CE Info Systems shares tank 7%; JM Financial downgrades to 'reduce' post Q1

JM Financial downgraded CE Info Systems' stock to 'reduce' and revised EPS estimates down by 1-7 per cent, factoring in the miss in Q1 FY27.

CE Info Systems share price: Shares of CE Info Systems, the parent company of MapmyIndia, plunged sharply by 7 per cent in intraday deals on Wednesday, August 5, after earnings miss for the first quarter of the financial year 2026-27 (FY27), which prompted domestic brokerage JM Financial to cut earnings estimates and downgrade the stock. 

 

CE Infosystems share price opened at Rs 1,088.95 as against the last close of Rs 1,134.40. It soon slumped to the day's low of Rs 1,054, shedding as much as 7.08 per cent. The stock has nearly halved from its 52-week high of Rs 2,000 and remains 37 per cent lower for the year so far. 

 

As of 10.42 AM, CE Info Systems' shares traded at Rs 1073.10, down 5.40 per cent. 

 

CE Info Systems Q1 results

For the quarter ended June 2026, the company's profit after tax (PAT) rose 8.6 per cent year-on-year (Y-o-Y) to Rs 49.7 crore from Rs 45.8 crore in the corresponding quarter last year. 

 

The revenue growth stood at 15 per cent Y-o-Y to Rs 139.7 crore while earnings before interest, tax, depreciation and amortisation (Ebitda) was flat at 0.4 per cent to Rs 56.1 crore. Margins, however, took a beating and slipped to 40.2 per cent from 45.9 per cent a year ago.   Also Read | Nykaa falls 3% despite 226% Q1 profit growth: Should you buy or skip?

 

"Our performance reflects the continued strength and moat of our products, platforms, APIs and solutions, alongside disciplined execution and continuously growing trust of customers across Automotive, Enterprise and Government segments," said chairman and managing director Rakesh Verma. 

 

Why JM Financial downgraded CE Info Systems

JM Financial said that MapMyIndia's revenue and Ebitda margin missed estimates as they were impacted by a Rs 4 crore receivable write-off by a government customer and a higher hardware mix within IoT. 

 

Growth trajectory remains anchored on the open order backlog of Rs 1,750 crore, which was up 17 per cent Y-o-Y. IoT-led revenue grew 75 per cent, with hardware revenue up 224 per cent. 

 

Management retained EBITDA marign target of 35 per cent-plus. 

 

"We raise our target multiple to 22x FY28E EPS (from 18x) given healthy order backlog and resulting medium term growth visibility, however, near term visibility remains soft," analysts at JM Financial said. The brokerage downgraded the stock to 'reduce' and revised EPS estimates down by 1-7 per cent, factoring the miss in Q1 FY27 and reduce near-term visibility. 

 

It revised the target price for the counter to Rs 1,040 (from Rs 870 earlier).

 

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