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Megasoft

NSEI:MEGASOFT
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEGASOFT
NSEI
₹296M
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain primarily in the United States, Canada, South America, Latin America, the Middle East, Africa, and the Asia-Pacific. The last earnings update was 69 days ago. More info.


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  • Megasoft has significant price volatility in the past 3 months.
MEGASOFT Share Price and Events
7 Day Returns
-8.7%
NSEI:MEGASOFT
-1.6%
IN Software
-1.9%
IN Market
1 Year Returns
-49%
NSEI:MEGASOFT
-19.9%
IN Software
-2.8%
IN Market
MEGASOFT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Megasoft (MEGASOFT) -8.7% -10.6% -10% -49% -50% -8%
IN Software -1.6% 2.3% -5.9% -19.9% -4.5% 28.4%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • MEGASOFT underperformed the Software industry which returned -19.9% over the past year.
  • MEGASOFT underperformed the Market in India which returned -2.8% over the past year.
Price Volatility
MEGASOFT
Industry
5yr Volatility vs Market

MEGASOFT Value

 Is Megasoft undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Megasoft to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Megasoft.

NSEI:MEGASOFT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 23.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:MEGASOFT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.137 (1 + (1- 35%) (152.89%))
1.849
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.849 * 8.6%)
23.45%

Discounted Cash Flow Calculation for NSEI:MEGASOFT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Megasoft is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:MEGASOFT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 23.45%)
2019 86.07 Est @ 10.69% 69.72
2020 94.46 Est @ 9.75% 61.98
2021 103.04 Est @ 9.09% 54.77
2022 111.93 Est @ 8.63% 48.19
2023 121.22 Est @ 8.3% 42.28
2024 131.01 Est @ 8.08% 37.01
2025 141.38 Est @ 7.92% 32.36
2026 152.42 Est @ 7.81% 28.26
2027 164.21 Est @ 7.73% 24.66
2028 176.81 Est @ 7.68% 21.51
Present value of next 10 years cash flows ₹420.74
NSEI:MEGASOFT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹176.81 × (1 + 7.55%) ÷ (23.45% – 7.55%)
₹1,196.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,196.06 ÷ (1 + 23.45%)10
₹145.50
NSEI:MEGASOFT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹420.74 + ₹145.50
₹566.25
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹566.25 / 44.27
₹12.79
NSEI:MEGASOFT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:MEGASOFT represents 0.956x of BSE:532408
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.956x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 12.79 x 0.956
₹12.23
Value per share (INR) From above. ₹12.23
Current discount Discount to share price of ₹6.30
= -1 x (₹6.30 - ₹12.23) / ₹12.23
48.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Megasoft is available for.
Intrinsic value
48%
Share price is ₹6.3 vs Future cash flow value of ₹12.23
Current Discount Checks
For Megasoft to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Megasoft's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Megasoft's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Megasoft's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Megasoft's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MEGASOFT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹0.69
BSE:532408 Share Price ** BSE (2019-04-24) in INR ₹6.59
India Software Industry PE Ratio Median Figure of 48 Publicly-Listed Software Companies 15.63x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Megasoft.

NSEI:MEGASOFT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532408 Share Price ÷ EPS (both in INR)

= 6.59 ÷ 0.69

9.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Megasoft is good value based on earnings compared to the IN Software industry average.
  • Megasoft is good value based on earnings compared to the India market.
Price based on expected Growth
Does Megasoft's expected growth come at a high price?
Raw Data
NSEI:MEGASOFT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
33.2%per year
India Software Industry PEG Ratio Median Figure of 9 Publicly-Listed Software Companies 0.96x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Megasoft, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Megasoft's assets?
Raw Data
NSEI:MEGASOFT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹30.02
BSE:532408 Share Price * BSE (2019-04-24) in INR ₹6.59
India Software Industry PB Ratio Median Figure of 66 Publicly-Listed Software Companies 1.17x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:MEGASOFT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532408 Share Price ÷ Book Value per Share (both in INR)

