ESDS : Company Overview
Founded in 2005 in Nashik, India, ESDS has grown into a global leader in digital transformation, with a presence in 19 countries across APAC, Europe, the Middle East, the Americas, and Africa. The company serves over 750 clients across various sectors, including BFSI, IT and ITES, manufacturing, telecom, real estate, pharmaceuticals, retail, and education. Known for its customer-centric approach, ESDS offers a comprehensive range of cloud solutions, including IaaS, SaaS, and Managed Services, positioning itself as a “one-stop-shop” for cloud adoption. By fostering a culture of innovation and collaboration, ESDS has helped organizations worldwide achieve their business goals through advanced technology and outcome-driven services.
| Company Name | ESDS Software Solution |
| Company Type | Unlisted Public Company (Buy unlisted shares) |
| Industry | IT Consulting and Other Services |
| Founded | 2005 |
| Registered Address | Nashik, Maharashtra 422007 |
Industry Overview
IT consulting, or technology consulting, helps businesses use IT and digital assets to achieve their goals. The global technology consulting market is valued at around $48 billion, representing 20% of the total consulting market, and has seen steady growth with a 2.5% CAGR. This market is driven by major trends like digitization, cloud, analytics, robotics, and IoT. IT consulting includes services such as IT strategy, architecture, implementation, ERP services, systems integration, security, software management, and data analytics. Technology consultants assist clients in addressing business challenges through IT, ranging from strategic to operational tasks. Firms in this space include large global players, generalist firms with IT units, and niche IT players.
- Revenue in the IT Consulting & Implementation market is projected to reach US$1.23bn in 2024.
- Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.62%, resulting in a market volume of US$1.86bn by 2029.
- The average Spend per Employee in the IT Consulting & Implementation market is projected to reach US$2.26 in 2024.
- In global comparison, most revenue will be generated in the United States (US$27,220.00m in 2024).
Business Segments
Cloud Hosting for various Industry Verticals
Cloud hosting is the most innovative cloud computing technologies that allow multiple physical server machines to act as one system. ESDS provides some specific cloud hosting solutions as under-
- Core Banking Hosting on eNlight Cloud
- SAP HANA Hosting on eNlight Cloud
- Web Portals and eCommerce hosting on eNlight Cloud
Data Center Services
Product Portfolio
Timeline
| Year | Milestone |
| 2005 | Birth of ESDS |
| 2006 | Entered USA & UK markets |
| 2008 | Built Green Data Center in Nashik |
| 2011 | Innovated eNlight Cloud platform |
| 2015 | eNlight Cloud won USPTO Patent |
| 2016 | Built Tier III Data Center in Mumbai |
| 2017 | Ranked 13th Best Mid-sized Workplace in India |
| 2018 | Ranked 8th Best Mid-sized Workplace in India |
| 2019 | Entered Arabian Gulf market |
| Introduced SPOCHUB, a SaaS marketplace | |
| Ranked 2nd Best Mid-sized Workplace in India | |
| 2020 | Ranked 15th Best Workplace in Asia |
| Introduced Cloud Consultancy Services | |
| Built a Data Center in Bangalore | |
| 2021 | Won Best Tech Brand Award by ET Edge |
| Reaffirmed commitment to being a Great Place to Work | |
| Built a Data Center in Bangalore | |
| Launched FAMRUT | |
| 2022 | Won Aegis Graham Bell Award |
| Launched Data Center in Mohali | |
| Won Most Preferred and Trusted CSP Award by Economic Times | |
| Received Indian Patent for Vertical Auto Scaling Technology | |
| 2023 | Built Tier III Data Center in Mohali |
| Awarded Outstanding Cloud Service Provider at NBFC Tech Summit |
Vision & Mission
Vision
Creating a Technologically Advanced Greener Planet
Mission
Management
Komal Somani | Whole Time Director and CHRO |
Komal Somani, Founder of Happiness Infuser, is passionate about people and workplace positivity. After leading ESDS to 2nd place in the “Great Place to Work” rankings for four consecutive years, she launched Happiness Infuser to spread joy and transform work cultures across India. Recognized as one of India’s most innovative HR leaders, she believes employees are an organization’s greatest asset.
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Piyush Somani |Founder CMD and CEO |
Piyush Somani founded ESDS Software at 23, starting with a single computer and a drive to provide exceptional customer service. Today, ESDS serves 40,000+ clients and manages over 3 million digital assets. Piyush’s innovations, including eNlight Cloud and eMagic, have made ESDS a leading cloud service provider.
