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Last Updated on: 18 February, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Megasoft Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 18, 2025, 2:33 am

Market Cap 453 Cr.
Current Price 61.4
High / Low 111/50.0
Stock P/E
Book Value 20.3
Dividend Yield0.00 %
ROCE7.58 %
ROE6.82 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Megasoft Ltd

Competitors of Megasoft Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
Visesh Infotecnics Ltd 125 Cr. 0.33 0.72/0.33 1.140.00 %0.88 %0.82 % 1.00
Mudunuru Ltd 18.4 Cr. 5.89 15.6/5.51 0.340.00 %72.9 %374 % 2.00
Naapbooks Ltd 99.6 Cr. 110 159/51.642.8 20.00.00 %17.4 %13.6 % 10.0
IB Infotech Enterprises Ltd 24.0 Cr. 188 245/11330.8 16.80.53 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 7.19 Cr. 1.55 1.55/0.9120.0 2.080.00 %1.92 %1.94 % 2.00
Industry Average20,337.23 Cr652.2078.62124.060.79%21.59%63.63%6.89

All Competitor Stocks of Megasoft Ltd

Quarterly Result

MetricDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales 15.1115.4212.6512.6813.4013.671.970.000.000.000.000.000.00
Expenses 13.7516.4512.8815.8914.6027.357.326.013.372.972.592.492.41
Operating Profit 1.36-1.03-0.23-3.21-1.20-13.68-5.35-6.01-3.37-2.97-2.59-2.49-2.41
OPM % 9.00%-6.68%-1.82%-25.32%-8.96%-100.07%-271.57%
Other Income 1.292.823.774.983.7717.608.9611.3111.4311.1111.2410.807.74
Interest 1.381.391.060.640.470.770.732.403.504.274.174.144.20
Depreciation 1.020.310.830.860.841.080.900.620.660.660.670.670.67
Profit before tax 0.250.091.650.271.262.071.982.283.903.213.813.500.46
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 Profit 0.160.191.640.271.261.451.982.282.062.513.46-3.27-4.80
EPS in Rs 0.020.030.220.040.170.200.270.310.280.340.47-0.44-0.65

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MetricDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales 143.12114.06102.7498.1962.8967.1966.2661.8756.7359.4052.401.970.00
Expenses 109.1192.5880.2173.4347.3361.5756.6559.9051.3555.2970.7219.6710.46
Operating Profit 34.0121.4822.5324.7615.565.629.611.975.384.11-18.32-17.70-10.46
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 Income 6.773.063.451.060.797.640.998.646.506.8630.1242.8140.89
Interest 9.7810.5811.1912.037.875.945.206.156.835.492.9410.9016.78
Depreciation 12.9012.3311.8713.556.705.124.313.764.383.633.612.842.67
Profit before tax 18.101.632.920.241.782.201.090.700.671.855.2511.3710.98
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 Profit 17.491.172.680.741.302.721.690.330.711.854.628.83-2.10
EPS in Rs 2.370.160.360.100.180.370.230.040.100.250.631.20-0.28
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%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)75.68%109.23%-37.87%-80.47%115.15%160.56%149.73%91.13%
Change in YoY Net Profit Growth (%)0.00%33.56%-147.10%-42.61%195.62%45.41%-10.83%-58.60%

Megasoft Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-100%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-1487%
Stock Price CAGR
10 Years:29%
5 Years:59%
3 Years:7%
1 Year:-26%
Return on Equity
10 Years:0%
5 Years:0%
3 Years:-1%
Last Year:-7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:32 pm

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 44444444444444444474747474
Reserves 17016612684879193969711112010776
Borrowings 108929498464741403429146147143
Other Liabilities 394949569611414415114173383882
Total Liabilities 360351312282273297322331317286377366374
Fixed Assets 209205193194187141208243248204179187197
CWIP 000005831000000
Investments 121212000000013311280
Other Assets 13913410888869883896982656697
Total Assets 360351312282273297322331317286377366374

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-128-14164516511720161542
Cash from Investing Activity +-6-7-1-129-12-38-6-3-10-133-8
Cash from Financing Activity +18-309-3-58-4-11-8-162285-19
Net Cash Flow11-9-61-4023128-3315

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow34.01-86.52-69.47-69.24-82.44-40.38-37.39-39.03-34.62-29.89-47.32-163.70

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

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2082353263773434113453821911580
Inventory Days
Days Payable
Cash Conversion Cycle2082353263773434113453821911580
Working Capital Days211203209168-9-51-314-356-394-576,396
ROCE %4%5%4%4%0%3%4%4%4%2%8%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters0.00%42.55%43.77%43.77%43.77%43.77%43.77%43.77%43.77%43.77%43.54%42.77%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.05%0.07%
DIIs0.04%0.04%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.12%0.00%0.00%
Public99.96%57.41%56.23%56.23%56.23%56.23%56.25%56.24%56.23%56.11%56.40%57.16%
No. of Shareholders26,09931,25933,88233,60334,53433,85433,10932,56233,29730,95033,63634,180

