Megasoft

₹72.7 3.5 | 5%

WEBSITE BSE:532408 NSE : MEGASOFT LTD 18 May, 12:50

Market Cap ₹536 Cr.

Stock P/E -42.0

P/B 3.5

Current Price ₹72.7

Book Value ₹ 20.7

Face Value 10

52W High ₹107.2

Dividend Yield 0%

52W Low ₹ 28.6

Edit Ratio

Megasoft Research see more...

Overview Inc. Year: 1999Industry: IT - Software

Megasoft Ltd is an totally India-based enterprise, which is engaged within the business of supplying IT services to customers. The Company operates thru telecom section. The Company's geographical segment includes USA & Canada, South America & Latam, Middle East & Africa, and APAC. The Company's merchandise/services are computer programming, consultancy and associated activities. The Company's analytics services awareness on system records analytics, agency records analytics, telecom analytics, public service analytics and predictive policing. Its cloud offerings are targeted on advisory and consultancy offerings to firms, evaluation and advice on cloud vendors, improvement of openstack cloud technologies, and cloud deployment, migration and managed offerings. Its cyber security makes a speciality of Data Security, Cloud Security, Ethical Hacking, Mobile Security, Network Security, Application Security, Security Audit, and Awareness and Training Services.

Megasoft Share Price

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Peer Comparison

Megasoft Quarterly Results

#(Fig in Cr.)	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Net Sales	13	14	2	0	0	0	0	0	0	0
Other Income	4	14	8	11	11	11	11	11	8	8
Total Income	17	28	10	11	11	11	11	11	8	8
Total Expenditure	15	27	7	6	3	3	3	2	2	1
Operating Profit	3	1	3	5	8	8	9	8	5	6
Interest	0	1	1	2	3	4	4	4	4	5
Depreciation	1	1	1	1	1	1	1	1	1	1
Exceptional Income / Expenses	0	3	1	0	0	0	0	0	0	0
Profit Before Tax	1	2	2	2	4	3	4	3	0	0
Provision for Tax	0	1	0	0	0	0	1	0	0	0
Profit After Tax	1	1	2	2	4	3	3	3	0	0
Adjustments	-0	0	0	-0	-2	-1	0	-7	-5	-9
Profit After Adjustments	1	1	2	2	2	3	3	-3	-5	-8
Adjusted Earnings Per Share	0.2	0.2	0.3	0.3	0.3	0.3	0.5	-0.4	-0.7	-1.1

Megasoft Profit & Loss

#(Fig in Cr.)	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Net Sales	115	106	101	66	70	66	62	57	59	52	2	0
Other Income	3	3	12	1	8	1	9	7	7	27	42	38
Total Income	118	109	113	66	78	67	71	63	66	79	44	38
Total Expenditure	94	83	87	50	65	57	60	51	55	71	20	8
Operating Profit	25	26	26	16	13	11	11	12	11	8	24	28
Interest	11	11	12	8	6	5	6	7	5	3	11	17
Depreciation	12	12	14	7	5	4	4	4	4	4	3	4
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	3	1	0
Profit Before Tax	2	3	0	2	2	1	1	1	2	5	11	7
Provision for Tax	0	0	-0	0	-1	-1	0	-0	-0	1	0	1
Profit After Tax	1	3	1	1	3	2	0	1	2	5	11	6
Adjustments	0	0	0	0	0	0	0	0	0	0	-3	-21
Profit After Adjustments	1	3	1	1	3	2	0	1	2	5	9	-13
Adjusted Earnings Per Share	0.3	0.6	0.2	0.3	0.6	0.4	0.1	0.2	0.4	0.6	1.2	-1.7

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	-96%	-67%	-50%	-33%
Operating Profit CAGR	200%	26%	17%	-0%
PAT CAGR	120%	122%	41%	27%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	117%	84%	65%	26%
ROE Average	7%	4%	3%	2%
ROCE Average	9%	6%	6%	5%

Megasoft Balance Sheet

#(Fig in Cr.)	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Shareholder's Funds	214	211	170	128	132	135	137	140	142	185	193
Minority's Interest	0	0	0	0	0	0	0	0	0	0	0
Borrowings	0	0	0	0	0	0	0	0	0	24	138
Other Non-Current Liabilities	2	2	1	2	10	9	12	15	20	24	22
Total Current Liabilities	144	139	141	152	131	151	172	175	155	54	23
Total Liabilities	360	351	312	282	273	296	321	331	317	286	377
Fixed Assets	209	205	193	194	187	141	208	243	248	204	179
Other Non-Current Assets	12	12	12	0	1	59	32	1	1	1	139
Total Current Assets	139	134	108	88	85	96	81	87	67	81	59
Total Assets	360	351	312	282	273	296	321	331	317	286	377

Megasoft Cash Flow

#(Fig in Cr.)	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Opening Cash & Cash Equivalents	8	20	10	4	5	1	1	3	6	7	35
Cash Flow from Operating Activities	-1	28	-15	16	45	16	51	17	20	16	13
Cash Flow from Investing Activities	-6	-7	-1	-12	9	-12	-38	-6	-3	-10	-131
Cash Flow from Financing Activities	18	-30	9	-3	-58	-4	-11	-8	-16	22	85
Net Cash Inflow / Outflow	11	-9	-6	1	-4	0	2	3	1	28	-33
Closing Cash & Cash Equivalent	20	10	4	5	1	1	3	6	7	35	2

