C.E. Info Systems share price slumps 11% after Google slashes maps pricing

C.E. Info Systems share price slumped nearly 11% on Thursday’s session, ranked among the BSE index’s major laggards, following the news that Google is lowering map prices for developers in India. According to a news article by CNBC-TV18 that cited Moneycontrol, Google plans to reduce the cost of the Google Maps Platform by up to 70% for Indian developers starting on August 1, 2024. To facilitate the development of location-based solutions, the business has unveiled a new pricing structure tailored to each nation.

C.E. Info Systems offers software, digital map data, GPS navigation, location-based services, and the ability to customise its products for clients through subscription, annuity, and royalty. The stock reaction today, according to Profitmart Securities Head of Research Avinash Gorakshakar, was only a minor sentimental effect and had nothing to do with the company’s fundamentally strong long-term prospects.

C.E. Info Systems share price opened at an intraday low of ₹2,216.95 apiece on BSE, the stock touched an intraday high of ₹2,453.30 apiece.

Ruchit Jain, Lead Research Analyst at 5paisa, stated that technically, the C.E. Info Systems share price has broken its short-term 20 DEMA support, and RSI has given a negative crossover on the daily charts. As the C.E. Info Systems share price has seen a decent rally in the recent past, we could see some profit booking in the near term. The immediate support is placed around 2,200, followed by short-term support around 2,100.

Google and the Open Network for Digital Commerce (ONDC) will collaborate to provide developers building for ONDC with additional discounts for a certain time, according to a news report. According to Moneycontrol, which cited Google, this will lead to a 90% discount on a selection of Google Maps Platform APIs that power e-commerce as well as related use cases.

“Indian mapping companies are quickly closing the gap with the global giant Google Maps. They are achieving this by utilizing local expertise and customising their services to meet the unique requirements of the Indian market. With initiatives like ‘Make in India,’ companies such as MapmyIndia, ISRO’s Bhuva, and OlaMaps are poised to succeed by offering more precise, culturally relevant, and accessible solutions for the diverse landscape of the country. This is driving innovation and self-reliance in the tech sector. Google’s reduction in prices for their APIs is India’s way of indicating that we can compete with BigTech on a global scale! I am extremely optimistic about CEInfo both as a stock and as an end user!,” said Mohit Gulati, CIO & Managing Partner of ITI Growth Opportunities Fund.