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Melstar Information Technologies Ltd (MELSTAR)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 532307 NSE: MELSTAR IT - Software | Small Cap | Melstar Informn.Tech Share Price

₹4.32 0.00 (0.00%)

As on 26-Aug'24 16:01

Melstar Information Technologies Ltd (MELSTAR)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 532307 NSE: MELSTAR IT - Software | Small Cap | Melstar Informn.Tech Share Price

₹4.32 0.00 (0.00%)

As on 26-Aug'24 16:01

Key Metrics
Valuation Multiples
Market Cap
₹7 Cr.
Current Price
₹4.3
52-Week Low / High
₹4 / 5
TTM EPS
₹6.6
TTM Sales
₹0 Cr.
Book Value per Share
₹5.2
P/E Ratio
0.64
In line with its 3-year historical median
Industry PE
22.2
Price to Book (P/B)
0.81
In line with its 3-year historical median
Price to Sales (P/S)
0.00
Lower than its 5-year historical median
EV/EBITDA
0.85
Higher than its 5-year historical median
Dividend Yield
0.00%
Profitability Efficiency
Return on Equity (ROE)
0.00%
Underperforms industry median
Return on Capital Employed (ROCE)
362.73%
Outperforms industry median
Return on Assets (ROA)
121.25%
Operating Profit Margin
0%
Net Profit Margin
-%
Gross Profit Margin
0%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
-
-
Operating Profit Growth (1 Year)
-
-
Net Profit Growth (1 Year)
-
-
Asset Quality
Promoter Holding
55.32%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹-8 Cr.
Equity
₹17.1 Cr.
Face Value
₹10
All Time Low / High
₹1.30 / 383.35

Melstar Information Technologies stock performance

Key Ratios
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M-Cap below 100cr DeciZen not available

Q.1 Is Melstar Information Technologies Ltd a good quality company?
Melstar Information Technologies Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Melstar Information Technologies Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Melstar Information Technologies Ltd vs industry peers?
Melstar Information Technologies Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.
Q.1 Promoter shareholding and pledge status of Melstar Information Technologies Ltd?
Promoters hold 55.32% of the Melstar Information Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Melstar Information Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4.6% based on the current price.

10 Year X-Ray :

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.
Melstar Information Technologies Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % -1.7%10.7%-13.8%-4.4%9.4%-316.7%0%0%0%362.7%-
Value Creation
Index
-1.1-0.2-2.0-1.3-0.3NANANANANA-

Growth Parameters

Sales 22.431213.43.411.11.20000
Sales YoY Gr.-38.4%-32.1%-84.1%2.4%224.5%-89.5%-100%NANA-
Adj EPS -0.30.1-2.7-3.3-3.2-2.4-1.1-0.3-07.96.6
YoY Gr.-NA-2192.3%NANANANANANANA-
BVPS (₹) 5.55.62.70.80.8-2.6-3.8-4-43.95.2
Adj Net
Profit
-0.40.2-3.9-4.7-4.6-3.4-1.6-0.4-011.311
Cash Flow from Ops. 12.91.3-0.4-7.61.6-1.10-0.10.5-
Debt/CF from Ops. 8.73.37.7-28.1-0.31.9-2.671.1-23.85.3-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales -100%-100%-100%NA
Adj EPS NANANANA
BVPS-3.6%38.8%NANA
Share Price -2.7% 13% 12.1% -

Key Financial Parameters

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
-4.62.3-64.8-177.2-378.429236.37.60.24151.4144.3
Op. Profit
Mgn %
5.47.3-7.9-117.5-230.7-24.1-135.500059.7
Net Profit
Mgn %
-1.80.6-18.5-140.1-133.5-30.7-135000INF
Debt to
Equity
1.11.22.610.12.3-0.8-0.6-0.5-0.50.50
Working Cap
Days
1981732541,3441,2793622,972000321
Cash Conv.
Cycle
1-68-95-256-421-213-695000104

