Megasoft Ltd Stock Analysis

BSE: 532408 | NSE: MEGASOFT | IT - Software | Small Cap

BSE Share Price 05-Jun-2023 10:01
33.71 0.40 (1.20%)

DeciZen - Make an Informed Decision on Megasoft

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Overvalued

3. Price Trend

Megasoft Price Chart

P/E Ratio ( SA) :
27.66
Market Cap :
245.7 Cr.
52-wk low :
19.9
52-wk high :
52.6
Bole Toh?

1. Is Megasoft Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Megasoft Ltd is a below average quality company.

2. Is Megasoft Ltd undervalued or overvalued?

The key valuation ratios of Megasoft Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Megasoft Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Megasoft Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Megasoft:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Megasoft Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 0.7%2.2%1.3%0.9%-1.3%-1.7%1.1%1.6%2.3%2.6%-
Value Creation Index -1.0-0.9-0.9-0.9-1.1-1.1-0.9-0.9-0.8-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 46.250.642.73031.128.523.620.316.514.14
YoY Gr. Rt. %-9.7%-15.7%-29.7%3.4%-8.2%-17.1%-14%-19%-14.3%-
Adj EPS -0.20.10-0-0.8-1.1-0.2-00.40.51.2
YoY Gr. Rt. %-NA-75%-200%NANANANANA25%-
BVPS (₹) 38.639.231.532.8333227.127.227.521.322.4
Adj Net Profit -0.90.50.1-0.1-3.7-5-0.9-0.11.63.39
Cash Flow from Ops. 33.134.50.65.82.518.3487.110.923-
Debt/CF from Ops. 1.30.5222.96.40.90.31.30.21.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -12.3%-14.6%-15.8%-14.3%
Adj EPS NANANA25%
BVPS -6.4-8.5-7.8-22.8
Share Price 17.3% 29.8% 76.8% -31%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -0.50.30.1-0.1-2.5-3.5-0.6-01.125.5
Op. Profit Mgn % -1.215.2-10.810.4-12.7-9.3-19.75.66-129.9-447.2
Net Profit Mgn % -21.10.3-0.4-11.8-17.5-3.8-0.29.723.3198
Debt to Equity 0.30.10.10.10.10.10.10.100.2-
Working Cap Days 8996555889371,0521,5431,8532,1192,5091,7600
Cash Conv. Cycle 3773152713332182913084445602860

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 5.50%

Sales growth has been subdued in last 3 years -15.80%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -71.83%

Latest Financials - Megasoft Ltd.

Standalone Consolidated
TTM EPS (₹) 1.2 1.1
TTM Sales (₹ Cr.) 4.5 15.6
BVPS (₹.) 22.4 22.4
Reserves (₹ Cr.) 91 91
P/BV 1.49 1.47
PE 27.66 31.27
From the Market
52 Week Low / High (₹) 19.90 / 52.60
All Time Low / High (₹) 4.08 / 205.00
Market Cap (₹ Cr.) 246
Equity (₹ Cr.) 73.8
Face Value (₹) 10
Industry PE 29

Management X-Ray of Megasoft :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Megasoft

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Megasoft Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Megasoft on 05-Jun-2023 10:01 is : 33.71.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 05-Jun-2023 10:01 the market cap of Megasoft stood at ₹ 245.7.
The latest PE ratio of Megasoft as of 05-Jun-2023 10:01 is 27.66.
The latest PB ratio of Megasoft as of 05-Jun-2023 10:01 is 1.49
The 52-week high of Megasoft is ₹ 52.60 and the 52-week low is ₹ 19.90.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Megasoft is ₹ 4.47 ( Cr.) .

About Megasoft Ltd

Megasoft, incorporated in 1999, is a domain centric, intellectual property driven, technology solutions company in the telecom and IT sectors, acknowledged for its innovative excellence and technical expertise. Megasoft, through its innovative offerings revolutionized the global products, applications and technology platforms.

Over the years Megasoft has developed deep technical and business expertise in select domains that has enabled the company to not only understand its clients, but also provide fast-cycle, competent and cost-effective solutions for increased profitability and greater growth opportunities. Armed with its partnership approach for co-creation of business value, faster understanding and speedier implementation, Megasoft helps unlock potential revenue opportunities for clients.

Megasoft Consultants Inc was established in 1994 in Virginia USA. It is listed on Bombay Stock Exchange. Megasoft, a public listed company that operates out of offices spanning Europe, Asia and America.

The year 2004 was a turning point for Megasoft, when along with acquisitions, mergers and restructuring; the company identified and initiated major strategic transformation, from a service and manpower centric revenue generation to a product, technology and transaction revenue.

The company is currently focusing on telecom as a thrust area, given its strong management and delivery capabilities in these industry domains. XIUS-bcgi, the telecom division of Megasoft is a leading global provider of Advanced Roaming, OSS and Convergent Service Delivery Infrastructure solutions to wireless and wireline network operators and service providers. Strong partnerships with global leaders like HP, Teleglobe and TNZI have given XIUS-bcgi the reach and credibility to build a customer base spanning across Asia, Americas, Europe and the Middle East with over 65 commercial installations to its credit till date.

Business Focus

XIUS-bcgi- It architects infrastructure and mobile solutions that are flexible, scalable and robust, clearing the way for mobile operators to rapidly deliver differentiated services to their customers and stay ahead of the competition.

BlueAlly- This is a strategic shift from the regular consulting and software services to innovating for other products companies and offering conceptualization, creation and realization of technology solutions through its unique product realization methodology

Milestones

  • 1994-Megasoft Consultants Inc (MCI) was incorporated in Fairfax, Virginia, USA.
  • 1999-Megasoft was incorporated in Chennai, India.
  • 2000-Megasoft merges with Indus e solutions, a public listed company and gets listed on Bombay, Chennai, Hyderabad and Ahmedabad Stock Exchanges.
  • 2003-Megasoft acquires MCI and makes it a wholly owned subsidiary.
  • 2004-XIUS India was merged with Megasoft.
  • 2005-Megasoft acquires a German company.
  • 2006-VisualSoft Technologies was merged with Megasoft.
  • 2007-Megasoft unveils BlueAlly, for PLM and specialized ADMS. Megasoft acquires bcgi inc. a US Nasdaq listed company.
  • 2009 - Megastore divests IT services division at BlueAlly
  • 2010- Megasoft creates innovation centres to focus on identification, nurturing, testing and delivery of additional new solutions to the market.
  • 2011 - Launched two new products- Mobile Touch Transaction Active Poster & Mobile Advertising Product, AdBalue.
  • 2012 - Launched a full 10- inch Android based system in the Actice Poster Product Segment
  • Awarded ISO 9001:2008 certification in Quality Management System

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