Check Before You Invest : Magellanic Cloud Ltd

BSE: 538891 NSE: MCLOUD ISIN: INE613C01026

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Magellanic Cloud Ltd belong to?

Magellanic Cloud Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Magellanic Cloud Ltd a good quality company?

Magellanic Cloud Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Magellanic Cloud Ltd undervalued or overvalued?

Magellanic Cloud Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Magellanic Cloud Ltd a good buy now?

Magellanic Cloud Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Magellanic Cloud Ltd?

Magellanic Cloud Ltd revenue growth is 9.3% for FY-2025, which is below its 5-year CAGR of 46.13%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Return on capital employed is 9.97% for FY-2025, which is below its 5-year historical median of 11.26%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Return on Asset is 3.04%, which is below its 5-year historical median of 4.25%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Return on equity is 6.79% for FY-2025, which is in line with its 5-year historical median of 6.98%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Cash conversion cycle is 71 days, above its 5-year historical median of -59 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.18	0.23
ROE	6.79	6.98
ROCE	9.97	11.26
Cash Conversion Cycle	71 days	-59 days

Q.6 Gross Profit margin of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.1% for FY-2025, which is below its 5-year median of 33.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 50% for FY-2025, which is above its 5-year median of 46.05% indicating increasing margins.

Q.8 Net Profit Margin of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Net Profit Margin is 16.73% for FY-2025, is in line with with its 5-year median of 16.73%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	27.1	33.8
Operating Profit Margin	50	46.05
Net Profit Margin	16.73	16.73

Q.9 Debt to Equity ratio of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Debt-to-Equity ratio is 1.11, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Magellanic Cloud Ltd?

Magellanic Cloud Ltd Debt to cash flow from operations is 91.05, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Magellanic Cloud Ltd?

Promoters hold 54.04% of the Magellanic Cloud Ltd, with 33.88% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Magellanic Cloud Ltd vs industry peers?

Magellanic Cloud Ltd revenue CAGR is 46.13%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.3	10.9
Gross Profit Growth	-18.5	18.3
Operating Profit Growth	5.3	18.8
Net Profit Growth	-22.2	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.18	0.5
ROE	6.79	5.83
ROCE	9.97	6.79
Cash Conversion Cycle (days)	70.6	47

Valuation & price assessment

Q.1 Stock return of Magellanic Cloud Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	3.1%	54%	-10.7%	-60.1%

Q.3 Valuation ratios of Magellanic Cloud Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	87.18	258.84	47.37
Price to Book	6.29	15.69	2.63
Price to Sales	16.44	41.14	4.79
EV to EBITDA	33.29	103.10	16.48

Check more companies

1. Tata Elxsi

2. Tata Technologies

3. KPIT Technologies

4. Fractal Analytics

5. Zensar Technologies

6. Intellect Design

7. Birlasoft

8. Nazara Technologies

9. Cyient

10. Amagi Media Labs

Check trending companies

1. Samvardhana Motherson International Ltd.

2. Jindal Saw Ltd.

3. Union Bank Of India

4. Lloyds Metals & Energy Ltd.

5. Astral Ltd.