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales22.3630.9521.023.353.4311.131.17000
Operating Expenses > + 21.1528.7122.677.2911.6815.583.050.410.010.54
Manufacturing Costs0.350.340.480.230.330.530.110.0100
Material Costs00.0200000000
Employee Cost 17.1816.4114.864.674.799.751.77000
Other Costs > 3.6311.947.342.396.565.301.160.400.010.54
Operating Profit > 1.202.24-1.66-3.94-8.26-4.45-1.87-0.41-0.01-0.54
Operating Profit Margin (%) 5.4%7.2%-7.9%-117.0%-240.0%-39.9%-159.0%---
Other Income > + 1.010.230.123.649.040.080.100.01012.14
Exceptional Items > -1.79000000000
Interest > 1.371.621.701.950.860.280.01000.32
Depreciation > 0.710.650.630.280.010.010000
Profit Before Tax > -1.650.20-3.86-2.53-0.10-4.65-1.78-0.41-0.0111.28
Tax > 000.020.190-00000
Profit After Tax -1.650.20-3.89-2.72-0.10-4.65-1.78-0.41-0.0111.28
PAT Margin (%) -7.4%0.7%-18.5%-81.1%-3.0%-41.8%-151.0%---
Adjusted EPS (₹)-1.20.1-2.7-1.9-0.1-3.3-1.3-0.3-0.07.9
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Valuation of Melstar Informn.Tech - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund + 7.797.964.031.261.15-3.49-5.28-5.69-5.705.58
Share Capital 14.2814.2814.2814.2814.2814.2814.2814.2814.2814.28
Reserves -6.50-6.33-10.25-13.02-13.13-17.78-19.56-19.97-19.98-8.70
Debt +8.799.4710.1111.642.472.972.972.972.972.88
Long Term Debt00.030.010000000
Short Term Debt8.799.4310.0911.642.472.972.972.972.972.88
Minority Interest0000000000
Trade Payables3.737.855.506.867.257.556.326.426.310.78
Others Liabilities 1.802.452.833.672.915.024.985.045.040.73
Total Liabilities 22.1127.7322.4723.4313.7912.058.998.748.629.99

Fixed Assets

Net Fixed Assets +8.177.626.966.280.010.010000
Gross Block18.4818.5818.5017.421.371.381.381.381.381.38
Accumulated Depreciation10.3110.9611.5411.141.361.371.381.381.381.38
CWIP 0.912.332.352.35000000
Investments 0.350.950.462.261.910.140000
Inventories0000000000
Trade Receivables4.464.482.031.100.332.381.711.711.711.44
Cash Equivalents 0.110.030.130.180.031.300.070.220.100.32
Others Assets 8.1212.3310.5211.2611.518.217.206.816.818.22
Total Assets 22.1127.7322.4723.4313.7912.058.998.748.629.99

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity + 1.012.911.32-0.42-7.561.55-1.140.04-0.120.54
PBT -1.650.20-3.86-2.53-0.10-4.65-1.78-0.41-0.0111.28
Adjustment 1.252.152.682.251.222.050.3000-11.82
Changes in Working Capital 2.142.041.63-0.28-8.684.160.270.19-0.111.08
Tax Paid -0.73-1.480.880.14000.070.2600
Cash Flow From Investing Activity + -0.48-2.120.460.408.61-0.01-0.13000
Capex -0.93-1.52-0.030.408.61-0.010000
Net Investments -0.35-0.600.490000000
Others 0.8000000-0.13000
Cash Flow From Financing Activity + -0.49-0.88-1.670.06-1.21-0.280.050.110-0.32
Net Proceeds from Shares 0000000.050.1100
Net Proceeds from Borrowing 0000000000
Interest Paid -1.33-1.54-1.65-1.94-0.86-0.28000-0.32
Dividend Paid 0000000000
Others 0.840.66-0.022.01-0.3500000
Net Cash Flow 0.04-0.090.110.05-0.161.27-1.220.15-0.120.22

Financial Ratio

PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)-18.892.55-65.6-107.75-9.01N/AN/AN/AN/A0
ROCE (%)-1.6510.73-13.78-4.369.38N/AN/AN/AN/A362.73
Asset Turnover Ratio1.041.240.840.150.180.860.11000
PAT to CFO Conversion(x)N/A14.55N/AN/AN/AN/AN/AN/AN/A0.05
Working Capital Days
Receivable Days6252.7056.50170.607644.50637.40000
Inventory Days0000000000
Payable Days0000000000

Management X-Ray

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 (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Melstar Information Technologies Ltd FAQs

The current trading price of Melstar Informn.Tech on 26-Aug-2024 16:01 is ₹4.32.

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 25-Aug-2024 the market cap of Melstar Informn.Tech stood at ₹7.26 Cr

The latest P/E ratio of Melstar Informn.Tech as of 25-Aug-2024 is 0.64.

The latest P/B ratio of Melstar Informn.Tech as of 25-Aug-2024 is 0.81.

The 52-week high of Melstar Informn.Tech is ₹4.76 and the 52-week low is ₹4.32.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Melstar Informn.Tech is ₹0.00 ( Cr.) .

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

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

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

About Melstar Information Technologies Ltd

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.
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