A Detailed Guide for ESDS Unlisted Shares
ESDS was established in 2005 by Piyush Somani as an Outsourced Hosting Support & later on became a web hosting provider for US & UK market. ESDS has exponentially developed its reach across global markets over the years. Today, we compete with leading industry giants such as AWS, Microsoft Azure, CtrlS, Sify, Alibaba, Netmagic, NextGen, and Rackspace under Managed Data Center Services, Cloud Solutions, and Disaster Recovery Hosting services.
ESDS Competitive Edge
ESDS has made a name for itself in terms of innovations and is known for being customer centric. Hailing from the company, its technical support services are best and most effective, which has enabled it to penetrate the BFSI, Healthcare, Education, Energy & Utilities, Agriculture, Manufacturing, IT, Entertainment & Media, Travel & Tourism, Telecom, Government, and eCommerce verticals. Today, ESDS is present in 19 countries in APAC, Europe, the Middle East, Americas, and Africa.
Key Achievements of ESDS
- The first cloud company in India to own a Vertical Auto-Scaling Patent
- Publicly announced first commercial data center that holds an active Uptime Tier III Certification.
- First Indian cloud company to file a patent in the space of cloud & infrastructure hosting.
- India’s only Cloud & Data Center Company with 50+ R&D engineers.
Business Model of ESDS
ESDS deals in two major entrenched business verticals as discussed below:
- Managed Cloud Hosting
- Managed Data Center Services
Products & Services of ESDS
- eNlight Cloud
- eNlight 360°
- eMagic DCIM
ESDS Data Centers
- Data Center Nashik (Phase 1): 100% Occupancy
- Mumbai DC (Phase 1): Cacharel: 100%, Occupancy
- 10% full: Bangalore Data Center
- Nashik Data Center (Phase 2): 3% occupied
- Coming Soon Data Centers: Bahrain and New Sites In India
Client Portfolio of ESDS
https://esds.co.in/ ESDS empowers 220+ cooperative banks and over 350 nationalized PSU websites.
- Over 50% SAP HANA Deployments in India hosted
- Trains both MUDRA Bank, Startup India and Standup India government projects
- Father of 200M Mudra Scheme Loan Disbursements
Why Choose ESDS?
- No 1 Cloud Service Provider in India
- Cutting-edge technology solutions
- Wide range of product portfolio (eNlight 360°, eMagic, iPAS, VTMScan)
- A trusted partner for various industries (Banking, Government, IT, Telecom, Defense, Manufacturing, etc.)
Mission 2024: The ESDS Strategic Goals
- Connect 1B devices across India to make them more functional.
- Grow its banking client base to over 380 institutions.
- Train to run 150K POS devices for hassle-free transactions.
- Delist 25K ATM from its web cloud
- battle it out with 900K card transactions
- 2M connected devices with 30+ smart city & IoT projects
Annual Report 2022 Analysis
- FY22 has a 14% revenue growth, however, CAGR has slowed to 25% from 2017-2021.
- Operating profit fell 5%, despite an increase in revenue.
- FY22 net loss of INR 2.6 Cr (vs profit of INR 5.4 Cr in FY21).
- Cash flow from operations was INR 26 Cr, minus depreciation of INR 42 Cr.
- Free cash flow is negative on account of a CAPEX investment of INR 60 Cr.
Funding Overview
- ESDS raised funds for supporting CAPEX through:
- From preference shares – 20 crores INR.
- INR 30 Cr for Non-Convertible Debentures (NCDs).
- Additional borrowings of INR 42 Cr.
Valuation of Unlisted Shares ESDS
- Total outstanding shares (converted) : 9.28 Cr shares
- CMP(current market price) on 25th October 2023: INR 250 per share
- Market Cap (MCap): ~INR 2200 Cr.
- Valuation looks on a higher edge, thus needs cautious assessment.
Final Thoughts
ESDS continues to be a strong player in cloud computing and the data center market in India. Although they do face some financial issues right now, they hold a significant technological edge over their competitors and have secured many new clients Recently, signalling that they have ambitions for growth in the future. All investors need to analyze the company debt, revenue growth and future profitability before investing.
