MAPMYINDIA - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.2
| Stock Code | MAPMYINDIA | Market Cap | 6,931 Cr. | Current Price | 1,267 ₹ | High / Low | 2,167 ₹ |
| Stock P/E | 46.1 | Book Value | 157 ₹ | Dividend Yield | 0.27 % | ROCE | 27.6 % |
| ROE | 19.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,525 ₹ | DMA 200 | 1,685 ₹ |
| Chg in FII Hold | -0.73 % | Chg in DII Hold | 0.88 % | PAT Qtr | 18.5 Cr. | PAT Prev Qtr | 50.4 Cr. |
| RSI | 30.2 | MACD | -97.7 | Volume | 1,04,504 | Avg Vol 1Wk | 83,996 |
| Low price | 1,230 ₹ | High price | 2,167 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.01 |
| 52w Index | 3.99 % | Qtr Profit Var | -40.9 % | EPS | 27.6 ₹ | Industry PE | 46.8 |
🔍 Analysis: MapMyIndia shows strong efficiency metrics with ROCE at 27.6% and ROE at 19.8%, supported by EPS of 27.6 ₹. Debt-to-equity is very low (0.01), reflecting a solid balance sheet. Valuation is fair with a P/E of 46.1, close to the industry average of 46.8. However, quarterly PAT declined sharply (18.5 Cr vs 50.4 Cr), raising concerns about earnings consistency. PEG ratio of 1.51 suggests moderate overvaluation relative to growth. Current price (1,267 ₹) is near its 52-week low (1,230 ₹), well below DMA supports (50 DMA at 1,525 ₹, 200 DMA at 1,685 ₹), showing bearish momentum but offering accumulation potential. RSI at 30.2 indicates oversold conditions, which may trigger a rebound.
💡 Entry Zone: Ideal entry would be in the 1,230–1,300 ₹ range, aligning with oversold RSI and 52-week low support. Accumulation at these levels offers margin of safety for long-term investors.
📈 Exit / Holding Strategy: If already holding, maintain position for 2–3 years given strong ROE/ROCE and low debt. Consider partial exit near 1,900–2,000 ₹ resistance if valuations stretch without earnings recovery. Long-term investors should monitor quarterly profit trends and PEG ratio alignment for sustained compounding.
🌟 Positive
- Strong ROCE (27.6%) and ROE (19.8%)
- EPS at 27.6 ₹ supports valuation comfort
- Low debt-to-equity (0.01), excellent balance sheet
- DII holdings increased (+0.88%)
- RSI at 30.2 indicates oversold zone, potential rebound
⚠️ Limitation
- Quarterly PAT declined sharply (18.5 Cr vs 50.4 Cr)
- PEG ratio (1.51) signals moderate overvaluation
- Dividend yield modest (0.27%)
- Stock trading below DMA supports, showing weak momentum
📉 Company Negative News
- Profit decline (-40.9% variation)
- FII holdings reduced (-0.73%)
📈 Company Positive News
- Strong efficiency metrics (ROE, ROCE)
- DII stake increased, showing domestic confidence
- Valuation close to industry average, offering comfort
🏭 Industry
- Industry PE at 46.8, in line with MapMyIndia’s valuation
- Digital mapping and geospatial services sector benefits from rising demand in navigation, logistics, and smart mobility
✅ Conclusion
MapMyIndia is a moderate candidate for long-term investment. Strong ROE, ROCE, and low debt support fundamentals, but sharp profit decline and modest dividend yield limit rating. Ideal entry is near 1,230–1,300 ₹ for margin of safety. Existing holders should maintain for 2–3 years, with partial exit near 1,900–2,000 ₹ resistance if valuations outpace earnings recovery.