Megasoft Ltd - Stock Valuation and Financial Performance

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

Megasoft Share Price

81.39 0.45 0.56%
as on 12-Apr'24 10:18

DeciZen - make an informed investing decision on Megasoft

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Megasoft stock performance -

mw4me loader
P/E Ratio (SA):
55.84
Market Cap:
576.3 Cr.
52-wk low:
28.6
52-wk high:
107.2

Is Megasoft Ltd an attractive stock to invest in?

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 Semi Strong which suggest that the price of Megasoft Ltd is likely to Rise-somewhat 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'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2.2%1.3%0.9%-1.3%-1.7%1.1%1.6%2.3%2.6%6.7%-
Value Creation
Index
-0.9-0.9-0.9-1.1-1.1-0.9-0.9-0.8-0.8-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 50.642.73031.128.523.620.316.514.120
Sales YoY Gr.--15.7%-29.7%3.4%-8.2%-17.1%-14%-19%-14.3%-86%-
Adj EPS 0.10-0-0.8-1.1-0.2-00.40.51.51.4
YoY Gr.--75%-200%NANANANANA25%224.4%-
BVPS (₹) 39.231.532.8333227.127.227.521.322.823.8
Adj Net
Profit
0.50.1-0.1-3.7-5-0.9-0.11.63.310.810
Cash Flow from Ops. 34.50.65.82.518.3487.110.92312.9-
Debt/CF from Ops. 0.5222.96.40.90.31.30.21.111.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -30.3%-41.4%-54.1%-86%
Adj EPS 32%NANA224.4%
BVPS-5.9%-6.5%-5.7%7.3%
Share Price 27.8% 63.6% 102.2% 164.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
0.30.1-0.1-2.5-3.5-0.6-01.125.76
Op. Profit
Mgn %
15.2-10.810.4-12.7-9.3-19.75.66-129.9-896.8NAN
Net Profit
Mgn %
1.10.3-0.4-11.8-17.5-3.8-0.29.723.3545.8INF
Debt to
Equity
0.10.10.10.10.10.10.100.20.9-
Working Cap
Days
6555889371,0521,5431,8532,1192,5091,7608,0080
Cash Conv.
Cycle
3152713332182913084445602866790

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.00%

Sales growth has been subdued in last 3 years -54.08%

Sales growth is not so good in last 4 quarters at -50.00%

Latest Financials - Megasoft Ltd.

Standalone Consolidated
TTM EPS (₹) 1.4 -0.3
TTM Sales (₹ Cr.) 0 0
BVPS (₹.) 23.8 22.5
Reserves (₹ Cr.) 102 92
P/BV 3.29 3.47
PE 55.84 0.00
From the Market
52 Week Low / High (₹) 28.55 / 107.22
All Time Low / High (₹) 4.08 / 205.00
Market Cap (₹ Cr.) 576
Equity (₹ Cr.) 73.8
Face Value (₹) 10
Industry PE 33.5

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSDec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales5153303129242016142
Operating Expenses 43592735312819163320
Manufacturing Costs2122222110
Material Costs71339921000
Employee Cost 15191516161289104
Other Costs 192679513962115
Operating Profit 8-63-4-3-511-18-18
Operating Profit Margin (%) 15.2%-10.8%10.2%-14.3%-9.3%-19.7%5.6%4.2%-130.0%-897.0%
Other Income 41218110772742
Interest 53223443211
Depreciation 3311113333
Exceptional Items 0000000031
Profit Before Tax 3011-6111611
Tax 0-10-1-100010
Profit After Tax 3101-5011611
PAT Margin (%) 5.7%1.2%1.4%3.7%-17.3%1.7%2.7%8.4%39.6%582.4%
Adjusted EPS (₹)0.70.10.10.3-1.10.10.10.30.81.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSDec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 174174145146142148148150185196
Share Capital 44444444444444447474
Reserves 12913010110297103104105111122
Minority Interest0000000000
Debt1717171617128124138
Long Term Debt0000000024138
Short Term Debt1717171617128100
Trade Payables4141514231212980
Others Liabilities 95552701141221184045
Total Liabilities 203209182228252286290278256379

Fixed Assets

Gross Block9162757028121155161197186
Accumulated Depreciation4215141516172023127
Net Fixed Assets4947615513105135138185179
CWIP 000058310000
Investments 69695656563434347136
Inventories0000000000
Trade Receivables426133364838452890
Cash Equivalents 52310101348
Others Assets38313080777776772256
Total Assets 203209182228252286290278256379

Cash Flow

(All Figures are in Crores.)
PARTICULARSDec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 3416318487112313
PBT 3011-6111611
Adjustment 11731144107209
Changes in Working Capital 20-62-101944-43-3-7
Tax Paid 00011000-10
Cash Flow From Investing Activity -1-1-3-2-16-39-1-1-42-147
Capex -1-1-14-2-1-38-31-104
Net Investments 0012000005-135
Others 00-10-160310-47-15
Cash Flow From Financing Activity -31-3-2-2-2-9-7-1051103
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -5-3-2-2-3-4-4-3-2-11
Dividend Paid 0000000000
Others -250001-5-4-753114
Net Cash Flow 3-30-201-1032-30
PARTICULARSDec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)1.690.350.260.78-3.430.310.461.154.017.06
ROCE (%)4.231.721.871.82-1.443.13.23.255.399.01
Asset Turnover Ratio0.240.260.150.150.120.090.070.060.050.01
PAT to CFO Conversion(x)11.331N/A3N/AN/A7113.831.18
Working Capital Days
Receivable Days3483515684055366637438074810
Inventory Days0000000000
Payable Days1272511,4815677502,7444,3288,38008,443

Megasoft Ltd Stock News

Megasoft Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Megasoft on 12-Apr-2024 10:18 is ₹81.39.
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 12-Apr-2024 10:18 the market cap of Megasoft stood at ₹576.3.
The latest P/E ratio of Megasoft as of 12-Apr-2024 10:18 is 55.84.
The latest P/B ratio of Megasoft as of 12-Apr-2024 10:18 is 3.29.
The 52-week high of Megasoft is ₹107.2 and the 52-week low is ₹28.55.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Megasoft is ₹0.00 ( 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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