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eMudhra Limited
A Business Analysis
About Business
eMudhra Limited is India's largest licenced Certifying Authority ("CA"). The company's business is divided into two verticles Digital Trust Services and Enterprise Solutions. eMudhra Limited is engaged in the business of providing services like individual/organizational certificates, digital signature certificates, SSL/TLS certificates and device certificates, a portfolio of digital security and paperless transformation solutions, multi-factor authentication, mobile application security, website security testing, IT policy assessment, etc.
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 organisations worldwide and issue SSL/TLS certificates for website authentication.
The company has issued over 50 million digital signature certificates through the network of 88,457 channel partners spread across India. As of September 30, 2021, the company is serving 36,233 retail customers and 563 enterprises.
As of September 30, 2021, eMudhra's Enterprise Solutions are used by the top 10 banks, 6 top automotive companies and 19 top companies amongst the top 500 ranked companies in India by Economic Times in Financial Year 2020.
Journey So Far
eMudhra Business And Products
eMudhra is a combination of cyber security and paperless transformation solutions built on a foundation of digital trust using Public Key Infrastructure technology
eMudhra has a strong R&D team of 250+ people of a total employee strength of 780+ people with skills across Cyber security, Cryptography, Cloud, DevSecOps. Key members of product team have spent 8+ yrswith the company.
Enterprise Solution - Product Portfolio
Public Key Infrastructure is an important foundation in cyber security for Data Privacy, Post Quantum Cryptography and Web 3.0
Enterprise Solution - Cont....
Entreprise Solution - Segmental Highlights
Trust Services - Poitioning as a "Branded" Player
Product Segmental Highlights
Business Overview
The company is the largest licensed Certifying Authority (“Certifying Authority” or “CA”) in India with a market share of 37.9% in the digital signature certificates market space in Financial Year 2021 having grown from 36.5% in Financial Year 2020. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) company is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. As part their Digital Trust Services, the company's issue 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. Under their Enterprise Solutions vertical, the company offer a diverse portfolio of Digital Security and Paperless Transformation Solutions, complementing their Digital Trust Services business, to customers engaged in different industries, thereby making their Company a ‘one stop shop’ player in secure digital transformation to provide a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solutions.
With more than 50 million digital signature certificates issued since inception, 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. Company works closely with large government and banking customers like the 20+ public and private sector banks and state governments. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) they have been identified and ranked amongst the ‘20 Most Promising Tech Solution Providers for Government & Public Sector 2019’ by CIO Review India. The company are the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority / Browser Forum, a global forum that governs the use of SSL/TLS certificates and to be accredited to Webtrust, which makes their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) Company has a strong digital signature certificate expertise and is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe allowing it to sell digital identities to individual/organization and issue SSL/TLS certificates for website authentication globally. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) Our Enterprise Solutions are developed by us and are built on the principle of delivering digital trust by helping users seamlessly identify, authenticate and authorize or sign digital transactions thus accelerating the transition to a presence-less and paperless way of doing business.
Company's Strength
Largest licensed Certifying Authority in India
Company is the largest licensed Certifying Authority in India with a market share of 37.9% in the digital signature certificate market space in Financial Year 2021 having grown from 36.5% in Financial Year 2020. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) Company is the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority / Browser Forum, a global forum that governs the use of SSL/TLS certificates. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) Their Company is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe, allowing us to sell digital identities to individual/organization and issue SSL/TLS certificates for website authentication, globally. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) Company are also the only Indian company to be accredited to Webtrust which makes our digital signature certificates directly recognized by browsers across the world allowing us to issue digital signature certificates in many countries.
The company is one of the largest players in the Indian Digital Trust Services market with a market share of 17.8% and we enjoy 19.0% market share in the Digital Transformation Solutions market in India for Financial Year 2021. The company relevant experience in the digital secure and paperless transformation industry enabled them in identifying and capitalising the market opportunity offered by the Indian digital certificates market and garner the capabilities of serving all kind of subscribers who use digital certificates for income tax return filing, filings to be made with Ministry of Corporate Affairs (Registrar of Companies) filings, tenders, foreign trade, banking, railways etc. (Source: Company commissioned report titled “Digital Security and Paperless Transformation Market” dated November 8, 2021 from Frost and Sullivan) As part of their signature and authentication solutions, also offer digital products such as, secure domain validation certificates with capabilities of securing sensitive information stored on websites through padlock and business information authentication services. The company diverse business operations and leading market position provides them the leverage to serve large government and banking customers, 20+ public and private sector banks and state governments.
