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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Megasoft Ltd

About the Company - Megasoft Ltd

Megasoft Ltd. is a Public Limited Listed company incorporated on 29/06/1999 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L24100TN1999PLC042730 and registration number is 042730. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 14.11 Cr. and Equity Capital is Rs. 73.77 Cr. for the Year ended 31/03/2022.
IT Consulting & Software85, Kutchery Road, Mylapore, Chennai (Madras) Tamil Nadu
NamePosition Held
Mr. Anish MathewInd. Non-Executive Director
Mr. Krishna YeachurNon Exe.Non Ind.Director
Ms. Leona AmbujaInd. Non-Executive Director
Mr. Kalyan Vijay SivalenkaNon Exe.Non Ind.Director
Mr. Sunil Kumar KalidindiExecutive Director & CEO
Mr. Suryanarayana Raju NandyalaInd. Non-Executive Director

Megasoft Ltd. Share Price Update

Share PriceValue
Previous Day₹66.10

Basic Stock Data of Megasoft Ltd

Market Cap 775 Cr.
Current Price 105
High / Low106/19.9
Stock P/E
Book Value 26.2
Dividend Yield0.00 %
ROCE7.72 %
ROE4.17 %
Face Value 10.0

Data Source:

Competitors of Megasoft Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ace Software Exports Ltd 42.8 Cr. 91.591.5/14.512.9 45.80.00 %1.29 %0.81 % 10.0
Sonata Software Ltd 23,303 Cr. 831866/34354.1 51.40.97 %39.1 %37.7 % 1.00
Zensar Technologies Ltd 12,068 Cr. 533644/25919.7 1440.94 %14.5 %11.2 % 2.00
Avance Technologies Ltd 281 Cr. 1.421.42/0.04103 1.880.00 %%% 1.00
Melstar Information Technologies Ltd 7.28 Cr. 5.106.30/1.85 2.770.00 %177 %% 10.0
Industry Average73.22 Cr292.437.9449.170.38%46.38%9.94%4.8

Megasoft Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Operating Profit1.941.36-1.03-0.23-3.21-1.20-13.68-5.35-6.01-3.37-2.97-2.59-2.49
OPM %12.61%9.00%-6.68%-1.82%-25.32%-8.96%-100.07%-271.57%
Other Income1.271.292.823.774.983.7717.608.9611.3111.4311.1111.2410.80
Profit before tax0.730.250.091.650.
Tax %0.00%36.00%-100.00%0.00%0.00%0.00%29.95%0.00%0.00%0.00%0.00%14.44%2.29%
Net Profit0.730.160.191.640.271.261.451.982.282.062.513.46-3.27
EPS in Rs0.

Megasoft Ltd Quarterly Chart

Megasoft Ltd Profit & Loss

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit34.0121.4822.5324.7615.565.629.611.975.384.11-18.32-17.70-11.42
OPM %23.76%18.83%21.93%25.22%24.74%8.36%14.50%3.18%9.48%6.92%-34.96%-898.48%
Other Income6.773.063.451.060.797.640.998.646.506.8630.1242.8144.58
Profit before tax18.101.632.920.241.782.201.090.700.671.855.2511.3714.42
Tax %3.37%28.83%8.22%-208.33%26.40%-23.64%-55.05%52.86%-5.97%0.00%11.81%0.00%
Net Profit17.491.172.680.741.302.721.690.330.711.854.628.834.76
EPS in Rs2.370.160.360.100.180.370.
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%

Megasoft Ltd Profit & Loss Yearly Chart

Megasoft Ltd Growth

Compounded Sales Growth
10 Years:-33%
5 Years:-51%
3 Years:-67%
Compounded Profit Growth
10 Years:21%
5 Years:36%
3 Years:123%
Stock Price CAGR
10 Years:30%
5 Years:74%
3 Years:114%
1 Year:206%
Return on Equity
10 Years:1%
5 Years:2%
3 Years:2%
Last Year:4%

Megasoft Ltd Balance Sheet

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital44.2744.2744.2744.2744.2744.2744.2744.2744.2744.2773.7773.7773.77
Other Liabilities21.5938.8248.6748.7755.9595.52114.50143.60150.74141.2372.6237.6738.31
Total Liabilities335.56360.25351.30312.25281.92273.15296.83321.74331.26317.33286.15376.80379.85
Fixed Assets215.84209.17204.71192.54193.73186.87141.09207.73242.75247.98204.11179.19178.02
Other Assets107.60138.96134.47107.5988.1986.2898.1383.2088.5169.3582.0464.8075.49
Total Assets335.56360.25351.30312.25281.92273.15296.83321.74331.26317.33286.15376.80379.85