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 10.0010.0010.0010.0010.00
Basic EPS (Rs.) -1.731.200.740.420.16
Diluted EPS (Rs.) -1.731.200.740.420.16
Cash EPS (Rs.) 1.461.931.121.241.15
Book Value[Excl.RevalReserv]/Share (Rs.) 20.7222.4521.2525.7325.44
Book Value[Incl.RevalReserv]/Share (Rs.) 24.4826.2125.0132.0031.71
Revenue From Operations / Share (Rs.) 0.000.267.1013.4212.82
PBDIT / Share (Rs.) 3.863.271.142.482.68
PBIT / Share (Rs.) 3.432.890.641.661.69
PBT / Share (Rs.) 1.111.540.710.410.15
Net Profit / Share (Rs.) 1.031.540.620.410.15
NP After MI And SOA / Share (Rs.)-1.731.200.620.410.15
PBDIT Margin (%) 0.001225.8015.9918.4520.92
PBIT Margin (%) 0.001081.689.1012.3413.21
PBT Margin (%) 0.00577.0110.003.101.17
Net Profit Margin (%) 0.00577.018.813.111.24
NP After MI And SOA Margin (%)0.00447.968.813.111.24
Return on Networth / Equity (%) -8.335.332.941.620.62
Return on Capital Employeed (%) 7.436.022.054.504.80
Return On Assets (%) -3.482.341.610.580.21
Long Term Debt / Equity (X) 0.880.830.150.000.00
Total Debt / Equity (X) 0.940.880.150.250.35
Asset Turnover Ratio (%) 0.000.010.040.050.06
Current Ratio (X) 2.062.541.500.430.49
Quick Ratio (X) 2.062.541.500.430.49
Interest Coverage Ratio (X) 1.672.222.852.001.74
Interest Coverage Ratio (Post Tax) (X) 1.441.961.411.341.10
Enterprise Value (Cr.) 785.25299.62366.5764.8155.75
EV / Net Operating Revenue (X) 0.00152.027.001.090.98
EV / EBITDA (X) 27.5812.4043.735.914.70
MarketCap / Net Operating Revenue (X) 0.0082.607.230.710.39
Price / BV (X) 4.310.982.420.370.19
Price / Net Operating Revenue (X) 0.0082.667.230.710.39
EarningsYield -0.010.050.010.040.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Megasoft Ltd as of February 18, 2025 is: ₹16.95

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 February 18, 2025, Megasoft Ltd is Overvalued by 72.39% compared to the current share price ₹61.40

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

Intrinsic Value of Megasoft Ltd as of February 18, 2025 is: 15.89

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 February 18, 2025, Megasoft Ltd is Overvalued by 74.12% compared to the current share price ₹61.40

Default values used*: Default 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

StrengthWeakness
  1. The stock has a low average Working Capital Days of -32.00, which is a positive sign.
  2. The company has higher reserves (109.54 cr) compared to borrowings (81.92 cr), indicating strong financial stability.
  3. 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 4.17%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 248.00, which may not be favorable.

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 Megasoft Ltd:
    1. Net Profit Margin: 0%
      • 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: 7.43% (Industry Average ROCE: 21.59%)
      • 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%: -8.33% (Industry Average ROE: 63.63%)
      • 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): 1.44
      • 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: 2.06
      • 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 (Industry average Stock P/E: 78.62)
      • 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: 0.94
      • 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

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. 0.00 Cr. and Equity Capital is Rs. 73.77 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
IT Consulting & Software85, Kutchery Road, Mylapore, Chennai (Madras) Tamil Nadu 600004investors@megasoft.com
http://www.megasoft.com
Management
NamePosition Held
Mr. Sunil Kumar KalidindiExecutive Director & CEO
Ms. Leona AmbujaNon Exe.Non Ind.Director
Mr. Krishna YeachurNon Exe.Non Ind.Director
Mr. Anish MathewIndependent Director
Mr. Kalyan Vijay SivalenkaIndependent Director
Mr. Suryanarayana Raju NandyalaIndependent Director

FAQ

What is Megasoft Ltd's true worth and is it a good investment?

Let's break down Megasoft Ltd's valuation simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 18 February 2025:

  • Calculated Fair Value: ₹16.95
  • Current Market Price: ₹61.40
  • Variance: 72.39% lower

This suggests Megasoft Ltd is currently overvalued by 72.39%. For context:

  • Market Cap: 453 Cr.
  • 52-Week Range: 111/50.0
  • Reserves (Sep 2024): ₹76 Cr
  • Liabilities: 374 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Megasoft Ltd?

The Market Cap of Megasoft Ltd is 453 Cr..

What is the current Stock Price of Megasoft Ltd as on 18 February 2025?

The current stock price of Megasoft Ltd as on 18 February 2025 is ₹61.4.

What is the High / Low of Megasoft Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Megasoft Ltd stocks is 111/50.0.

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 20.3.

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.

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