We are a one stop shop solution provider in secure digital transformation and are well-positioned to capture the favourable industry dynamics in India and globally
Digital Identity and Trust is foundational to the growth of enterprises in the era of digital transformation as it enables enterprises to create frictionless user experiences that are both simple and secure. Enterprises are under ever-increasing competitive pressure to deliver personalized and seamless omni-channel experiences and also focus on secure digital identity and transaction management as a key strategic initiative to provide distinguished experiences. Company, with a view of capitalising this opportunity ventured into the business of providing Enterprise Solutions in the year 2012 to customers engaged in different industries. Company’s Enterprise Solutions are majorly divided into three broad categories viz., eSignature workflow solutions for paperless office (emSigner), authentication solutions (emAS) and public key infrastructure solutions (emCA). As part of these offerings, provide capabilities, such as password-less authentication that free users from the challenges and security risks associated with weak and forgotten credentials. As part of their Enterprise Solutions, they also provide eSignature solutions with global, full service, enterprise delivery capabilities that allows us to cater to paperless transformation of large enterprises with complex enterprise workflows going beyond simple document signing use cases with support for scalability, data security and ease of use. As of December 31, 2021, Enterprise Solutions were used by 10 out of top 10 banks, 6 of top 10 automotive companies and 19 out of top 20 companies amongst the top 500 ranked companies in India by Economic Times in Financial Year 2020.
Technology certifications, accreditations and membership in international bodies
The company is a registered certifying authority with the Controller of Certifying Authorities and are the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority/ Browser Forum, a global forum that governs the use of SSL/TLS certificates. The company have obtained a variety of accreditations, security/compliance certifications which maintain on an ongoing basis for example, Webtrust Accreditation to provide services as a public certifying authority globally and list their digital signature certificate roots with renowned browsers. All the services provided under trust solutions, are compliant with the quality standard of ISO 9001 and are certified by the applicable certification body. Further, their cloud offerings are compliant with SOC2 Type 2 and our eSignature workflow solutions, emSigner is listed on the SAFE Identity Qualified Product List (QPL). We have obtained the following certifications certifying the quality of our services and diverse product offerings:
Company's Strategies
Capitalize on industry opportunities in India and maintain leadership in Indian Trust Services market and as a ‘one stop shop’ player in secure digital transformation
Increasing threats to the data security and the prevalent trend of working from home during the ongoing pandemic, has opened up new opportunities for the digital security and the digital signature solutions industry. Digital identity is foundational to the growth of enterprises in the era of digital transformation because it enables enterprises to create frictionless user experiences that are both simple and secure. Enterprises are under ever-increasing competitive pressure to deliver personalized and seamless omnichannel experiences and often compromise on experience or security to achieve these outcomes. This competitive pressure is driving enterprises to focus on digital trust, security and transformation as a key strategic initiative to provide differentiated experiences to increase loyalty with consumers, enhance productivity for employees and mitigate risk and fraud in a secure environment. Data security, trust services and enterprise solution is still an underpenetrated sector in India and across the world. Initiatives under the Digital India programme are examples of how technology is being leveraged to power India’s transition to a presence-less and paperless society.
Leveraging our existing data centre infrastructure and setting up new data centres in overseas locations
Company's customers use their data centers and digital solutions to access business systems and store data concerning, among other things, their employees, contractors, partners and customers. With the growing need of digital signature services in the Indian and international markets, propose to invest in leveraging their existing data centre infrastructure and setting up new data centres. As part of their strategic initiatives, propose to set up additional data centers in India and various overseas locations to support our technological infrastructure and their plan of venturing into foreign jurisdictions for future growth. Company propose to utilise approximately ₹ 463.64 million of the Net Proceeds of the Offer towards purchasing of equipments and funding of other related costs for the data center proposed to be set up in Bengaluru and Chennai in India and in overseas locations, including but not limited to, European Union in countries like Netherlands and Germany and in Asia Pacific in countries like, Indonesia. The investments in domestic and overseas data centres will enable us to meet customer volume, transaction, SLA requirements and data residency requirements and set up physical and logical security controls, climate control and monitoring systems, servers, various computing and storage devises, virtualization, networking, power backup and internet redundancy facilities.
