Should You Invest in CE Info Systems Ltd (MapmyIndia)? Finology’s Take

C.E. Info Systems Limited, also known as MapmyIndia, is India’s No.1 supplier of maps for best-selling vehicles like MG Hector, Mahindra XUV700, Ola, and also for online delivery, etc. Over the past 5yrs, its sales have grown at 23% CAGR and profits at 44% CAGR.

Finology Research Desk has analysed the company this week, providing a clear verdict on whether it's a stock worth investing in or not. Learn more in this article.

What makes the Digital Mapping Industry special?

The geospatial industry, particularly in India, is experiencing transformative growth due to the convergence of digital transformation and geospatial regulations.

• High Barriers to Entry: The creation of detailed and accurate digital maps requires a substantial investment of time and capital. Companies like CE Info Systems have spent decades building their databases and technology, making it difficult for new entrants to compete. The significant upfront costs associated with data collection, processing, and maintenance create a natural barrier that favours established players.
• Data is the new Oil: Location data is critical for a wide array of applications across many industries. This fuels the demand for companies that provide digital maps, location services and geospatial data, creating substantial market opportunities.
• Growing Market: The Indian market for digital maps and location intelligence is anticipated to reach close to USD 8.9 billion by 2030, growing from USD 3.0 billion in 2023. This reflects a high Compound Annual Growth Rate (CAGR) of 16.9%.
• Key Growth Drivers: This growth is primarily driven by the increasing adoption of map and geospatial solutions by businesses, and the increasing demand for robust geospatial solutions for efficient operations and enhanced customer experiences. The growth is also fueled by increasing smartphone penetration, technological advancements in 5G, and Artificial Intelligence (AI), which are expected to revolutionize map functionalities and features. Sectors like mobility, logistics, and e-commerce are significantly contributing to the rising demand for these solutions.
• Government Initiatives: Favorable government policies in India towards indigenous players in the geospatial market provide growth opportunities for domestic companies like CE Info-Systems.
• Regulatory Developments: The Geospatial Information Deregulation Bill (2022) has been a game-changer, eliminating barriers to accessing and utilising geospatial data. This deregulation promotes innovation and supports businesses that rely on geospatial insights for better decision-making and operational improvements. Additionally, ISRO's capabilities in providing high-resolution satellite imagery have become crucial for India's research community and startups, reducing the country's dependence on foreign sources for remote sensing data.

Business Model of CE Info Systems

C.E. Info Systems Ltd is a products and platforms deep-tech company incorporated on 17th Feb 1995 by Rakesh and Rashmi Verma with the mission to build and bring the benefits of digital map data products and location-based technologies to everyone.

MapmyIndia, also known globally as Mappls, is a deep-tech digital mapping, geospatial software, and location-based IoT products and platforms company.

MapmyIndia, officially known as C.E. Info Systems, B2B (business-to-business) & B2B2C (business-to-business-to-consumer) sectors, provides advanced digital maps and location-based technologies to enterprises.

Their core offerings are built on 3 pillars: maps, IoT (Internet of Things), and drones. They provide their products through multiple delivery models, including Maps as a Service (MaaS), Software as a Service (SaaS) and Platform as a Service (PaaS).

• IoT (Internet of Things) refers to the interconnection of everyday physical devices (like vehicles, appliances, etc.) to the Internet, allowing them to send and receive data.
• GPS Navigation is the technology that uses satellite signals to help users determine their exact location and provide directions to a destination.
• ADAS (Advanced Driver Assistance Systems) are electronic systems that use sensors and cameras to assist drivers in driving safely. This includes features like automatic emergency braking, lane departure warnings, and adaptive cruise control.

The Company’s core products and services are:

• Digital Map Data Services: MapmyIndia creates and maintains a comprehensive and accurate digital map database of India, covering all towns, villages, and the entire road network. This map data is a core asset for their various products and services. Their maps include 2D, 3D, 4D, HD, and RealView formats with hyper-local geo-demographics. They also offer global maps under the Mappls platform.
   

 

Source: Annual Report FY24
 

• GPS Navigation and Location-Based Services: The company provides GPS navigation and various location-based services, using their digital map data.

