Anyone know the reason behind fall in revenue for the jun and sep quarter?. There’s slight drop in margins also.

TL;DR: In my view, MapMyIndia’s stock is currently slightly cheaper than it has been for some time.

• Revenue Potential: Management has guided for a revenue target of ₹1,000 crore, which I believe is quite achievable given their market position.
• Market Leader: MapMyIndia is the leading navigation company in India, embedded in many vehicles and GPS systems. While Google Maps has more users and offers broader location data, I believe it focuses more on general location services rather than navigation. As a result, many users, myself included, are increasingly choosing MapMyIndia for navigation.
• Recent Developments & Future applications: MapMyIndia has integrated new features like Zoomcars into their mapping application, which presents several exciting use cases:

1. Hyundai uses MapMyIndia’s platform to help customers locate charging stations.
2. Burger King (USA) has developed a creative feature encouraging users to visit McDonald’s while ordering from Burger King, showcasing innovative applications of geolocation.
3. The recent integration of Zoomcar if works out, makes a room for other platforms to integrate into Mappls.
4. They are working on a 4D visualization tool that could have applications in gaming and driving simulations.
5. MapMyIndia offers customized mapping solutions for businesses, filling a niche that larger companies may overlook.
6. The shift toward electric vehicles (EVs) suggests that many vehicles will likely come with integrated navigation systems, increasing demand for services like MapMyIndia’s.
7. There are also opportunities for government applications, which could further enhance revenue.
8. Additionally, a friend mentioned a speculative blockchain-based mapping application that rewards users for providing real-time traffic data, which I find intriguing. Though not related to Mappls. It’s just interesting, so put it here.

• Competition Landscape: There is ongoing discussion about breaking Google’s monopoly in the U.S., which could create opportunities for smaller players. However, I believe that MapMyIndia currently faces limited competition in its core navigation business.

• Concerns About Ola: I have reservations about Ola, particularly regarding the Mr. CEO. My biggest concern is He Lies. Let’s see everything –

1. Their food delivery service has struggled.
2. The Ola Cab business remains unprofitable. Although all such businesses are unprofitable.
3. While Ola Electric has the highest market share in India, quality issues could hurt its popularity over time, and their market share is primarily due to the reach of their OLA App.
4. I found a rumor claiming “Krutrim uses ChatGPT,”. I did some digging and found – it actually relies on Google, raising credibility issues. To be precise –
5. Ola Maps likely lacks legitimacy as a competitor. They seem to have used MapMyIndia’s data without acknowledgment, relying on the OpenStreetMap API while “failing” to inform the public.
   Overall, I don’t view Ola as a significant competitor to MapMyIndia in the navigation sector. Or anyone else for that matter.

Acknowledging Risks:

• Management Decisions: Rakesh Verma recently sold a portion of his stake. While this isn’t unusual for company promoters, it’s something to watch.
• Valuation Concerns: The stock may appear overpriced based on its PE ratio, but I believe it is competitively priced compared to other Indian companies. Market fluctuations may lead to further price corrections.
• Potential Conflicts: The launch of their consultancy business, ClarityX, raises some concerns about potential conflicts of interest. However, management has indicated that revenue from this venture will still benefit MapMyIndia. I would still keep an eye on this one.

ie – I like the Stock and the Company.

My conversation with “KRUTRIM” or “Google Dialogueflow CX”?

Additionally, I have seen a minor glitch on their website, where its reply accepts that it uses OpenAI’s chatGPT and quickly after the glitch, that text is removed automatically and new reply comes. It could mean that the original rumour is right -“They do use OpenAI”. They might be using both of them.

Let me know if you have questions.

I saw 2 reasons for the share price drop.

1. Their operating cost has got increased due to the red sea crisis. They are not using the suez cannel to reach Europe instead they go around Africa to avoid major damage.
2. Promotor is continuously selling their stake. This is a major red flag.