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Indigenous play on the geospatial vertical; initiating with a Buy

MMI is the leading digital mapping operator in India. Its B2B and B2B2C focus makes it less visible vs B2C focussed Google map. Yet, we feel that the revenue model based on fees charged per period (on per vehicle, per asset, per transaction, per use case, per user) is superior to Google (only advertisement based). In the context of business in India, MMI has clear advantages, not easily replicable, and which prove to be high barriers to enter the map and navigation business in India. Its diverse use of maps across a variety of platforms, products and applications is much more than those of its peers (because of this ~90% of its larger customers generating more than ~80% of revenue have been retained over the years). We estimate 39.2%/42% revenue and EBITDA CAGR over FY22-FY24 and initiate coverage on MMI with a Buy rating and a TP of Rs.1,700 (valued at 50x FY24 earnings).

Strong in B2B and B2B2C in India. With mounting digitisation, data being captured has grown considerably. More than 80% of this data has location information, still unutilised. MMI provides advanced digital mapping, spatial and image analytic capabilities to companies to better use market and demographic data, and make informed decisions. It offers proprietary digital MaaS, SaaS and PaaS to companies in automotives, telecoms, banking, food and beverages, and payments, etc.

Products have ever-expanding uses. The company’s platform provides extensive and comprehensive functionalities and ever-expanding uses, incl. mapping, location and navigation, geospatial data analytics, GIS and AI, GPS tracking and IoT-based fleet-management, logistics optimisation and workforce management, drone-based solutions, developer APIs, an N-CASE solutions suite for automotive & mobility tech (A&M), and consumer tech and enterprise digital transformation (C&E).

Risks: Competition from large global operators such as Google; high clientconcentration (80% of its revenue arises from 35 clients).

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