IGI Logo

eMudhra Limited

Rating - Subcribe

eMudhra is the largest licensed Certifying Authority (“Certifying Authority” or “CA”) in India with a market share of 37.9% in the digital signature certificates market space in Financial Year 2021.

* eMudhra has presence across all the 3 segments of Digital Trust Services, Digital Security Solutions and Paperless Transformation Solutions.  eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organizations functioning in various industries

* As part of their Digital Trust Services, eMudhra issues a range of certificates including individual/ organizational certificates, SSL/TLS certificates and device certificates (used in IoT use cases) to build a digital trust backbone

* Under their Enterprise Solutions vertical, eMudhra offers a diverse portfolio of Digital Security and Paperless Transformation Solutions complementing their Digital Trust Services business, to customers engaged in different industries, thereby making eMudhra a „one stop shop‟ player in secure digital transformation

* With more than 50 million digital signature certificates issued since inception, eMudhra caters to all kind of subscribers who use digital signature certificates for income tax return filing, filings with the Ministry of Corporate Affairs (Registrar of Companies), tenders, foreign trade, banking, railways and many other needs.

* eMudhra works closely with large government and banking customers like 20+ Public and private sector banks and state governments.

* Only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority / Browser Forum

Outlook & Valuation: Increasing threats to data security and the prevalent trend of working from home during the ongoing pandemic have opened up new opportunities for digital security and the digital signature solutions industry. Digital identity is foundational to the growth of enterprises in the era of digital transformation. The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term. The company is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe. eMudhra is the only Indian company to be accredited to Webtrust which makes their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries. As per Frost and Sullivan‟s report in RHP, the industry is expected to grow in the mid-teens globally in the next five years and India will outperform other geographies. However, there are concerns with the company like highly competitive industry, entering into new geographies and products in which the company doesn‟t have any prior track record, subject to a lot of regulations, and complex business to understand. Further the company's security measures may be compromised in the future, leading to a loss in reputation and incurring significant liabilities. And, at a P/E of 49.5 based on annualized FY22 EPS, the company has priced in most of the positives. Hence, we recommend this issue for a long term time horizon.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.swastika.co.in/disclaimer

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer