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Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Melstar Information Technologies Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 14, 2024, 12:32 am

Market Cap 6.07 Cr.
Current Price 4.25
High / Low 6.30/3.92
Stock P/E0.54
Book Value 5.81
Dividend Yield0.00 %
ROCE363 %
ROE4,178 %
Face Value 10.0
PEG Ratio0.04

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Melstar Information Technologies Ltd

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mudunuru Ltd 24.1 Cr. 7.73 15.6/6.35 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 129 Cr. 144 159/32.355.6 20.0%17.4 %13.6 %
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.8 98.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.7 Cr. 185 245/11031.2 16.80.54 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.87 Cr. 1.48 1.48/0.5821.5 2.080.00 %1.92 %1.94 % 2.00
Industry Average40,136.67 Cr797.0597.64124.350.61%21.70%62.45%6.94

All Competitor Stocks of

Quarterly Result

MonthDec 2017Mar 2018Jun 2018Sep 2018Dec 2018Mar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020
Sales0.810.790.870.870.800.892.213.023.292.600.670.620.53
Expenses1.641.511.721.771.756.462.704.294.054.530.820.930.74
Operating Profit-0.83-0.72-0.85-0.90-0.95-5.57-0.49-1.27-0.76-1.93-0.15-0.31-0.21
OPM %-102.47%-91.14%-97.70%-103.45%-118.75%-625.84%-22.17%-42.05%-23.10%-74.23%-22.39%-50.00%-39.62%
Other Income3.180.350.730.310.507.500.020.010.040.010.000.000.00
Interest0.490.600.490.460.13-0.220.150.170.11-0.160.000.000.00
Depreciation0.15-0.170.000.000.000.000.070.47-0.540.000.000.000.00
Profit before tax1.71-0.80-0.61-1.05-0.582.15-0.69-1.90-0.29-1.76-0.15-0.31-0.21
Tax %1.17%-21.25%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit1.70-0.97-0.61-1.06-0.582.15-0.70-1.90-0.29-1.77-0.15-0.32-0.21
EPS in Rs1.19-0.68-0.43-0.74-0.411.51-0.49-1.33-0.20-1.24-0.11-0.22-0.15

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020TTM
Sales18.2419.4924.8552.8720.3618.2322.3130.9020.983.303.4311.134.42
Expenses19.0722.2123.5051.3521.9219.8921.1028.6622.637.2411.7013.937.02
Operating Profit-0.83-2.721.351.52-1.56-1.661.212.24-1.65-3.94-8.27-2.80-2.60
OPM %-4.55%-13.96%5.43%2.87%-7.66%-9.11%5.42%7.25%-7.86%-119.39%-241.11%-25.16%-58.82%
Other Income0.930.841.491.631.681.07-0.780.230.123.649.04-1.570.01
Interest0.290.500.520.460.810.921.371.621.701.950.860.28-0.16
Depreciation0.960.930.860.860.840.820.710.650.630.280.010.010.00
Profit before tax-1.15-3.311.461.83-1.53-2.33-1.650.20-3.86-2.53-0.10-4.66-2.43
Tax %1.74%9.97%0.00%20.22%5.23%-3.00%0.00%0.00%-0.52%-7.51%0.00%0.00%
Net Profit-1.13-2.981.461.46-1.45-2.41-1.650.20-3.89-2.72-0.10-4.65-2.45
EPS in Rs-0.79-2.091.021.02-1.02-1.69-1.160.14-2.72-1.90-0.07-3.26-1.72
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2009-20102010-20112011-20122012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-2020
YoY Net Profit Growth (%)-163.72%148.99%0.00%-199.32%-66.21%31.54%112.12%-2045.00%30.08%96.32%-4550.00%
Change in YoY Net Profit Growth (%)0.00%312.71%-148.99%-199.32%133.11%97.74%80.59%-2157.12%2075.08%66.25%-4646.32%

