eMudhra hits fresh high; zooms 60% in 2 months on healthy outlook

Shares of eMudhra rallied 14 per cent on BSE to hit a new high of Rs 704.20 in Thursday’s intra-day trade amid heavy volumes led by a healthy business outlook.

In the past two months, the stock of the cyber security and paperless transformation solution provider has zoomed 60 per cent as the company reported a strong performance with a year-on-year revenue growth of 59.5 per cent, EBITDA growth of 19.6 per cent and 31.6 per cent increase in net profit for the December quarter (Q3FY24).

The strong growth was led by global enterprise solutions and continued investment in supporting overseas market growth. 

 

The management, while announcing Q3FY24 results on February 5, said the company saw significant growth in international markets aided by wins across geographies with increased demand for cybersecurity solutions. It saw increased traction for the company’s solutions in North American markets both for cyber security and paperless office segments.

In January 2024, eMudhra raised Rs 200 crore through a qualified institutional placement (QIP). The company issued 4.74 million equity shares at a price of Rs 422 per share.

It allotted 1.9 million or 2.29 per cent of total equity of the company to Nippon India Mutual Fund’s various schemes.

eMudhra said the company intended to use the net proceeds towards funding of expenditure relating to product development, investment in eMudhra INC (its arm) for funding their working capital requirements; funding inorganic growth initiatives by itself or by investing in its Indian or overseas subsidiaries. 

eMudhra is a global organization aimed at empowering secure digital transformation by offering trust services and developing solutions around identity, authentication, and digital signatures.

eMudhra has a strong marquee client list including Fortune 100 clients, and over 900 plus large enterprises who use its products and solutions for their secure digital transformation initiatives.

Meanwhile, the company's acquisition of IKON Tech Services continues to yield various cross selling opportunities across their customer base in Education, Oil & Gas and Financial Services., it said. 

The management added they saw continued deal momentum in MEA markets where the company is working across eGovernance and BFSI for implementation of technology stack related to Digital Public Infrastructure, Zero Trust and Paperless Transformation.

In India, there was continued demand for paperless office solutions, supported by eSign plus eStamping, for onboarding in capital markets and banking, it said.