= 6.59 ÷ 30.02

0.22x

* Primary Listing of Megasoft.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Megasoft is good value based on assets compared to the IN Software industry average.
X
Value checks
We assess Megasoft's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Megasoft has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEGASOFT Future Performance

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

  • No analysts cover Megasoft, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Megasoft expected to grow at an attractive rate?
  • Megasoft's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Megasoft's earnings growth is expected to exceed the India market average.
  • Unable to compare Megasoft's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:MEGASOFT Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MEGASOFT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 33.2%
India Software Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
India Software Industry Revenue Growth Rate Market Cap Weighted Average 12%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:MEGASOFT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MEGASOFT Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 589 30
2018-09-30 626 22
2018-06-30 647 19
2018-03-31 663 157 17
2017-12-31 712 -50
2017-09-30 730 -56
2017-06-30 713 27
2017-03-31 701 449 27
2016-12-31 724 136
2016-09-30 663 123
2016-06-30 660 30
2016-03-31 657 164 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Megasoft's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Megasoft is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MEGASOFT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Megasoft Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MEGASOFT Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 0.69
2018-09-30 0.44
2018-06-30 0.52
2018-03-31 0.38
2017-12-31 -1.15
2017-09-30 -1.25
2017-06-30 0.61
2017-03-31 0.61
2016-12-31 3.07
2016-09-30 2.79
2016-06-30 0.69
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Megasoft will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Megasoft's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Megasoft has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEGASOFT Past Performance

  How has Megasoft performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Megasoft's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Megasoft's year on year earnings growth rate has been positive over the past 5 years.
  • Megasoft has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Megasoft has become profitable in the last year making it difficult to compare the IN Software industry average.
Earnings and Revenue History
Megasoft's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Megasoft Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MEGASOFT Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 589.46 30.16 219.51
2018-09-30 625.84 22.40 236.15
2018-06-30 647.25 19.39 202.59
2018-03-31 662.59 16.91 238.65
2017-12-31 711.75 -49.58 253.34
2017-09-30 730.08 -55.56 253.69
2017-06-30 712.67 27.10 253.50
2017-03-31 701.42 27.19 250.12
2016-12-31 723.83 135.78 243.70
2016-09-30 663.03 123.44 243.95
2016-06-30 660.30 29.50 260.20
2016-03-31 656.83 12.98 244.90
2015-12-31 618.69 -41.62 304.93
2015-09-30 637.29 -34.12 304.93
2015-06-30 700.40 -11.30
2015-03-31 766.79 6.28 434.36
2014-09-30 942.98 9.98 288.99
2014-06-30 980.28 8.98 288.99
2014-03-31 1,027.60 20.20
2013-12-31 1,055.08 26.78 446.36
2013-09-30 1,060.38 27.57 299.09
2013-06-30 1,083.78 -6.83 312.89
2013-03-31 1,121.18 -8.43 324.39
2012-12-31 1,153.98 11.67 331.99
2012-09-30 1,217.56 36.12 399.10
2012-06-30 1,295.16 98.22 422.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Megasoft has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Megasoft used its assets less efficiently than the IN Software industry average last year based on Return on Assets.
  • Megasoft has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Megasoft's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Megasoft has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEGASOFT Health

 How is Megasoft's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Megasoft's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Megasoft's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Megasoft's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Megasoft's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Megasoft Company Filings, last reported 3 months ago.