• Geospatial Software Platforms: MapmyIndia develops software platforms including mGIS (a geospatial planning tool), Workmate (a workforce automation platform), and Insight (a SaaS offering), along with dynamic coding. These platforms enable businesses to integrate location intelligence into their operations.
   

Source: Annual Report FY24
 

• IoT Products and Solutions: The company offers a range of IoT (Internet of Things) devices and solutions. They provide telematics and logistics optimisation solutions, which can be embedded into new vehicles and integrated with existing fleets.
   

Source: Annual Report FY24

Core Business Segments

MapmyIndia operates primarily in two distinct market segments.
 

Source - Annual Report FY24
 

1. Consumer Tech and Enterprise Digital Transformation (C&E)

This segment focuses on providing digital map data, software platforms, and location-based services to consumer-facing tech companies, traditional businesses, and government entities.

MapmyIndia’s solutions are helping businesses in E-commerce, Quick Service Restaurants (QSR), Delivery, and Mobility sectors. By using MapmyIndia’s APIs (application programming interfaces), these industries can improve services like location-based apps, accurate address capture, and personalized customer experiences.

Customers in this segment include:

• New-age tech companies: E-commerce platforms (Amazon, Flipkart), fintech firms (PhonePe), social media apps, food delivery services (Yulu).
• Traditional businesses: Banks (HDFC Bank), telecom providers (Airtel), FMCG companies, and various industries.
• Government organizations:  central, state, and local government organisations, ministries, departments, and public sector undertakings.
   

 

Source: Annual Report FY24
 

2. Automotive and Mobility Tech (A&M)

In this segment, MapmyIndia works closely with automotive manufacturers (OEMs) and businesses in the mobility and logistics sectors. They provide smart solutions that help make vehicles more connected and efficient. These solutions include advanced technologies for navigation, driver assistance systems (ADAS), and even electric vehicles.

MapmyIndia’s offerings, like the N-CASE suite, are designed to improve the driving experience and vehicle management. This suite includes digital maps, software services (SaaS), cloud-based platforms (PaaS), and IoT devices that help track vehicles in real time. Additionally, telematics solutions help businesses optimize fleet operations, monitor performance, and enhance safety for both new vehicles and existing fleets.

Key Products

Customers in this segment include:

• Automotive OEMs: Manufacturers of four-wheelers, two-wheelers, commercial vehicles, and electric vehicles (Hyundai, MG Motor)
• Mobility companies: Companies involved in people and goods transportation, and logistics (BluSmart, Avis, Safexpress)
   

 

Source: Annual Report FY24
 

This segment saw a remarkable 22.3% revenue growth, driven by the adoption of MapmyIndia's NCASE suite across automotive OEMs. Notably, 2.5 million new vehicles, including ICE and EVs, were equipped with MapmyIndia Maps, showcasing strong industry penetration.
 

The Revenue Mix

Revenue Segment	FY24 Revenue (₹ Crore)	% of Total Revenue
Map-led Business	267.0	70.4%
IoT-led Business	112.4	29.6%
Total Revenue from Operations	379.4	100%

 

Breakdown of Revenue

MapmyIndia generates revenue from a diverse set of product segments and customer markets. Let's break it down step by step to understand where their revenue comes from.

MapmyIndia has 3 primary product segments that drive its business growth:

1. Map-led Business

This is the heart of MapmyIndia's operations, contributing a significant portion of its overall revenue.

• Revenue Contribution: In FY23, this segment generated ₹222.4 Crores, making up about 79% of the total revenue.
• Profitability: It’s a highly profitable segment, with an impressive EBITDA margin of 52.6% in FY23.
• Core Offerings: The main products in this segment involve the licensing of digital maps and related data, which are essential for a wide range of applications.

2. IoT-led Business

The IoT (Internet of Things) business focuses on devices and software solutions, including vehicle tracking systems and cloud-based services.

• IoT Devices & SaaS: This segment involves the sale of IoT devices, like vehicle trackers, and offering SaaS subscriptions for businesses.
• Growth: The IoT business has seen substantial growth, with revenue jumping by 90%, from ₹59.1 Crores in FY23 to ₹112.4 Crores in FY24.
• Profitability: This segment has also improved its profitability, with EBITDA margins increasing from just 1.7% in FY23 to 11.6% in FY24.

