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Melstar Information Technologies Ltd. Stock Analysis

Small Cap
Evaluated by 80 users | BSE: 532307 | NSE: MELSTAR |
IT - Software
Melstar Information Technologies Ltd. was established in 1986, the company focuses on servicing the Banking, Insurance, Government and IT domains.The company undertakes systems and application management activities, offers specialist technology centers and a highly cost-effective virtual...

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
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed -16.82%11.84%11.82%-5.4%-10.16%3.27%7.73%-17.08%-24.59%-48.02%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 19.524.952.920.418.222.431213.43.4
Y-o-Y Gr. Rt.-27.5%112.8%-61.5%-10.5%22.7%38.4%-32.1%-84.1%2.4%
Adjusted EPS (Rs.) -1.990.951.03-1.02-1.7-0.280.13-2.72-3.29-3.2
Y-o-Y Gr. Rt.-NA8.4%-199%NANANA-2192.3%NANA
Book Value per Share (Rs.) 7.548.569.578.556.815.455.572.720.810.76
Adjusted Net Profit -2.81.41.5-1.5-2.4-0.40.2-3.9-4.7-4.6
Net Op. Cash Flow (Rs. Cr.) -1.411.2-0.3-2.312.91.3-0.4-7.6
Debt to Cash Flow from Ops -2.542.691.6-20.93-3.468.673.267.65-28.06-0.33
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.
Melstar Information Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -17.6%-28.4%-52%2.4%
Adjusted EPS NANA-390.9%NA
Book Value per Share -22.5-35.5-48.5-6.2
Share Price -13.6% -11.2% -8.8% 14.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -23.1611.8111.35-11.24-22.16-4.572.27-64.84-177.22-378.38
Operating Profit Margin (%) -13.275.472.89-7.66-9.165.417.25-7.88-117.48-230.71
Net Profit Margin (%) -14.575.472.78-7.14-13.34-1.790.58-18.49-140.08-133.54
Debt to Equity 0.320.220.130.430.821.131.192.610.092.27
Working Capital Days 1051011033833251981732541,3441,279
Cash Conversion Cycle -21010-531-68-95-256-421
Entity Percentage Holding
Promoters 47.06%
Institutions 0.70%
Non-Institutions 52.24%
Pledged *46.6246.6246.620.0046.6246.6246.6246.6246.6246.62
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Melstar Informn.Tech's performance infers:

Melstar Informn.Tech earnings have grown by 0%, whereas share price has depreciated -11.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

Melstar Informn.Tech share price has depreciated -15.5% annually over the past ten years.

Melstar Information Technologies Ltd. was established in 1986, the company focuses on servicing the Banking, Insurance, Government and IT domains.

The company undertakes systems and application management activities, offers specialist technology centers and a highly cost-effective virtual development environment as part of its offshore operations in India.

Headquartered in Mumbai with IT Technology experts, professionals worldwide and having 6 offices in India including 3

Melstar Information Technologies Ltd. was established in 1986, the company focuses on servicing the Banking, Insurance, Government and IT domains.

The company undertakes systems and application management activities, offers specialist technology centers and a highly cost-effective virtual development environment as part of its offshore operations in India.

Headquartered in Mumbai with IT Technology experts, professionals worldwide and having 6 offices in India including 3 development centers, Melstar is a complete provider of Application Management services and solutions.

They believe in a philosophy of ethical and transparent business practices with all customers, vendors and employees to build long-term relationships based on mutual trust and benefit. They are proud to have global companies like IBM, Citibank, Standard Chartered Bank, Birla Sunlife as their customers.

Services offered by the company:

  • MelSupport- The application supports service, offers services that can be undertaken onsite, off-site, offshore, or any combination thereof.
  • MelSolutions- Melstar offers an offsite facility that significantly smoothes the transition to offshore and provides the client with greater confidence in its capabilities in advance of the work being moved to the offshore centre.
  • MelSoft- Melsoft is the name for a dedicated offshore support and development facility set up on behalf of clients by Melstar and operated as though it were owned by the client; even down to such items as using the client's logos and branding.
  • MelTest- It is an independent Quality Assurance and Testing Service
  • MelConsult- Melstar provides resources from both the local onshore market and its pool of resources in India. It has a long and proven track record in successfully exceeding clients’ expectations in this area.

Clientele:

  • IBM
  • HCL
  • Citi Bank
  • EDS
  • Kotak
  • Standard Chartered
  • HDFC Bank
  • Birla Sun Life

Achievements/ recognition:

  • SEI-CMM Level III
  • ISO 9001:2000 certification.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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