NSEI:MEGASOFT Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,406.64 452.10 10.61
2018-09-30 1,406.64 452.10 10.61
2018-06-30 1,352.78 550.83 8.98
2018-03-31 1,352.78 470.45 6.15
2017-12-31 1,336.10 471.50 10.56
2017-09-30 1,336.10 471.50 10.56
2017-06-30 1,315.91 459.81 11.60
2017-03-31 1,316.43 459.81 5.61
2016-12-31 1,283.66 458.51 100.57
2016-09-30 1,283.66 458.51 100.57
2016-06-30 1,278.59 980.98 51.42
2016-03-31 1,278.59 981.04 51.42
2015-12-31 1,474.10 976.10 30.00
2015-09-30 1,474.10 976.10 30.00
2015-06-30 1,698.40 935.60 37.60
2015-03-31 1,698.36 936.41 37.63
2014-09-30 2,111.20 906.80 47.60
2014-06-30 2,111.20 906.80 47.60
2014-03-31 2,105.90 721.40 102.10
2013-12-31 2,105.79 920.49 102.06
2013-09-30 2,120.40 807.30 133.90
2013-06-30 2,120.40 807.30 133.90
2013-03-31 2,138.45 1,075.88 195.09
2012-12-31 2,138.45 1,075.88 195.09
2012-09-30 2,142.00 659.60 79.40
2012-06-30 2,142.00 659.60 79.40
  • Megasoft's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43.6% vs 32.1% today).
  • Debt is well covered by operating cash flow (34.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Megasoft's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Megasoft has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEGASOFT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Megasoft dividends.
If you bought ₹2,000 of Megasoft shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Megasoft's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Megasoft's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:MEGASOFT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Software Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MEGASOFT Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2010-04-01 0.000 0.000
2010-03-31 0.000 0.000
2010-03-05 0.000 0.000
2009-07-15 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Megasoft has not reported any payouts.
  • Unable to verify if Megasoft's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Megasoft's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Megasoft has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Megasoft's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Megasoft afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Megasoft has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEGASOFT Management

 What is the CEO of Megasoft's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gandaravakottai Kumar
COMPENSATION ₹3,898,000
AGE 52
CEO Bio

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 Megasoft Ltd., since September 1, 2004. He served as Compliance Officer at Megasoft Ltd. since November 17, 2015. Mr. Kumar has over fourteen years of experience in IT & Telecom industries. He was the Founder of XIUS India Limited and served as its Chief Executive Officer. He held various senior management positions at Godrej Group of India as Chief Executive Officer at Godrej Telecom Ltd. At Godrej, he played key role in setting up of new companies and joint ventures, launching new business & product lines and forging International Alliances. He is credited with the turning around of many business divisions of Godrej, including Godrej Telecom. He also been a part time Marketing Faculty for second Year MBA students of Bombay University for 5 years. Mr. Kumar is an Electrical Engineer with Post Graduate degree in Management.

CEO Compensation
  • Gandaravakottai's compensation has been consistent with company performance over the past year.
  • Gandaravakottai's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Megasoft management team in years:

6
Average Tenure
  • The average tenure for the Megasoft management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Gandaravakottai Kumar

TITLE
CEO, MD & Executive Director
COMPENSATION
₹4M
AGE
52

Shridhar Thathachary

TITLE
Chief Financial Officer
COMPENSATION
₹4M
TENURE
3.7 yrs

D. Reddy

TITLE
Executive Director
COMPENSATION
₹1M
AGE
60
TENURE
19.1 yrs

Jon Slates

TITLE
Director of Facilities & Operations

Sridhar Lanka

TITLE
Chief Technology Officer

Srivalli Manda

TITLE
Company Secretary & Compliance Officer
TENURE
0.4 yrs

Manian Sivaramakrishnan

TITLE
Head of Marketing

Derek Bowman

TITLE
Director of Business Development

S. Kumar

TITLE
Vice President and Delivery Head
COMPENSATION
₹3M

Umakanta Mansingh

TITLE
Head of Quality
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the Megasoft board of directors in years:

12
Average Tenure
53
Average Age
  • The average tenure for the Megasoft board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Gandaravakottai Kumar

TITLE
CEO, MD & Executive Director
COMPENSATION
₹4M
AGE
52
TENURE
14.6 yrs

D. Reddy

TITLE
Executive Director
COMPENSATION
₹1M
AGE
60
TENURE
19.1 yrs

Anil Sood

TITLE
Independent Non-Executive Director
COMPENSATION
₹150K
AGE
55
TENURE
12 yrs

Anish Mathew

TITLE
Independent Non-Executive Director
COMPENSATION
₹135K
AGE
53
TENURE
10.3 yrs

Leona Ambuja

TITLE
Independent Non-Executive Director
COMPENSATION
₹210K
AGE
32
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Megasoft's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Megasoft has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEGASOFT News

Simply Wall St News

Is Megasoft Limited's (NSE:MEGASOFT) CEO Being Overpaid?

