1. At a Glance
If Marvel made a superhero for the auto marketing world, it would look suspiciously like IZMO Ltd — except instead of a cape, it wears a CRM dashboard. The company is a world leader in automotive interactive marketing solutions, flaunts the world’s largest automotive image collection, and yet somehow refuses to share profits with shareholders in the form of dividends. With 35.8% profit CAGR in the last 5 years and a P/E of 11.7, IZMO is that overachieving kid in class who never brings sweets for the class after winning a trophy.
2. Introduction
Founded in 1995, back when the internet sounded like a fax machine, IZMO Ltd has grown into an automotive tech powerhouse. Its software, imagery, and training tools are used by global automotive retail giants across North America, Europe, and Asia. It’s basically the Photoshop + Salesforce + CarDekho of the corporate world — but with the twist that they also own a defense manufacturing subsidiary (because why not?).
The company’s shares have taken investors on a bit of a rollercoaster — from triple-digit stock price CAGR in recent years to a -11% return over the last year. Promoter holding is low at 35%, which means they have to share the steering wheel with the public and FIIs. And yet, the balance sheet is almost debt-free, which in corporate India is rarer than a pothole-free road.
3. Business Model (WTF Do They Even Do?)
IZMO’s core business is interactive marketing
solutions for the automotive industry.
They make money by:
- Selling hi-tech e-retailing platforms to car dealers & manufacturers.
- Providing sales performance coaching for automotive retail teams.
- Licensing OEM-certified CRM and ILM tools for lead & inventory management.
- Selling access to the largest automotive image & animation database on Earth.
- Oh, and manufacturing defense equipment through Hughes Precision Manufacturing Ltd, a 100% subsidiary.
Revenue streams are largely B2B and export-heavy, giving them a moat — albeit with chunky debtor days (161 days, hello cash flow delay).
4. Financials Overview
TTM Figures:
- Revenue: ₹225 Cr
- Net Profit: ₹49 Cr
- EBITDA: ₹38 Cr
- EPS: ₹32.87
- P/E (at ₹402): 11.7x
- ROE: 15.3% | ROCE: 16.8%
Observations:
- Revenue CAGR (5Y): 17% — healthy and steady.
- Profit CAGR (5Y): 36% — very healthy, someone’s gym membership is paying off.
- OPM dropped from 22% (FY24) to 17% (FY25) — margins got a little cold feet.
- Other income in FY25 was ₹33 Cr — suggesting a big one-off boost.
- Zero dividend
