Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.

Ceinsys Tech

Business

Ceinsys Tech Ltd. is engaged in providing value added Solutions for various segments into SMART CITY solutions and Software under the ITES business segment and is primarily dealing in providing Geospatial, Enterprise & Engineering Services and software products. The Geospatial engineering services and Enterprise solutions offerings encompass various aspects of geospatial intelligence, including Data Creation, Data Analytics, Decision Support Systems (DSS), Enterprise Web Solutions, and Dashboards.

Its services include GIS, Remote Sensing, LiDAR (Light Detection and Ranging), Photogrammetry, Energy System and solutions, Engineering Design Services, Surveys and Customized Application Development.

The Manufacturing Solutions span the entire product development process – covering both the product engineering activities and industrial automation solutions for various verticals such as two / three-wheelers, passenger cars, commercial vehicles, and off-highway equipment.

In the FY22 Ceinsys, strategically expanded into mobility sector by acquiring Allygrow Technologies, a specialized engineering service provider with a strong international presence. This acquisition allowed Ceinsys to enhance its capabilities into manufacturing technology solutions covering the entire product development process and industrial automation for diverse sectors such as two and three wheelers, passenger cars, commercial vehicles and off highway equipment.

Its a Pure-Play GIS and MF Services Company

Employee strength –1000+ and 200+ Customers (40% business from Repeat Customers}

Read Pick1, Pick2, Pick3, Pick4, Pick5, Pick6, Pick7, Pick8, Pick9, Pick10, Pick11, Pick12, Pick13, Pick14, Pick15

Subsidiaries

CTL had two direct subsidiaries ADCC Infocom Private Limited (involved in activities like software engineering, software development, business computing, data communication and networking, image processing and remote sensing etc ) and ATPL (specialised in manufacturing engineering services) and 5 step down subsidiaries i.e. Allygrow Technologies B.V, Technology Associates Inc., Allygrow Engineering Services Pvt Ltd, Allygrow Technologies, GmbH and Allygrow Technologies Ltd., UK

Geospatial Overview

Clients in Geospatial

Manufacturing Solutions overview

Customers, Global Presence and Revenue Mix

• The company boasts a marquee list of customers ranging from large corporates, OEMS, asset management companies and government bodies in the Geospatial and Manufacturing sectors, globally
• Enterprise Geospatial & Engineering Services 84%, Software Products 15%
• Geospatial Mainly Domestic 98%
• Manufacturing Manily Exports 92%
• It has a global presence with offices in India, the United States, United Kingdom and Germany

Applications

Smart city solutions

Spatial Data Infra

Disaster Management

Fundamental Ratios, Cash, EBITDA, PAT

Debt to equity is under control < Almost Nil

ROCE>20, ROE> 15

Pledge 14.6%

Good Sales and Net Profit Growth

Fluctuating OPM, Good NPM, Good Cash flow from operations

Triggers

Expansions and Acquisitions for future growth

ATPL has a track record of around 8 years and is a technology driven engineering service company and has its presence in US, Europe and India and specializes in Product design and Robotics automation. The company derives majority of its revenue from international market. With acquisition of ATPL, CTL is likely to derive benefits from the transaction by leveraging ATPL’s overseas network and expand its geographical presence.

The company is leveraging on India’s projected geospatial market growth which is expected to grow at CAGR of 13.5% by 2025

New Vertical

The company is also into software product development, Artificial Intelligence (AI), Machine Learning (ML) and Embedded Electronics space through a new vertical formation which focuses on product development activities related to Metaverse, EdTech, Gaming and Mobility.

Order inflows

Order book 710cr in March24

Current order book 750cr on 30th Jun24. ~550 crore is towards the geospatial and engineering services, and around +200 crore is towards the technology related solutions services. Bidding done for 200 crore of which
there are 70% of the tender pipeline we are already L1

Targeting Acquisitions and exploring fields like

Acquisition of Ally Grow Technologies facilitates entry into the mobility services sector, capitalizing on the convergence of GIS and autonomous driving technologies

Establishment of a new vertical MEG-Next which focuses on innovative product development activities related to Metaverse, EdTech, Gaming and Mobility.

Further acquisitions being planned in the Geospatial, Manufacturing and Technology domains

Aquired VTS in Jul24

Smart Water Management

The company is focused on capitalizing on substantial funding opportunities provided by government initiatives such as National Infrastructure Pipeline (NIP), Jal Jeevan Mission, and Namami Gange program, with a proposed budget of approximately USD 15 Billion for water-related projects

Focused on tapping the growth avenues in smart water management and renewable energy sectors, as India’s aims to add over 340 GW of renewable capacity by 2030

Tapping Manufcaturing and EV mobility growth

• Rapid expansion in EV ecosystem to support Manufacturing business growth
• Company is all set to seize opportunities in the growing EV mobility market, with global ER&D spending in the automotive sector accounting for USD 125-160 billion which is growing at a CAGR of 10.6%.

Risks

Lumpy nature of Orders –Orders come in bulk and so are the payments.

The order book of CTL remain concentrated as top ten orders accounts for 75%, there-by exposing the company to concentration risk. Also, the customer base of CTL is concentrated as around 55% of Income is derived from top ten customers.

Margins Volatility is high. OPM is fluctuating a lot across years

High Number of payable days

Technicals on 15-Jun-24

Disclaimer – Analysis is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There can be lot of things which have been missed in analysis either due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.

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