Consistent Rates

Rates Unchanged

The Reserve Bank of India’s (RBI) policy outcome was largely on the expected lines. The Monetary Policy Committee (MPC) did not tinker with the interest rates. Most importantly, they will maintain their “accommodative” stance. ✅

Here’s RBI Governor Shaktikanta Das with more:

Overall, the recovery that had been interrupted by the second wave of the pandemic is regaining traction, but it is not yet strong enough to be self-sustaining and durable. This underscores the vital importance of continued policy support. 

As always, there’s more to RBI’s policy than just interest rates. RBI continues to see inflation at 5.3% for FY22. They also maintained their growth forecast at +9.5% for FY22. However, they lowered the Q3 growth forecast to +6.6% from +6.8%. A stronger-than-expected growth rate in Q2 led to RBI maintaining its FY22 growth forecast. 🤞

OK, so here’s what matters. Investors welcomed the move by MPC. Experts think the policy will boost sectors like auto and real estate. And, the best part? They see this to be a great time to remain invested in the markets. 🤑 The Street gave a big thumbs up, as Nifty and Sensex, both climbed +1.7%. 👊

IPO Mapped

MapMyIndia’s parent company, CE Info Systems’ IPO will open on Dec 9. The price band is fixed at Rs 1,000-1,033 per share. The company plans to raise Rs 1,040 cr from the markets. 💰

Founded in 1995, CE Info Systems is one of the early movers in India’s digital mapping space. It is a leading provider of maps, geospatial software and location based Internet of Things (IoT) services. The company has built maps covering +98% of India’s road networks for its MapMyIndia brand. 🛣️ It serves both the B2B and B2C users. They have over 2,000 enterprise clients like PhonePe, Bharti Airtel, Flipkart and MG Motors. 👍

Financial Snapshot:

• FY21 Revenue: Rs 152 cr; +2% YoY
• FY21 Net Profit: Rs 59 cr; +1.56X YoY

The Indian government recently tweaked its geospatial data policies. These new rules mean global companies like Google and Apple can source their map data from Indian players, BUT they cannot own the data themselves. Sounds like good news for MapMyIndia! Fun fact: Apple Maps for India is already powered by MapMyIndia. 🥳

Wait, there’s more. The market for digital maps and location-based intelligence services in India is expected to touch Rs 31,160 cr by 2025 (vs Rs 12,614 cr in 2019). Rising tech adoption, and favorable policies are its key growth drivers. 📈

Here’s the summary for those looking at investing. MapMyIndia’s key positives are a comprehensive local database and low operating costs. ✌️However, they’re highly dependent on the auto sector and regulations. 

PS: In the latest episode of Stock Room Sunday, Saket Mehrotra said he was planning to apply for the IPO. ✅ ICYMI, here’s a link to the episode: Stock Room Sunday

Making Moves

Brightcom, an adtech company acquired the digital marketing firm MediaMint for Rs 566 cr. 💸

Big picture: the Indian advertising industry is on an upswing. Reports indicate that the domestic advertising industry will grow 20% this year. 💪 The uptick is also seen at the global scale. The global advertising market is expected to touch $1 trillion in 2026 (vs $640 million in 2020). And, Brightcom wants to cash in on the growth momentum. 🤑

Here’s how! MediaMint has notable clients like Pinterest, New York Times, and Netflix. It offers complete marketing support to its clients from managing ads, campaigns and even creative services. Brightcom, formerly known as YBrant Digital, hopes that this experience will further strengthen its team. It plans to chase new opportunities and win some clients. 😌

Brightcom is no slouch either. It is one among the Fortune 500 India companies. British Airways, Coca-Cola, Hyundai Motors, ICICI Bank are its clients. Nevertheless, the stock got excited post the news as it jumped +5%. 📈