eMudhra, the leading licensed certifying authority in India, has witnessed a stellar surge in its stock price, climbing a fabulous 59.5% in the month of May alone. From ₹214.85 apiece, the stock zoomed 105% in just two months to record a new all-time high of ₹440 apiece in today's trade.
The company shares, which went public a year ago, enjoyed a decent debut, opening at ₹270 apiece, which was almost 5.5% higher than the issue price of ₹256. But, it closed the first day with just a 0.7% gain at ₹259.9.
Notably, within less than three months of its listing, the stock advanced by 48% in difficult market conditions to ₹379.30 apiece. At the current market price of ₹434 apiece, the stock is trading 69.5% higher than its IPO price.
In the current year so far, the stock has yielded a return of 37.34%. In contrast, the BSE Smallcap index has experienced a gain of 6.4% over the same period.
eMudhra Limited ("eMudhra") is a wholly owned subsidiary of 3i Infotech Limited. The company is engaged in the business of providing digital trust services and enterprise solutions to individuals and organizations functioning in various industries.
The company has strong digital signature certificate expertise and is the only Indian company to be directly recognised by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe, allowing it to sell digital identities to individuals and organizations worldwide and issue SSL/TLS certificates for website authentication.
In addition, it is the only Indian company to be admitted as a member of the European Cloud Signature Consortium as well as the Certifying Authority/Browser Forum, a global forum that governs the use of SSL and TLS certificates.
For the March-ending quarter, the company reported a robust 71% surge in revenues to ₹77 crore, ending FY23 with a total revenue of ₹249 crore, an increase of 36% YoY.
The strong revenue surge was primarily attributed to the company's enterprise solutions segment, which benefited from incremental cross-sales, expansion into international markets, and successful acquisition of new customers.
The EBITDA reached ₹24 crore in Q4, reflecting an increase of 33% YoY and 14.30% QoQ. Its net profit for Q4 came in at ₹16 crore, showing a growth of 45.45% YoY and 6.70% QoQ.
Overall, the company ended FY23 with a net profit of ₹61 crore, a surge of 49% over FY22's net profit of ₹41 crore.
The promoters own a 57.7% stake in the company, while foreign portfolio investors and domestic institutional investors each own 4.2% and 10.7%, respectively. Regular shareholders own 27.5%, Trendlyne data showed.