Melstar Information Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2009-2010 to 2019-2020.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:%
Compounded Profit Growth
10 Years:21%
5 Years:30%
3 Years:%
TTM:37467%
Stock Price CAGR
10 Years:-4%
5 Years:23%
3 Years:-11%
1 Year:-3%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:4178%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:10 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1414141414141414141414143
Reserves-1-2-5-6-6-10-13-13-18-20-20-85
Borrowings258991012233331
Other Liabilities181336108111013111110
Total Liabilities333121222822231412991010
Fixed Assets111098876000000
CWIP0001222000000
Investments0000102200000
Other Assets222112131713131212991010
Total Assets333121222822231412991010

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1-0-2131-0-820-01
Cash from Investing Activity +0-30-0-2009-0000
Cash from Financing Activity +-132-0-1-20-1-000-0
Net Cash Flow-00-00-000-010-00

Free Cash Flow

MonthMar 2009Mar 2010Mar 2011Mar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Free Cash Flow-0.83-2.721.35-0.48-6.56-9.66-7.79-6.76-11.65-15.94-10.27-5.80

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2022Mar 2023Mar 2024
Debtor Days128219637353351223578
Inventory Days0
Days Payable
Cash Conversion Cycle128219637353351223578
Working Capital Days1585122672573207183-71
ROCE %15%-4%-8%9%11%-14%-25%-72%-177%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2018Mar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Dec 2023Mar 2024Jun 2024
Promoters47.06%47.06%47.06%47.06%47.06%47.06%47.06%47.06%47.06%47.06%41.07%47.06%
DIIs0.70%0.70%0.70%0.70%0.70%0.70%0.70%0.70%0.00%0.00%0.00%0.00%
Public52.24%52.24%52.24%52.24%52.24%52.24%52.24%52.24%52.94%52.96%58.93%52.94%
No. of Shareholders9,5629,5509,5399,5539,5379,92310,27210,12710,12210,26310,33510,364

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 16Mar 15Mar 14Mar 13Mar 12
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-0.26-1.16-1.70-0.921.04
Diluted EPS (Rs.)-0.26-1.16-1.70-0.921.04
Cash EPS (Rs.)0.22-0.66-1.13-0.321.65
Book Value[Excl.RevalReserv]/Share (Rs.)5.165.456.818.579.49
Book Value[Incl.RevalReserv]/Share (Rs.)5.165.456.818.579.49
Revenue From Operations / Share (Rs.)22.0715.6513.0214.7437.48
PBDIT / Share (Rs.)1.351.54-0.430.182.23
PBIT / Share (Rs.)0.861.05-1.00-0.401.62
PBT / Share (Rs.)-0.23-1.16-1.65-0.971.30
Net Profit / Share (Rs.)-0.26-1.16-1.70-0.911.04
NP After MI And SOA / Share (Rs.)-0.26-1.16-1.70-0.911.04
PBDIT Margin (%)6.139.86-3.321.225.93
PBIT Margin (%)3.936.68-7.72-2.764.33
PBT Margin (%)-1.08-7.43-12.67-6.593.47
Net Profit Margin (%)-1.19-7.43-13.06-6.222.78
NP After MI And SOA Margin (%)-1.19-7.43-13.06-6.222.78
Return on Networth / Equity (%)-5.12-21.35-24.97-10.7010.99
Return on Capital Employeed (%)15.4518.07-14.27-4.6116.66
Return On Assets (%)-1.29-7.50-11.59-4.204.47
Long Term Debt / Equity (X)0.010.000.000.000.00
Total Debt / Equity (X)1.501.130.810.430.12
Asset Turnover Ratio (%)1.241.040.690.632.00
Current Ratio (X)0.610.660.830.981.03
Quick Ratio (X)0.590.660.830.981.03
Interest Coverage Ratio (X)1.221.61-0.670.326.89
Interest Coverage Ratio (Post Tax) (X)0.761.09-1.64-0.624.23
Enterprise Value (Cr.)19.1214.6710.729.4010.30
EV / Net Operating Revenue (X)0.600.650.570.440.19
EV / EBITDA (X)9.896.65-17.3536.363.24
MarketCap / Net Operating Revenue (X)0.250.260.150.200.16
Price / BV (X)1.100.770.290.350.65
Price / Net Operating Revenue (X)0.250.260.150.200.16
EarningsYield-0.04-0.27-0.85-0.290.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Melstar Information Technologies Ltd as of December 21, 2024 is: 133.70

