Recently listed eMudhra has rallied 35% in a week; Up 33% than its IPO price

eMudhra Limited shares have zoomed 34.79% in the last week, from ₹253.50 to ₹341.70. The rally in the stock price came on the back of a solid improvement in its financials.

In the last five trading sessions, the stock is up by 34.79%, with an average rise of 6.95% in each trading session. eMudhra made its stock market debut on June 01, 2022. The initial public offer (IPO) received a decent subscription, with the issue subscribed at 2.72 times. The qualified institutional buyers (QIBs) category was subscribed to 4.05 times. The retail investor category was subscribed to 2.61 times and the non-institutional investor category was subscribed to 1.28 times.

Currently, it is trading 33.20% higher than its issue price of ₹256/share. The stock was trading at ₹353.80 at 01:30 p.m., up 3.77 per cent from its previous close of ₹341.10. At the prevailing price, the stock traded at 60.47 times its trailing 12-month EPS of ₹5.86 per share and 17.374 times its book value.

eMudhra reported a year-on-year (YoY) increase in consolidated profit after tax (PAT) of 44 per cent to 13.71 crore.

The revenue for the quarter stood at ₹52.8 crore, a 20.21 per cent jump over the corresponding quarter last year. The company reported revenue of ₹44 crore in Q1FY22. The operating profit margin in the June quarter was 40.1 per cent, compared to 35.2 per cent in Q1FY22.

The company is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. And eMudhra 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.

In its enterprise solutions division, the company enjoys a competitive advantage, which will help it sustain its growth momentum further. And it is the first Indian company in the digital signature business to be directly recognised by renowned browsers and document processing software providers. As countries move toward digitalization, the company will be able to earn a considerable market share in the future.

In India, the company has a market share of 37.9% in the digital signature market space in the financial year 2021, having grown from 36.5% in the financial year 2020.

The company saw its FII holdings rise from 2.6% in March 2022 to 4.3% in June 2022. The number of FIIs investors increased from 13 to 18 in the June quarter. While mutual funds also increased their holdings from 6.02% to 7.02% in the June 2022 quarter, The regular shareholders own 24.08 per cent, Trendlyne data shows.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.