eMudhra stock recovers slightly after sharp fall over security concerns

eMudhra shares have recovered 11% in three sessions after a sharp selloff over security concerns, with analysts expecting limited impact on the company's long-term earnings growth.

Shares of eMudhra have staged some recovery after a sharp correction triggered by concerns over security lapses at the digital signature certificate provider.  

The stock, which is now down nearly 44 per cent in the past month, has recovered some ground, as analysts said that this incident may not have a major impact on its long-term earnings growth. Some investors are making a deep-value play, hoping for a recovery in the stock price. 

The stock ended 2.17 per cent higher at ₹353.45 on Thursday, against the Nifty 500’s gain of 1 per cent. On October 21 and 22, the shares had hit lower circuits, falling 20 per cent on both days. eMudhra shares have recovered 11 per cent in the last three sessions. 

 

eMudhra faced security concerns after weak private keys were found in some of its digital certificates. The company later announced plans to exit its global SSL/TLS (Secure Sockets Layer/Transport Layer Security) business, which contributed around 1 per cent to its revenue. 

“The recent eMudhra incident, involving the public exposure of private keys, raised serious security concerns, as it could potentially enable attackers to issue fraudulent website certificates,” said Arijit Malakar, equity research analyst at Ashika Stock Broking. Malakar, however, added that retail interest has begun recovering following the sharp stock correction. 

“eMudhra’s underlying business remains strong, supported by its leadership in India’s eSign market and significant overseas presence. We believe the incident is unlikely to materially impact the company’s long-term earnings potential, which remains robust,” he said. 

Harsh Thakkar, research analyst at Samco Securities, said the key risk was reputational damage spreading to eMudhra’s enterprise and overseas businesses, which together account for about two-thirds of its revenue. 

 

“eMudhra says its India signature and eSign services are unaffected. Its financial year 2026-27 (FY27) guidance of 18 per cent organic revenue growth and 25 per cent profit after tax (PAT) growth was issued back August, before the incident. The second quarter results on November 4 will be the test,” Thakkar added.