering to capture more wallet share from existing clients. MapmyIndia is cautiously exploring international markets, with management hinting at “serious announcements” in the coming quarters.

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬:

There’s a noticeable shift towards premiumization in the automotive sector, with increased adoption of MapmyIndia’s advanced e-horizon, ADAS, and EV software solutions. The company is also seeing traction in 3D digital twin mapping for urban planning and flood modeling.

𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐓𝐚𝐢𝐥𝐰𝐢𝐧𝐝𝐬:

Government initiatives like cadastral mapping of villages and the push for digitization of land records are creating new opportunities. The automotive industry’s move towards connected and electric vehicles is another positive trend for MapmyIndia’s solutions.

𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐇𝐞𝐚𝐝𝐰𝐢𝐧𝐝𝐬:

Intensifying competition, particularly from tech giants and new entrants like Ola Maps, could potentially squeeze margins or market share in certain segments.

𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫/𝐀𝐧𝐚𝐥𝐲𝐬𝐭 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬:

Analysts raised eyebrows over the 42% year-on-year decline in IoT hardware revenue. Management attributed this to a temporary funding constraint at their subsidiary Gtropy, which has since been resolved. They assured that IoT business growth remains on track.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞:

MapmyIndia faces competition from global players like Google Maps and newcomers like Ola Maps. Management downplayed these threats, emphasizing their deep local expertise, agility, and value-based pricing approach. They believe the increased “noise” in the market will actually benefit them by raising awareness about digital mapping solutions.

𝐅𝐮𝐭𝐮𝐫𝐞 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐢𝐨𝐧𝐬:

While reiterating their ₹1,000 crore revenue target for FY27-28, management shied away from providing specific quarterly guidance, urging investors to view their business on an annual basis due to potential lumpiness in revenue recognition.

𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐃𝐞𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭:

The company plans to invest heavily in product innovation and marketing to drive growth. This includes sponsorships like the recent India-Sri Lanka ODI series to increase brand visibility.

𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 & 𝐑𝐢𝐬𝐤𝐬:

Emerging opportunities include 3D digital twin mapping for urban planning and expansion into international markets. However, the company faces risks from intensifying competition and potential pricing pressures in certain segments.

𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐥𝐢𝐦𝐚𝐭𝐞:

The regulatory landscape appears favorable, with government initiatives in land digitization and urban planning creating new opportunities for MapmyIndia’s solutions.

𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐏𝐮𝐥𝐬𝐞:

Management reported positive customer reception for their advanced automotive solutions and 3D mapping capabilities. They also highlighted growing interest in their AI-driven analytics offerings.

Disclaimer: This is a general analysis and does not constitute financial advice.

I used to do that pre covid ( ie high allocation in top 5-7 stocks ). However, in those days … my circle of knowledge was limited to Banks, NBFCs, FMCG, retail and Auto sector

Post COVID, most of these sectors have been laggards and I had to work hard to develop new areas of knowledge like – Pharma, Hospitals, Diagnostics and Manufacturing companies. That took time and I was not sure of placing bigger bets

Now that I think I have worked on a far larger variety of sectors, I think I need to start consolidating again ( ie … having 5 pc kind of portfolio weight in at least top 10 of my bets )

Ur feedback is welcome and I am gonna start working towards concentrating my bets … surely ( the time has come ). The only portfolio stock where my holding is > 5 pc is Neuland Labs

Some prime targets where I Intend to take my holdings higher include –

Group -1 – ( higher confidence ) –

Senco Gold
Nippon AMC
HDFC AMC
Mankind Pharma
Eris Lifesciences

Group – 2 – ( will wait for continued execution before going full throttle ) –

Usha Martin
Alkem Labs
Garware Hi Tech Films
Zydus Lifesciences
Shaily Engineering plastics
EIH
Dodla Dairy
Innova Captab
Xpro India

To answer ur last query – Yes, I am a full time investor. I quit my full time Job about an year back

More carefully watch it, even for 8 scrips-13 out of 1 millions users who has 8 scrips have 6 scrips grounded!! We always assume we are not those unfortunate 13 out of 1 Million!

This is the risk one has to live with.

Second thing is this is based on historical evidence!

Thanks for reading this. I will explain to you in a simple way. This is for investors not for day traders.
See this illustration: A user has 3 Large cap scrips in his/her account

1. Scrip1 Units: 10 closing price: 550 Holding value : 5500
   2 scrip2 units 10 closing price : 300 Holding value : 3000
   3 Scrip3 units: 10 closing price:150 Holding value :1500

Assume it is from Large cap, total number of scrips held by user = 3, from the table given for 3 scrips – p1=0.2916 (29.15%), p2=(0.02 or 2%)
If market would correct, User has chance that 1 scrip ( anything p>=0.05 at 95% confidence level) will be a black sheep
(don’t assume that fundamentals are good-even Lehman brothers and Jet Airways were excellent scrips 15 minutes before crash happened)
Hence we don’t have any bias here about scrip quality-Every investor would always assume all scrips he selected are fantastic!
But these probabilities are evidence generated from nse historical data for large cap scrips.
It means highest holding scrip1 if it becomes black sheep, User would lose 95% of its value from peak value. Say for scrip1 it is 50 Rs after correction user will lose 5000 Rs in Scrip1! This is what user has to foresee after correction!

It means user with 3 scrips there is 24% chance his 1 scrip gets grounded and 95% chance his 2 scrips survives.

This is the essence of diversification and balancing portfolio! It becomes a survival game when market corrects!

Compare this with user having 8 scrips: This user has 38.7 % chance his 1 scrip gets grounded, + 14% chance his second scrip gets grounded, He has 95% chance that 6 out of 8 scrips will survive.

I have observed a significant trend where the majority of industry players are concentrating their efforts on the high-premium segment, resulting in a noticeable expansion of their production capacities. Interestingly, even companies that have traditionally focused on high-volume, lower-cost products are now venturing into the premium market. However, it’s crucial to recognize that while the supply in this segment is rapidly increasing If the demand isn’t keeping up at the same rate. This imbalance between supply and demand suggests that the industry might face a period of consolidation in the medium term