Enhance solution offerings to tap growing needs of digital transformation
The company believe that adoption of digital identity, security and paperless transformation solutions are now forming part of strategic initiatives for global enterprises to meet the increasing need for personalized and omnichannel experiences. As enterprises compete with new age technology, they have to quickly adopt and implement solutions that are plug and play, offer high level of scalability and support compliance with regulatory needs. The market offers opportunities with respect to emSigner (eSignature workflow), emAS (identity and access management) and emCA (PKI solutions) to cater to enterprise digital transformation needs. Company have been working relentlessly with several large and small businesses to build seamless digital and paperless experiences with their clients without compromising on security by leveraging most advanced technologies in AI, ML and Automation. We have been consistently designing and developing diverse products under various product lines – Digital Trust Services, digital security solutions and paperless transformation – by understanding customer requirements and implementing solutions to address their challenges. Most of the products come with in-depth features and easy to infer User Experience making it easily deployable. Our solutions come with on-premise and cloud versions making it a solution of choice for the highly regulated industry verticals like BFSI and government. Our products are developed by adhering to various industry regulations and mandates.
Company's Presence
International Presence:
Domestic Presence:
“One Stop Shop” Solution Provider in securing Enterprise Transition to Zero Trust
Strong solution led growth across cyber security and eSignature workflow solutions with significant penetration into international markets
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Industry Analysis
Digital growth levers to GDP Growth
Global
Countries that have a strong digital foot-print has been at the forefront of growth. To remain ahead in the race of global dominance, countries cannot afford to not take a digital first strategy. With the numerous advantages that digital provides over manual, digital transformation has become the backbone of an economy. Digital economy is the economic activity that results from billions of everyday online connections among the citizens (people), businesses, devices, entities, data, and processes. Connectivity remains prime which means connecting people, organizations, and machines that result from the internet, mobile technology and IoT. Also known as the internet economy, digital economy helps execute existing/mundane tasks more easily with the use of technologies which other-wise becomes far more tiring and time consuming. Digital economy is not just digitlization or automation but takes cognizance of technologies and platforms like hyperconnectivity, IoT, big data, analytics, wireless networks, mobile devices and social media.
Hyperconnectivity: A hyperconnected infrastructure includes all kinds of electronic and computer devices like PCs, PDAs, cellular phones, television receivers, personal radios, GPS systems and more. In the modern-day world, hyperconnectivity includes IoT devices, voice assistants, browsers and 5G networks. 5G is expected to be revolutionary for the future. It would find use cases in smart cities, connected vehicles, industrial IoT, feet management, logistics and more.
Internet of Things (IoT): IoT is considered as one of the fundamental pillars of digital transformation since it enables and accelerates business creation and opportunities with an aim to ease up work, enable better efficiency, and improve the way of living. IoT has often been an element of change in the industrial and consumer technology.
Big Data and Analytics: Businesses use big data analytics to better understand customers, develop targeted marketing messages, launch new products, check ideas, improve business processes, and optimize customer journeys. Economies cannot embark in the digitization journey if an ecosystem to churn the citizen data cannot be churned out.
Wireless Networks: Wireless network is a network arrangement where the device does not remain connected with a wire or a cable of any kind. The computer network makes use of radio frequency (RF) connections between nodes in the network. In a digital economy, consumers can connect to a public wifi and perform digital transaction, search online or browse social media sites.
Mobile Devices: Mobile devices enable people to connect to wireless networks and perform online tasks. Digital payments have reached newer heights and mobile phone have become the fundamental device for transactions. Different mobile applications, developed by governments and private entities, have come up making human lives much easiler – from food delivery apps to shopping, cab booking, mobile banking, and maps – all delivered through an app.
India
Over the last 6 years, India has been riding growth specifically on digital initiatives. The Digital India campaign has been pivotal to the country’s digital focus that has seen significant traction. The Digital India program is a flagship program by the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. Launched by the Government of India and coordinated by Meity (Ministry of Electronics and IT) in July 2015, the Digital India campaign has a vision to ensure that government services are being made available to citizens electronically by reducing paperwork.
The Digitial India initiative rests on 9 key pillars :
In order to boost the Information and Communications Technology (ICT) infrastructure of the country, the Government of India has taken the following key initiatives:
Further to the ICT infrastructure campaigns, the India government has taken several initiatives as a part of the Digital India program :
e-Sign: eSign framework allows for online digital signature by leveraging Aadhaar and other forms (PAN, Bank KYC, etc.) of authentication.
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Management of the Company
Shareholding Pattern
Profit and Loss
Profitability Ratio
Future Projects
Risk of the company
Valuation
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer - Not an recommendation. Source - Company's annual report, investor presentation, RHP and StocX.in
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
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