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MEGA

MegasoftNSEI:MEGASOFT Stock Report

Market Cap

₹2.3b

7D

-0.8%

1Y

271.2%

Updated

02 Dec, 2021

Data

Company Financials
MEGASOFT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends0/6

MEGASOFT Stock Overview

Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain in the United States, Latin America, Asia, Europe, the Middle East and Africa, and the Asia-Pacific.

Price History & Performance

Summary of all time highs, changes and price drops for Megasoft
Historical stock prices
Current Share Price₹31.55
52 Week High₹35.00
52 Week Low₹8.15
Beta0.77
1 Month Change60.56%
3 Month Change77.75%
1 Year Change271.18%
3 Year Change242.94%
5 Year Change67.82%
Change since IPO-79.40%

Recent News & Updates

Shareholder Returns

MEGASOFTIN SoftwareIN Market
7D-0.8%-2.1%-1.7%
1Y271.2%101.5%41.1%

Return vs Industry: MEGASOFT exceeded the Indian Software industry which returned 101.5% over the past year.

Return vs Market: MEGASOFT exceeded the Indian Market which returned 41.1% over the past year.

Price Volatility

Is MEGASOFT's price volatile compared to industry and market?
MEGASOFT volatility
MEGASOFT Average Weekly Movement8.7%
Software Industry Average Movement6.8%
Market Average Movement6.1%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.9%

Stable Share Price: MEGASOFT is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MEGASOFT's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

FoundedEmployeesCEOWebsite
1994n/aGandaravakottai Kumarhttps://www.megasoft.com

Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain in the United States, Latin America, Asia, Europe, the Middle East and Africa, and the Asia-Pacific. It offers mobile infrastructure solutions and services, including XIUS mobile services platform (MSP), which provides end-to-end infrastructure for 3G, 4G, 5G mobile operators, MVNE/mobile virtual network operators, converged broadband 4G LTE service providers, mobile operator wholesale departments, and machine-to-machine/Internet of Things (IoT) service providers; XIUS MSP that offers a suite of infrastructure options, which enable real-time rating and billing; and MSP’s comprehensive billing module that provide mobile operators a platform to offer a range of services to their subscribers. The company also provides real time rating and charging, comprehensive customer, interconnect and wholesale billing, provisioning and mediation, integrated messaging solutions; XIUS IoT platform, a software-based platform for the new mobile world of connected devices and emerging services; and XIUS payments manager, a digital mobile payment platform, which offer channel management, banking and payment gateways, digital wallet and loyalty systems, p-2-p payments, settlements, and a regulatory compliant reporting system.

Megasoft Fundamentals Summary

How do Megasoft's earnings and revenue compare to its market cap?
MEGASOFT fundamental statistics
Market Cap₹2.26b
Earnings (TTM)₹22.65m
Revenue (TTM)₹558.61m

99.7x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEGASOFT income statement (TTM)
Revenue₹558.61m
Cost of Revenue₹189.53m
Gross Profit₹369.08m
Expenses₹346.43m
Earnings₹22.65m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin66.07%
Net Profit Margin4.05%
Debt/Equity Ratio0.0%

How did MEGASOFT perform over the long term?

See historical performance and comparison

Valuation

Is Megasoft undervalued compared to its fair value and its price relative to the market?

99.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MEGASOFT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MEGASOFT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MEGASOFT is poor value based on its PE Ratio (99.7x) compared to the Indian Software industry average (26x).

PE vs Market: MEGASOFT is poor value based on its PE Ratio (99.7x) compared to the Indian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MEGASOFT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MEGASOFT is good value based on its PB Ratio (1.3x) compared to the IN Software industry average (2.2x).


Future Growth

How is Megasoft forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Megasoft has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Megasoft performed over the past 5 years?

-27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEGASOFT has high quality earnings.

Growing Profit Margin: MEGASOFT's current net profit margins (4.1%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: MEGASOFT's earnings have declined by 27.5% per year over the past 5 years.

Accelerating Growth: MEGASOFT's earnings growth over the past year (110.8%) exceeds its 5-year average (-27.5% per year).

Earnings vs Industry: MEGASOFT earnings growth over the past year (110.8%) exceeded the Software industry 48.5%.


Return on Equity

High ROE: MEGASOFT's Return on Equity (1.3%) is considered low.


Financial Health

How is Megasoft's financial position?


Financial Position Analysis

Short Term Liabilities: MEGASOFT's short term assets (₹696.0M) do not cover its short term liabilities (₹1.2B).

Long Term Liabilities: MEGASOFT's short term assets (₹696.0M) exceed its long term liabilities (₹205.4M).


Debt to Equity History and Analysis

Debt Level: MEGASOFT is debt free.

Reducing Debt: MEGASOFT has no debt compared to 5 years ago when its debt to equity ratio was 35.7%.

Debt Coverage: MEGASOFT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MEGASOFT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Megasoft current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MEGASOFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MEGASOFT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MEGASOFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MEGASOFT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MEGASOFT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Gandaravakottai Kumar (55 yo)

no data

Tenure

₹3,898,000

Compensation

Mr. Gandaravakottai Venkataraman Kumar, B.E, MBA, has been the Managing Director at Megasoft Ltd. since April 1, 2006 and serves as its Chief Executive Officer. Mr. Kumar has been Executive Director of Meg...


CEO Compensation Analysis

Compensation vs Market: Gandaravakottai's total compensation ($USD52.09K) is above average for companies of similar size in the Indian market ($USD39.93K).

Compensation vs Earnings: Gandaravakottai's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MEGASOFT's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: MEGASOFT's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 66.6%.


Top Shareholders

Company Information

Megasoft Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Megasoft Limited
  • Ticker: MEGASOFT
  • Exchange: NSEI
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹2.257b
  • Shares outstanding: 73.77m
  • Website: https://www.megasoft.com

Location

  • Megasoft Limited
  • My Home Hub
  • 1st Floor, Block -3
  • Hyderabad
  • 500081
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 12:05
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.