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, Melstar Information Technologies Ltd is Undervalued by 3,045.88% compared to the current share price 4.25

Intrinsic Value of Melstar Information Technologies Ltd as of December 21, 2024 is: 153.58

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, Melstar Information Technologies Ltd is Undervalued by 3,513.65% compared to the current share price 4.25

Last 5 Year EPS CAGR: 14.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of -22.08%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 58.83, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 67.17, which may not be favorable.
    4. The company has higher borrowings (5.38) compared to reserves (-9.00), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (19.27) and profit (-1.54).

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Melstar Information Technologies Ltd:
      1. Net Profit Margin: -1.19%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 15.45% (Industry Average ROCE: 21.7%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: -5.12% (Industry Average ROE: 62.45%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 0.76
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.59
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 0.54 (Industry average Stock P/E: 97.64)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 1.5
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Melstar Information Technology Ltd. is a Public Limited Listed company incorporated on 12/08/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1986PLC040604 and registration number is 040604. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 11.13 Cr. and Equity Capital is Rs. 14.28 Cr. for the Year ended 31/03/2020.
    INDUSTRYADDRESSCONTACT
    IT Consulting & SoftwareUnit No. 1302, 13th floor, �Raheja Centre�, The Free Press Journa Mumbai Maharashtra 400021cs@melstarrtech.com
    www.melstar.com
    Management
    NamePosition Held
    Mr. Vineet Kumar TripathiManaging Director
    Mr. Tarun KashyapExecutive Director
    Mr. Uttam Prakash AgarwalIndependent Director
    Mr. Subhash Kumar VarshneyIndependent Director
    Mr. Rajnikant PatelIndependent Director
    Mrs. Alyzaa MerchantIndependent Director

    FAQ

    What is the latest intrinsic value of Melstar Information Technologies Ltd?

    The latest intrinsic value of Melstar Information Technologies Ltd as on 21 December 2024 is ₹133.70, which is 3045.88% higher than the current market price of ₹4.25. The stock has a market capitalization of 6.07 Cr. and recorded a high/low of 6.30/3.92 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹5 Cr and total liabilities of ₹10 Cr.

    What is the Market Cap of Melstar Information Technologies Ltd?

    The Market Cap of Melstar Information Technologies Ltd is 6.07 Cr..

    What is the current Stock Price of Melstar Information Technologies Ltd as on 21 December 2024?

    The current stock price of Melstar Information Technologies Ltd as on 21 December 2024 is 4.25.

    What is the High / Low of Melstar Information Technologies Ltd stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of Melstar Information Technologies Ltd stocks is 6.30/3.92.

    What is the Stock P/E of Melstar Information Technologies Ltd?

    The Stock P/E of Melstar Information Technologies Ltd is 0.54.

    What is the Book Value of Melstar Information Technologies Ltd?

    The Book Value of Melstar Information Technologies Ltd is 5.81.

    What is the Dividend Yield of Melstar Information Technologies Ltd?

    The Dividend Yield of Melstar Information Technologies Ltd is 0.00 %.

    What is the ROCE of Melstar Information Technologies Ltd?

    The ROCE of Melstar Information Technologies Ltd is 363 %.

    What is the ROE of Melstar Information Technologies Ltd?

    The ROE of Melstar Information Technologies Ltd is 4,178 %.

    What is the Face Value of Melstar Information Technologies Ltd?

    The Face Value of Melstar Information Technologies Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Melstar Information Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE