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Megasoft Ltd. Stock Analysis

Small Cap
Evaluated by 215 users | BSE: 532408 | NSE: MEGASOFT |
IT - Software
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,...

Analysis of Financial Track Record

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.
Value Creation
 Dec'09Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 5.66%5.95%1.36%0.72%2.15%1.25%0.88%-1.25%-1.71%1.08%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 88.762.450.146.250.642.73031.128.523.6
Y-o-Y Gr. Rt.--29.7%-19.7%-7.8%9.7%-15.7%-29.7%3.4%-8.2%-17.1%
Adjusted EPS (Rs.) 2.061.780.11-0.210.120.03-0.03-0.82-1.13-0.2
Y-o-Y Gr. Rt.--13.6%-93.8%-290.9%NA-75%-200%NANANA
Book Value per Share (Rs.) 43.837.0638.3138.5739.2331.4932.833.0431.9927.09
Adjusted Net Profit 9.17.90.5-0.90.50.1-0.1-3.7-5-0.9
Net Op. Cash Flow (Rs. Cr.) 58.44.37.333.134.50.65.82.518.348
Debt to Cash Flow from Ops 0.923.972.021.270.4921.962.876.390.930.25
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Megasoft Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -13.7%-14.1%-7.7%-17.1%
Adjusted EPS -177.2%-210.8%NANA
Book Value per Share -5.2-7.1-6.2-15.3
Share Price -8.6% 11.5% -16.6% 17.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'09Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 3.554.40.3-0.540.310.09-0.07-2.5-3.47-0.62
Operating Profit Margin (%) 34.8832.3111.62-1.1515.19-10.7810.36-12.69-9.28-19.66
Net Profit Margin (%) 10.2712.661-2.011.050.31-0.39-11.75-17.53-3.77
Debt to Equity 0.280.10.090.250.10.10.120.110.120.1
Working Capital Days 7576969078996555889371,0521,5431,849
Cash Conversion Cycle 535274282377315271333218291307
Entity Percentage Holding
Promoters 7.24%
Institutions 8.57%
Non-Institutions 84.19%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Megasoft's performance infers:

Megasoft earnings have declined by -210.8%, whereas share price has appreciated 11.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Megasoft share prices over the last 10 years. Here is what we found out:

Megasoft share price has appreciated -14.2% annually over the past ten years.

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

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

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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