WHAT’S DRIVING THIS MULTIBAGGER STOCK’S 245% RETURN IN A YEAR?
Published By Moushumi Mahanta | 02 May, 2024
Emudhra, India's leading certifying authority, has seen a remarkable surge in stock value, with shares rising from ₹214 to ₹738.40 in a year, delivering substantial returns.
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The company's annual performance witnessed a 42.72% increase in CY23, with a remarkable 64% growth in the first four months of the current year.
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Emudhra's shares, listed in June 2023 at ₹257.9, are now trading 189% higher than its IPO prices.
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A subsidiary of 3i Infotech Limited, Emudhra specializes in digital trust services, recognized by major browsers and software companies worldwide.
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Its Q4 FY24 revenue surged by 49.6% YoY to ₹3800.4 million, with an EBITDA margin of 30.6% and a net profit of ₹763.5 million.
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The Enterprise segment, constituting 70% of total revenue, has been the primary revenue driver, expanding notably in the US and Europe markets.
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Emudhra's focus on enterprise solutions like emSigner and expansion into new products like eSign and emDiscovery has garnered strong demand globally.
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Centrum Broking expects continued revenue growth from Emudhra's enterprise businesses, projecting revenue, EBITDA, and PAT to grow at 38.0%, 49.2%, and 50.8% over FY24–FY26E.
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The brokerage revised its target price higher to ₹832 apiece, reflecting sustained long-term growth potential, although it adjusted its rating from 'buy' to 'Add' due to recent price spikes.
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A favourable outlook for the Trust business and increased realization in channel sales are expected to contribute to Emudhra's future growth trajectory.