How Does Gandaravakottai Kumar's Compensation Compare With Similar Sized Companies. … Our data indicates that Megasoft Limited is worth ₹316m, and total annual CEO compensation is ₹3.9m. … We examined a group of similar sized companies, with market capitalizations of below ₹14b

Simply Wall St -

Such Is Life: How Megasoft Shareholders Saw Their Shares Drop 56%

Given that Megasoft only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. … As a general rule, if the market is looking past earnings to focus on revenue, there is a hope for, or expectation of, strong growth. … As you can imagine, it's easy to imagine a fast growing company becoming (potentially very) profitable, but when revenue growth slows, then the potential upside often seems less impressive.

Simply Wall St -

Why We’re Not Keen On Megasoft Limited’s (NSE:MEGASOFT) 2.5% Return On Capital

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Megasoft Limited (NSE:MEGASOFT)

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Megasoft has a price to earnings ratio of 12.01, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What does Megasoft Limited's (NSE:MEGASOFT) Balance Sheet Tell Us About Its Future?

Megasoft Limited (NSE:MEGASOFT) is a small-cap stock with a market capitalization of ₹329.79m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

Should You Be Concerned About Megasoft Limited's (NSE:MEGASOFT) Earnings Growth?

When Megasoft Limited (NSE:MEGASOFT) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … These are useful yardsticks to help me gauge whether or not MEGASOFT actually performed well. … MEGASOFT's trailing twelve-month earnings (from 31 March 2018) of ₹16.91m has

Simply Wall St -

What You Must Know About Megasoft Limited's (NSE:MEGASOFT) 1.25% ROE

and looking to gauge the potential return on investment in Megasoft Limited (NSE:MEGASOFT). … Megasoft Limited (NSE:MEGASOFT) delivered a less impressive 1.25% ROE over the past year, compared to the 11.52% return generated by its industry. … Knowing these components can change your views on MEGASOFT's below-average returns

Simply Wall St -

What does Megasoft Limited's (NSE:MEGASOFT) Balance Sheet Tell Us About Its Future?

With this debt payback, the current cash and short-term investment levels stands at ₹11.60M for investing into the business. … Moreover, MEGASOFT has generated ₹517.17M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 112.48%, signalling that MEGASOFT’s debt is appropriately covered by operating cash. … Risk around debt is very low for MEGASOFT, and the company also has the ability and headroom to increase debt if needed going forward.Next Steps: MEGASOFT’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

Simply Wall St -

MEGASOFT Company Info

Description

Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain primarily in the United States, Canada, South America, Latin America, the Middle East, Africa, and the Asia-Pacific. The company engages in the computer programming, consultancy, and related activities. It offers mobile infrastructure solutions, including XIUS mobile services platform (MSP), which provides end-to-end infrastructure for 3G/4G 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 Megasoft that enables service providers to navigate mobile ecosystems. The company also provides mobile payment technologies and services, including platforms and applications, e-wallets, and mobile and digital currencies. In addition, it offers cloud management, data center installation and management, predictive analytics, and managed and information management services, as well as cloud, cyber security, IoT, and mobile enablement services of various other service-related enterprises. Megasoft Limited was founded in 1994 and is based in Hyderabad, India.

Details
Name: Megasoft Limited
MEGASOFT
Exchange: NSEI
Founded: 1994
₹295,705,517
44,267,293
Website: http://www.megasoft.com
Address: Megasoft Limited
Block A Wing 1,
Level 5&6,
Hyderabad,
Andhra Pradesh, 500081,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532408 Equity Shares Mumbai Stock Exchange IN INR 25. Oct 2004
NSEI MEGASOFT Equity Shares National Stock Exchange of India IN INR 25. Oct 2004
Number of employees
Current staff
Staff numbers
0
Megasoft employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:48
End of day share price update: 2019/04/24 00:00
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.