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Last Updated on: 30 May, 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.
INDUSTRYADDRESSCONTACT
IT Consulting & Software85, Kutchery Road, Mylapore, Chennai (Madras) Tamil Nadu 600004investors@megasoft.com
http://www.megasoft.com
Management
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

Basic Stock Data of Megasoft Ltd

Last Updated: May 30, 2024, 6:19 am

Market Cap 521 Cr.
Current Price 70.6
High / Low107/28.6
Stock P/E
Book Value 24.5
Dividend Yield0.00 %
ROCE7.58 %
ROE6.82 %
Face Value 10.0
PEG Ratio0.00

Competitors of Megasoft Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Infosys Ltd 6,25,515 Cr. 1,5071,733/1,18525.6 1932.26 %40.5 %31.8 % 5.00
Blue Cloud Softech Solutions Ltd 1,843 Cr. 84.5117/46.1321 3.030.00 %20.2 %14.6 % 2.00
Rolta India Ltd 98.7 Cr. 5.957.45/1.45 5470.00 %6.48 %% 10.0
Bodhtree Consulting Ltd 15.2 Cr. 7.597.92/5.15 7.330.00 %1.62 %8.70 % 10.0
Intense Technologies Ltd 265 Cr. 113158/59.217.0 54.90.44 %17.0 %13.1 % 2.00
Industry Average125,547.38 Cr343.6172.72161.050.54%17.16%13.64%5.80

Megasoft Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales15.1115.4212.6512.6813.4013.671.970.000.000.000.000.000.00
Expenses13.7516.4512.8815.8914.6027.357.326.013.372.972.592.492.41
Operating Profit1.36-1.03-0.23-3.21-1.20-13.68-5.35-6.01-3.37-2.97-2.59-2.49-2.41
OPM %9.00%-6.68%-1.82%-25.32%-8.96%-100.07%-271.57%
Other Income1.292.823.774.983.7717.608.9611.3111.4311.1111.2410.807.74
Interest1.381.391.060.640.470.770.732.403.504.274.174.144.20
Depreciation1.020.310.830.860.841.080.900.620.660.660.670.670.67
Profit before tax0.250.091.650.271.262.071.982.283.903.213.813.500.46
Tax %36.00%-100.00%0.00%0.00%0.00%29.95%0.00%0.00%0.00%0.00%14.44%2.29%0.00%
Net Profit0.160.191.640.271.261.451.982.282.062.513.46-3.27-4.80
EPS in Rs0.020.030.220.040.170.200.270.310.280.340.47-0.44-0.65

Last Updated: May 5, 2024, 8:11 pm

Megasoft Ltd Quarterly Chart

Megasoft Ltd Profit & Loss

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales143.12114.06102.7498.1962.8967.1966.2661.8756.7359.4052.401.970.00
Expenses109.1192.5880.2173.4347.3361.5756.6559.9051.3555.2970.7219.6710.46
Operating Profit34.0121.4822.5324.7615.565.629.611.975.384.11-18.32-17.70-10.46
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 Income6.773.063.451.060.797.640.998.646.506.8630.1242.8140.89
Interest9.7810.5811.1912.037.875.945.206.156.835.492.9410.9016.78
Depreciation12.9012.3311.8713.556.705.124.313.764.383.633.612.842.67
Profit before tax18.101.632.920.241.782.201.090.700.671.855.2511.3710.98
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 Profit17.491.172.680.741.302.721.690.330.711.854.628.83-2.10
EPS in Rs2.370.160.360.100.180.370.230.040.100.250.631.20-0.28
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%
TTM:-100%
Compounded Profit Growth
10 Years:21%
5 Years:36%
3 Years:123%
TTM:-152%
Stock Price CAGR
10 Years:29%
5 Years:66%
3 Years:108%
1 Year:134%
Return on Equity
10 Years:1%
5 Years:2%
3 Years:2%
Last Year:4%

Last Updated: April 16, 2024, 7:04 pm

Megasoft Ltd Balance Sheet

Last Updated: May 2, 2024, 6:54 am

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
Reserves169.92169.58166.31125.5783.5987.3891.0193.0596.1097.38110.73119.56119.75
Borrowings99.78107.5892.0593.6498.1145.9847.0540.8240.1534.4529.03145.80148.02
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
CWIP0.000.000.000.000.000.0057.6130.810.000.000.000.000.00
Investments12.1212.1212.1212.120.000.000.000.000.000.000.00132.81126.34
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
Promoters0.00%0.00%0.00%42.55%43.77%43.77%43.77%43.77%43.77%43.77%43.77%43.77%
DIIs8.57%8.57%0.04%0.04%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.12%
Public91.43%91.43%99.96%57.41%56.23%56.23%56.23%56.23%56.25%56.24%56.23%56.11%
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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.200.740.420.160.08
Diluted EPS (Rs.)1.200.740.420.160.08
Cash EPS (Rs.)1.931.121.241.150.92
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.)3.271.142.482.682.40
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 (%)577.0110.003.101.171.13
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 (%)6.022.054.504.804.58
Return On Assets (%)2.341.610.580.210.10
Long Term Debt / Equity (X)0.830.150.000.000.00
Total Debt / Equity (X)0.880.150.250.350.37
Asset Turnover Ratio (%)0.010.040.050.060.08
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)152.027.001.090.981.10
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
EarningsYield0.050.010.040.030.01

Megasoft Ltd Profitability Ratios (%)

Megasoft Ltd Liquidity Ratios

Megasoft Ltd Liquidity Ratios (%)

Megasoft Ltd Interest Coverage Ratios (%)

Megasoft Ltd Valuation Ratios

Fair Value

Fair Value: ₹25.56

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.

Overvalued: 63.79% compared to the current price ₹70.6

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: ₹23.97

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 66.05% compared to the current price ₹70.6

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -6.24%

*Investments are subject to market risks

Strength and Weakness of Megasoft Ltd Stock

StrengthWeakness
  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 (4.52 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.

FAQ

What is the latest fair value of Megasoft Ltd?

The latest fair value of Megasoft Ltd is ₹25.56.

What is the Market Cap of Megasoft Ltd?

The Market Cap of Megasoft Ltd is 521 Cr..

What is the current Stock Price of Megasoft Ltd as on 30 May 2024?

The current stock price of Megasoft Ltd as on 30 May 2024 is ₹70.6.

What is the High / Low of Megasoft Ltd stocks in FY 2024?

In FY 2024, the High / Low of Megasoft Ltd stocks is 107/28.6.

What is the Stock P/E of Megasoft Ltd?

The Stock P/E of Megasoft Ltd is .

What is the Book Value of Megasoft Ltd?

The Book Value of Megasoft Ltd is 24.5.

What is the Dividend Yield of Megasoft Ltd?

The Dividend Yield of Megasoft Ltd is 0.00 %.

What is the ROCE of Megasoft Ltd?

The ROCE of Megasoft Ltd is 7.58 %.

What is the ROE of Megasoft Ltd?

The ROE of Megasoft Ltd is 6.82 %.

What is the Face Value of Megasoft Ltd?

The Face Value of Megasoft 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 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 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