Megasoft Ratios

#	Dec 2012	Dec 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Earnings Per Share (Rs)	0.26	0.6	0.17	0.29	0.61	0.38	0.08	0.16	0.42	0.63	1.2
CEPS(Rs)	3.05	3.29	3.23	1.81	1.77	1.36	0.92	1.15	1.24	1.12	1.93
DPS(Rs)	0	0	0	0	0	0	0	0	0	0	0
Book NAV/Share(Rs)	48.31	47.57	38.37	28.88	29.74	30.56	24.76	25.44	25.73	21.25	22.45
Core EBITDA Margin(%)	18.62	21.36	13.29	23.65	7.28	14.5	3.19	9.47	6.9	-34.96	-898.1
EBIT Margin(%)	10.58	13.37	12.18	14.68	11.61	9.49	11.08	13.22	12.35	15.63	1129.84
Pre Tax Margin(%)	1.41	2.76	0.24	2.7	3.14	1.64	1.14	1.18	3.11	10	577.01
PAT Margin (%)	1.01	2.54	0.73	1.98	3.88	2.55	0.54	1.25	3.11	8.82	577.01
Cash Profit Margin (%)	11.7	13.79	14.18	12.18	11.17	9.06	6.61	8.96	9.22	15.72	721.13
ROA(%)	0.34	0.75	0.22	0.44	0.98	0.59	0.11	0.22	0.57	1.53	3.43
ROE(%)	0.55	1.26	0.39	0.87	2.1	1.27	0.27	0.64	1.63	3.41	7.06
ROCE(%)	3.84	4.52	4.34	3.94	4.03	3.49	4.12	4.95	4.94	5	9.01
Receivable days	183.64	226.6	278.85	424.54	333.5	379.49	392.54	378.96	277.97	187.56	0
Inventory Days	0	0	0	0	0	0	0	0	0	0	0
Payable days	3012.24	957.43	714.67	2668.2	653.53	471.46	348.01	297.32	202.92	301.79	0
PER(x)	32.67	11.16	29.86	21.9	33.7	30.49	91	31.49	23.02	81.98	18.38
Price/Book(x)	0.18	0.14	0.13	0.22	0.7	0.38	0.28	0.2	0.37	2.42	0.98
Dividend Yield(%)	0	0	0	0	0	0	0	0	0	0	0
EV/Net Sales(x)	1.09	1.06	1.11	1.85	1.95	1.47	1.1	0.99	1.11	7.02	152.02
EV/Core EBITDA(x)	5.14	4.3	4.34	7.43	10.29	9.22	6.43	4.74	5.99	43.86	12.4
Net Sales Growth(%)	-23.26	-8.57	-4.53	-34.79	6.79	-5.54	-6.62	-8.31	4.71	-11.79	-96.24
EBIT Growth(%)	-56.22	15.57	-13.04	-21.4	-15.59	-22.76	9	9.4	-2.17	11.61	172.01
PAT Growth(%)	-93.33	129.49	-72.43	75.85	109.44	-37.79	-80.24	111.58	161.36	150.06	146.1
EPS Growth(%)	-93.33	129.49	-72.42	75.78	109.48	-37.79	-80.24	111.58	161.36	50.04	91.65
Debt/Equity(x)	0.5	0.44	0.55	0.77	0.35	0.35	0.37	0.36	0.27	0.17	0.88
Current Ratio(x)	0.96	0.97	0.76	0.58	0.65	0.63	0.47	0.49	0.44	1.5	2.54
Quick Ratio(x)	0.96	0.97	0.76	0.58	0.65	0.63	0.47	0.49	0.44	1.5	2.54
Interest Cover(x)	1.15	1.26	1.02	1.23	1.37	1.21	1.11	1.1	1.34	2.78	2.04
Total Debt/Mcap(x)	2.82	3.08	4.25	3.45	0.5	0.91	1.34	1.8	0.72	0.07	0.9

Megasoft Shareholding Pattern

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	42.55	43.77	43.77	43.77	43.77	43.77	43.77	43.77	43.77	43.54
FII	0	0	0	0	0	0	0	0	0	0.05
DII	0.04	0	0	0	0	0	0	0	0.12	0
Public	57.41	56.23	56.23	56.23	56.23	56.23	56.23	56.23	56.11	56.41
Others	0	0	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100	100	100

#	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	3.14	3.23	3.23	3.23	3.23	3.23	3.23	3.23	3.23	3.21
FII	0	0	0	0	0	0	0	0	0	0
DII	0	0	0	0	0	0	0	0	0.01	0
Public	4.24	4.15	4.15	4.15	4.15	4.15	4.15	4.15	4.14	4.16
Others	0	0	0	0	0	0	0	0	0	0
Total	7.38	7.38	7.38	7.38	7.38	7.38	7.38	7.38	7.38	7.38

Pros

Company has delivered good profit growth of 40% CAGR over last 5 years
Debtor days have improved from 301.79 to 0days.

Cons

Though the company is reporting repeated profits, it is not paying out dividend.
Promoter holding is low: 43.54%.
Company has a low return on equity of 4% over the last 3 years.
Stock is trading at 3.5 times its book value.
Earnings include an other income of Rs. 42 Cr.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.