Check Before You Invest : Megri Soft Ltd

BSE: 539012 NSE: ISIN: INE756R01013

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

Snapshot

Q.1 Which industry/sub-sector does Megri Soft Ltd belong to?

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

Q.2 Is Megri Soft Ltd a good quality company?

Megri Soft Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Megri Soft Ltd undervalued or overvalued?

Megri Soft Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Megri Soft Ltd a good buy now?

Megri Soft Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Megri Soft Ltd?

Megri Soft Ltd revenue growth is 8.7% for FY-2025, which is below its 5-year CAGR of 13.26%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Megri Soft Ltd?

Megri Soft Ltd Return on capital employed is 3.01% for FY-2025, which is in line with its 5-year historical median of 3.06%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Megri Soft Ltd?

Megri Soft Ltd Return on Asset is 2.18%, which is in line with its 5-year historical median of 2.28%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Megri Soft Ltd?

Megri Soft Ltd Return on equity is 2.21% for FY-2025, which is in line with its 5-year historical median of 2.3%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Megri Soft Ltd?

Megri Soft Ltd Cash conversion cycle is 36 days, in line with its 5-year historical median of 36 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.14	0.09
ROE	2.21	2.3
ROCE	3.01	3.06
Cash Conversion Cycle	36 days	36 days

Q.6 Gross Profit margin of Megri Soft Ltd?

Megri Soft Ltd Gross profit margin which is the profit after deduction of direct costs, is 25% for FY-2025, which is below its 5-year median of 38.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Megri Soft Ltd?

Megri Soft Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.38% for FY-2025, which is in line with its 5-year median of 24.6% indicating stable margins.

Q.8 Net Profit Margin of Megri Soft Ltd?

Megri Soft Ltd Net Profit Margin is 16% for FY-2025, is below with its 5-year median of 25.69%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	25	38.4
Operating Profit Margin	23.38	24.6
Net Profit Margin	16	25.69

Q.9 Debt to Equity ratio of Megri Soft Ltd?

Megri Soft Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Megri Soft Ltd?

Megri Soft Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Megri Soft Ltd?

Promoters hold 74.99% of the Megri Soft Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Megri Soft Ltd vs industry peers?

Megri Soft Ltd revenue CAGR is 13.26%, 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	8.7	10.9
Gross Profit Growth	-18.5	18.3
Operating Profit Growth	-18.6	18.8
Net Profit Growth	-21.3	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.14	0.5
ROE	2.21	5.83
ROCE	3.01	6.79
Cash Conversion Cycle (days)	36.41	47

Valuation & price assessment

Q.1 Stock return of Megri Soft Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	20%	24%	-6%	-38.3%

Q.3 Valuation ratios of Megri Soft 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	55.63	68.39	47.37
Price to Book	1.19	1.71	2.63
Price to Sales	12.65	16.07	4.79
EV to EBITDA	34.46	43.10	16.48

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