eMudhra IPO Review, Broker Views, Subscribe or Avoid

eMudhra IPO DetailseMudhra IPO GMPAllotment Status

eMudhra IPO opens for subscription on 20 May 2022 and is scheduled to close on 24 May 2022. As part of a comprehensive eMudhra IPO review, we have compiled the major strengths and risks of the company as well as broker recommendations.

eMudhra is India’s largest licensed Certifying Authority (CA) with a market share of 37.9% in the digital signature certificates market space in FY2021. The company provides Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. As part of its Digital Trust Services, the company issues a range of certificates including individual/organizational certificates, SSL/TLS certificates and device certificates (used in IoT use cases) to build a digital trust backbone.

Having issued more than 50 million digital signature certificates since inception, the company caters to all kind of subscribers who use digital signature certificates for income tax return filing, filings with the Ministry of Corporate Affairs (Registrar of Companies), tenders, foreign trade, banking, railways and many other needs. 

eMudhra IPO Review – Strengths

  • Largest licensed Certifying Authority in India
  • One stop shop solution provider in secure digital transformation and well-positioned to capture the favourable industry dynamics in India and globally
  • Technology certifications, accreditations and membership in international bodies
  • Technology-backed infrastructure to support quality and security of services and solutions
  • Diverse, longstanding and growing customer base
  • Partnerships with leading Indian and global channel partners and enterprise solution partners
  • Experienced promoter, board of directors and senior management team

eMudhra IPO Analysis – Risk Factors

  • Plans to expand operations in geographical areas where it has limited history
  • Significant investment (INR152.7 million) in the United States of America through eMudhra Inc
  • Highly dependent on technology in carrying out its business activities
  • Dependent on top 5 channel partner for a significant portion (24.65% in FY2021) of revenues
  • Significant portion of revenues (12.14%) from top 5 customers

eMudhra IPO Analysis – Financial Performance

 FY2019FY2020FY20219M FY2022
Net income17.
Margin (%)16.914.612.922.7
Figures in INR crore unless specified otherwise

eMudhra Valuations & Margins

FY2019FY2020FY20219M FY2022
PE ratio97.59 – 102.81
RONW (%)23.0518.0716.2621.79
ROCE (%)32.628.130.541.5
EBITDA (%)31.8127.7331.0036.41
Net Debt/Equity0.260.310.230.22

eMudhra IPO Review – Broker Calls

Angel One – Neutral
Arihant Capital – Subscribe for high risk
Ashika Research –
Asit C Mehta –
BP Wealth – Avoid
Canara Bank Securities – Avoid
Choice Broking – Subscribe with caution
Elite Wealth –
GEPL Capital – Subscribe for long term
Hem Securities – Subscribe
ICICIdirect –
Jainam Broking – Subscribe
KR Choksey –
LKP Securities –
Marwadi Financial Services – Subscribe
Nirmal Bang –
Reliance Securities – Not rated
Religare Broking –
Samco Securities – Subscribe for long term
SBI Securities – Subscribe for long term
Share India Securities –
SMC Global – 2/5
Swastika – Subscribe for long term
Ventura Securities – Subscribe


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