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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 13.3% , indicating slower growth.
Q.2 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.3 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 below its 5 year median of 24.6% indicating decreasing margins.
Q.4 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 Historic Median
Gross Profit Margin 25 38.4
Operating Profit Margin 23.38 24.6
Net Profit Margin 16 25.69
Q.5 Return on Asset of Megri Soft Ltd?
Megri Soft Ltd Return on Asset is 2.18%, which is below its 5 year historical median of 2.28%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Megri Soft Ltd?
Megri Soft Ltd Return on equity is 2.21% for FY-2025 , which is below its historical median of 2.3%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Megri Soft Ltd?
Megri Soft Ltd Return on capital employed is 3.01% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Megri Soft Ltd?
Megri Soft Ltd Cash conversion cycle is 36 days, above its historical median of 36 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 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.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 0.01 , 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, indicating the business is able to service its debt comfortably.

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 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3 23.6
Gross Profit 0.8 1.9
Operating Profit 0.7 1.2
Net Profit 0.5 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.14 0.45
ROE 2.21 4.09
ROCE 3.01 6.4
Cash Conversion Cycle (days) 36.41 36

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 19.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.3% 12.4% -8.5% -40.6%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 52.93 69.58 22.96
Price to Book 1.13 1.70 2.61
Price to Sales 12.04 18.84 4.40
EV to EBITDA 32.74 43.40 17.20

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