eMudhra hits new high, zooms 57% in one month post Q4 results

Shares of eMudhra hit a new high of Rs 419, up 3 per cent on the BSE in Tuesday’s intra-day trade. In past one month, the stock of IT enabled services has zoomed 57 per cent after the company reported a good set of numbers for the quarter ended March (Q4FY23). In comparison, the S&P BSE Sensex was up 3.5 per cent during the same period.

The company made its stock market debut on June 1, 2022. Currently, it quotes 64 per cent higher as against its issue price of Rs 256 per share.

eMudhra operates under the guidelines set by the Information Technology Act. eMudhra caters to all kinds of subscribers who use Digital Certificates for Income Tax, MCA (ROC), Tenders, Foreign Trade, Banking, Railways and many other needs. eMudhra renders information technology enabled services to retail consumers apart from catering the requirements of Government, Large corporate and Banking Sectors.

he company is among the No.1 brands in India for issuing Digital Signatures Certificates (DSC) and is an established player catering the needs of Indian consumers eMudhra certificates can be used and relied on in any online or offline applications.

For Q4FY23, eMudhra had reported a strong 61.3 per cent year-on-year (YoY) growth in its adjusted profit after tax (PAT) at Rs 18.37 crore, against Rs 11.39 crore in Q4FY22. Total income jumped 73.9 per cent at Rs 789.93 crore. Earnings before interest, taxes, depreciation and amortization (Ebitda) grew 40.6 per cent YoY at Rs 25.90 crore, margin stood at 32.8 per cent.

The company said strong growth led by Enterprise Solutions; change in model for Trust Services resulting in diversification and better quality of revenue for trust services. Strong Ebitda and PAT growth and margins maintained despite increased investment into overseas market growth and ESOP expenses of Rs 2.57 crore, it added.

Meanwhile, on May 3, eMudhra had informed that credit rating towards the company’s funded and non-funded based limits have been downgraded by Brickworks rating from BWR BB-/Stable to BWR/B+/stable under the issuer not cooperating category.

The company said it feels that the above downgrade is of no relevance as the company’s latest rating issued by ICRA which is ICRA A2 and valid till September 28, 2023, and the outlook on the long-term rating is revised to Positive from Stable.