IGI Logo

* Company background: eMudhra is the largest licensed certifying authority in India with a market share of 37.9% in the digital signature certificates. They are engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries.

* One stop shop solution provider: The company is a one stop shop player in secure digital transformation to provide a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solutions.

* Business division: The company’s business is divided into Digital Trust Services and Enterprise Solutions. It offers a wide 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 Enterprise Solutions vertical, they offer a diverse portfolio of digital security and paperless transformation solutions, complementing their Digital Trust Services business.

* Certifications, accreditations and membership in international bodies: They are a registered certifying authority with the Controller of Certifying Authorities and are the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority/ Browser Forum, a global forum that governs the use of SSL/TLS certificates. They are the only Indian company to be accredited by Webtrust, thereby making digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries. Besides, their products are compliant with the quality standard of ISO 9001 and are certified by the applicable certification body which is encouraging.

* Portfolio of renowned customers: They have marquee customers in private as well as in public sectors. The company caters to customers operating in various industries such as banking, eGovernment, automotive, IT, consumer durables, etc. Names include Infosys, Hindalco, Mashreq Bank, Baud Telecom Company, Cholamandalam MS Gen. Ins., Thales DIS CPL India Pvt., Larsen & Toubro Infotech, DB Schenker, JSW Steel, Bharti AXA Life Ins., TCS, etc. Going ahead, eMudhra proposes to enhance their presence in various industries such as manufacturing, logistics, healthcare etc. They also plan to serve new age industries which are significantly dependent upon cyber security which would therefore require their trust and digital signature services.

* Financial: eMudhra financial performance has been strong over FY19-21 and its revenue/PAT is growing at a CAGR of 14% and 21%.

* Key Risk: i) Digital security and paperless transformation market is highly competitive. ii) Highly dependent on data centres and technology.

* Outlook & valuation: eMudhra has strong brand recognition, decent market share in digital services in India (17.8%) and healthy relationship with channel partners. Further, its plan to innovate products, grow in international markets as well as expand customers base will drive future growth. On the valuation front, at an upper price band of Rs 256, the company is trading at PE of 44x basis FY22 annualized EPS.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

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