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Shareholding Pattern
| Name | Shareholding (%) |
| PIYUSH PRAKASHCHANDRA SOMANI | 28.91 |
| KOMAL PIYUSH SOMANI | 24.19 |
| SOUTH ASIA GROWTH FUND II, L.P | 22.3 |
| SOUTH ASIA GROWTH FUND II HOLDINGS, LLC | 10.23 |
| GEF ESDS PARTNERS, LLC | 8.16 |
Awards & Recognitions
Financial Highlights
| Financials (in crores) | 31st March,2023 | 31st March,2022 | Increase % |
| Revenue | 207.57 | 195.36 | 6% |
| EBITDA | 47.48 | 58.69 | -19% |
| PAT | -22.45 | -2.72 | -725% |
| EPS (diluted) | -2.42 | -0.42 | -476% |
| PAT Margins | -11% | -1% |
Valuation
| Valuations | 31st March, 2023 |
| Share Price (20-09-2024) | 269 |
| Outstanding shares | 92,894,185 |
| MCAP (in Crs) | 2498.85 |
| P/E Ratio | -111.16 |
| P/S Ratio | 12.04 |
| P/B Ratio | 11.89 |
| Book value per share | 22.62 |
| Total Equity (in crores) | 210.15 |
Peer Comparison
(₹ in Cr)
as on 31st March, 2023
| Particulars | ESDS | BirlaSoft |
| Revenue | 207.57 | 4,817.58 |
| EBITDA | 47.48 | 543.27 |
| PAT | -22.45 | 331.58 |
| EPS | -2.42 | 11.92 |
| Share Price | 269 | 260 |
| MCAP | 2499 | 7147 |
| P/E Ratio | -111.16 | 21.81 |
| P/S Ratio | 12.04 | 1.48 |
| P/B Ratio | 11.89 | 2.91 |
| Book value per share | 22.62 | 89.07 |
Partners
Recent News
June 17, 2024
ESDS Software Solutions plans to establish two new data centers in Noida and Kolkata within two years and expand existing centers in Mumbai and Bangalore. Currently operating six centers across India, ESDS serves 450 banking clients and 250 government organizations through its cloud services. The company is India’s largest smart metering hosting provider, managing 95% of live smart meters in the country. With a global presence in 19 countries, including data centers in the UK and US, ESDS is also expanding into AgriTech and AI sectors, aiming for 70% growth this fiscal and over 100% in the next.
(Source: The Hindu BusinessLine)
SWOT Analysis
Strengths:
- Innovative Technology: ESDS is known for its cloud solutions, particularly the eNlight Cloud platform, which provides unique auto-scalable cloud services.
- Customer-Centric Approach: Strong reputation for delivering excellent customer service with over 750 clients across diverse industries like BFSI, IT, telecom, and education.
- Global Presence: Operations in 19 countries, allowing for a broad market reach and increased brand recognition.
- Green Data Centers: Focus on eco-friendly operations with energy-efficient data centers, aligning with global sustainability trends.
- Strong Cloud Portfolio: A comprehensive range of IaaS, SaaS, and Managed Services, catering to various sectors.
Weaknesses:
- Financial Challenges: Recent financial performance has shown a decline, with negative profitability margins and PAT in 2023, raising concerns about long-term sustainability.
- Dependence on Indian Market: Despite its global presence, a large portion of its revenue still comes from the Indian market, limiting its risk diversification.
- High Valuation Ratios: High P/E and P/S ratios indicate the stock may be overvalued compared to its financial performance, posing risks for investors.
Opportunities:
- Rising Demand for Cloud Solutions: With increasing digital transformation and cloud adoption, there is significant room for growth in sectors like BFSI, government, and manufacturing.
- Expansion of Data Centers: Planned expansion into new markets with data centers in Noida, Kolkata, and scaling operations in Mumbai and Bangalore.
- AgriTech and AI Ventures: ESDS’s entry into sectors like AgriTech and artificial intelligence opens doors for diversification and growth.
- Government Digital Initiatives: As a leader in smart metering and hosting solutions, ESDS can benefit from India’s continued digital and infrastructural advancements.
Threats:
- Intense Competition: The cloud services market is competitive, with global giants like AWS, Microsoft Azure, and Google Cloud offering similar services.
- Economic Volatility: Economic slowdowns or disruptions could impact clients’ IT spending, affecting ESDS’s revenue growth.
- Cybersecurity Threats: As a cloud service provider, any breaches or cybersecurity issues could damage ESDS’s reputation and lead to client losses.
- Regulatory Risks: With data protection laws and cloud regulations evolving globally, ESDS faces potential compliance challenges, particularly in international markets.
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ESDS Software Solution unlisted shares are currently trading at ₹ 269 , CLICK HERE to Invest.
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