3. Drones

Drones represent an emerging area for MapmyIndia, and while the segment is still in its early stages, it holds potential for future expansion.

• Current Use: Currently, MapmyIndia uses drones internally for its operations.
• Future Plans: The company plans to expand its drone offerings in the future, aiming to unlock new growth opportunities.

Why We Took Interest in CE Info Systems?

We chose to cover C.E. Info Systems Ltd. (MapmyIndia) for these key reasons:

1.  Market Leadership

• Industry Pioneer: MapmyIndia was the first to create digital maps in India, with over 25 years of experience.
• Dominant Market Share: With an 80% market share in the automotive OEM sector for mapping and connected solutions, MapmyIndia leads the market.

2. Financial Strength

• Asset-Light Model: 40-45% of assets are cash and equivalents and other assets, showing efficient use of resources.
• High Asset Turnover: Fixed assets are ₹77 Cr., with an asset turnover ratio over 5X, reflecting strong operational efficiency.
• Low Debt: The debt-to-equity ratio is just 0.05%, highlighting financial stability.

3. Strong Profitability

• Rising Margins: EBITDA margins are around 40%, indicating robust profitability and operational efficiency.

What We Did Not Recommend CE Info Systems in Finology 30?

While MapmyIndia presents strong leadership in the geospatial services sector, a high-margin business model, our analysis revealed critical areas of concern that overshadow its strengths.

At Finology 30, we seek businesses whose financial fundamentals align with their growth story, ensuring long-term value creation for investors.

1. New Entity Ownership

The ownership of the "Mappls" brand has been transferred to a newly created B2C-focused entity, with Rohan Verma holding a dominant 90% stake and MapmyIndia retaining a minority 10% share. While MapmyIndia can continue using the "Mappls" brand for its B2B, B2B2C, and B2G businesses, this right is limited to a period of 5 years, after which further terms will require renegotiation.

Source: Concall Dec’24
 

Notably, the new entity will not owe any royalties to MapmyIndia for the brand usage during this period. It also lacks clarity on revenue and profit-sharing terms too.

Furthermore, MapmyIndia's 10% stake in the new company was acquired at a nominal fee of ₹10 lakhs, a move likely aimed at addressing the concerns of minority shareholders.

Investors worry about loss of control and whether the 10% stake reflects its real value.

2. Uncertain Brand Ownership

A significant concern arises from the transfer of ownership of the "Mappls" brand to a newly created entity focusing on the B2C (business-to-consumer) market. 

While MapmyIndia retains the rights to use the brand for its B2B, B2B2C, B2G (business-to-government), and B2G2C segments for the next 5 years, the arrangement introduces long-term uncertainties.

After this period, the continued use of the "Mappls" brand by MapmyIndia will depend on further discussions, raising questions about brand control and continuity. For investors, this creates a potential risk to the company’s future market positioning and operational stability.

3. At Finology Research Desk, we do not prefer companies that have their Executive Director on the Audit Committee. This is to ensure the integrity and impartiality of its operations.

According to the Charter of Audit Committee by ICSI - "[...] it is desirable that all the members of other audit comprise of independent directors and non-executive directors. The Chairperson should not chair the audit committee and no no executive director should be part of the audit committee."

However, CE Info Systems' Executive Director, Mr. Rakesh Kumar Verma, is a part of its Audit Committee.
 

 

Source: Annual Report FY24
 

Bottom Line

C.E. Info Systems Ltd. (MapmyIndia) is a leader in India’s geospatial industry, benefiting from high entry barriers, a strong digital mapping portfolio, and an asset-light business model. Its dominance in automotive mapping and solid financials highlight operational efficiency and profitability.

However, the transfer of the "Mappls" brand to a separate B2C entity raises governance concerns, potentially impacting long-term brand value and revenue stability.

While MapmyIndia excels in innovation and market leadership, governance and diversification risks warrant cautious consideration for long-term investment.

For Finology 30, our ideology has been to focus on strong business models with robust financials. So, we decided not to go ahead with CE Info Systems Ltd.

However, there are very few stocks that made it to Finology 30. Check them out here.