Megasoft Ltd Reserves and Borrowings Chart

Megasoft Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 70.55-1.4927.99-14.5016.3744.9415.6951.2817.4319.8616.4712.68
Cash from Investing Activity -28.05-5.58-7.18-1.34-11.669.14-11.81-37.96-6.30-3.29-10.05-130.81
Cash from Financing Activity -42.0318.11-30.119.40-3.33-58.05-3.82-11.35-7.88-15.6322.0585.17
Net Cash Flow0.4711.04-9.30-6.441.38-3.980.061.973.250.9328.48-32.96

Megasoft Ltd Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days130.68207.62234.94326.30377.30343.16411.00344.94381.73191.35158.190.00
Inventory Days
Days Payable
Cash Conversion Cycle130.68207.62234.94326.30377.30343.16411.00344.94381.73191.35158.190.00
Working Capital Days105.71210.85203.39209.47167.96-8.85-51.17-314.21-355.61-394.06-57.266,395.84
ROCE %9.31%3.84%4.52%4.33%3.96%0.40%3.49%3.80%4.18%4.12%2.45%7.72%

Megasoft Ltd Financial Efficiency Indicators Chart

Megasoft Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders22,22923,46726,09931,25933,88233,60334,53433,85433,10932,56233,29730,950

Megasoft Ltd Shareholding Pattern Chart

No. of Megasoft Ltd Shareholders

This stock is not held by any mutual fund

Megasoft Ltd ROCE Trend

Megasoft Ltd EPS Trend

Megasoft Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Basic EPS (Rs.)1.200.740.420.160.08
Diluted EPS (Rs.)1.200.740.420.160.08
Cash EPS (Rs.)1.931.
Book Value[Excl.RevalReserv]/Share (Rs.)22.4521.2525.7325.4424.75
Book Value[Incl.RevalReserv]/Share (Rs.)26.2125.0132.0031.7131.02
Revenue From Operations / Share (Rs.)0.267.1013.4212.8213.98
PBDIT / Share (Rs.)
PBIT / Share (Rs.)2.890.641.661.691.55
PBT / Share (Rs.)1.540.710.410.150.15
Net Profit / Share (Rs.)1.540.620.410.150.07
NP After MI And SOA / Share (Rs.)1.200.620.410.150.07
PBDIT Margin (%)1225.8015.9918.4520.9217.14
PBIT Margin (%)1081.689.1012.3413.2111.07
PBT Margin (%)577.0110.
Net Profit Margin (%)577.018.813.111.240.54
NP After MI And SOA Margin (%)447.968.813.111.240.54
Return on Networth / Equity (%)5.332.941.620.620.30
Return on Capital Employeed (%)
Return On Assets (%)2.341.610.580.210.10
Long Term Debt / Equity (X)0.830.
Total Debt / Equity (X)0.880.150.250.350.37
Asset Turnover Ratio (%)
Current Ratio (X)2.541.500.430.490.47
Quick Ratio (X)2.541.500.430.490.47
Interest Coverage Ratio (X)2.222.852.001.741.73
Interest Coverage Ratio (Post Tax) (X)1.961.411.341.101.05
Enterprise Value (Cr.)299.62366.5764.8155.7568.19
EV / Net Operating Revenue (X)
EV / EBITDA (X)12.4043.735.914.706.43
MarketCap / Net Operating Revenue (X)82.607.230.710.390.49
Price / BV (X)0.982.420.370.190.27
Price / Net Operating Revenue (X)82.667.230.710.390.49

Megasoft Ltd Profitability Ratios (%)

Megasoft Ltd Liquidity Ratios

Megasoft Ltd Liquidity Ratios (%)

Megasoft Ltd Interest Coverage Ratios (%)

Megasoft Ltd Valuation Ratios

Fair Value of Megasoft Ltd Stock

Fair Value: ₹16.72

The stock is overvalued by 84.08% compared to the current price ₹105

*Investments are subject to market risks

Strength and Weakness of Megasoft Ltd Stock

  1. The stock is trading at a low valuation with an average P/B ratio of 1.69 and average Dividend Yield of 225.48%.
  2. The stock has a low average Working Capital Days of -23.15, which is a positive sign.
  3. The company has higher reserves (117.69 cr) compared to borrowings (78.65 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (68.22 cr) and profit (4.79 cr) over the years.
  1. The stock has a low average ROCE of 4.34%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 258.93, which may not be favorable.

About the Author

Author Avatar

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 Megasoft 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 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