NSEI:MELSTAR

Stock Analysis Report

Melstar Information Technologies

Executive Summary

Melstar Information Technologies Limited, a software services company, provides various information technology (IT) solutions primarily to banking, insurance, government, education, healthcare, and IT sectors in India and internationally.

Rewards

Earnings have grown 18.3% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap (₹72M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have meaningful revenue (₹94M)



Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Tata Consultancy Services

NSEI:TCS

Share Price & News

How has Melstar Information Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MELSTAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

MELSTAR

1.3%

IN IT

-0.6%

IN Market


1 Year Return

433.3%

MELSTAR

9.5%

IN IT

11.1%

IN Market

Return vs Industry: MELSTAR exceeded the Indian IT industry which returned 9.5% over the past year.

Return vs Market: MELSTAR exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

MELSTARIndustryMarket
7 Day-5.0%1.3%-0.6%
30 Day60.0%2.4%-0.5%
90 Day540.0%6.4%3.0%
1 Year433.3%433.3%12.4%9.5%13.1%11.1%
3 Year15.7%15.7%75.5%65.2%24.5%18.0%
5 Year-28.9%-28.9%57.1%42.6%37.8%25.7%

Price Volatility Vs. Market

How volatile is Melstar Information Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Melstar Information Technologies undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Melstar Information Technologies is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Melstar Information Technologies has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MELSTAR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Melstar Information Technologies regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

9.3%

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 Melstar Information Technologies 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.


Next Steps

Past Performance

How has Melstar Information Technologies performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MELSTAR is currently unprofitable.

Growing Profit Margin: MELSTAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MELSTAR is unprofitable, but has reduced losses over the past 5 years at a rate of 18.3% per year.

Accelerating Growth: Unable to compare MELSTAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MELSTAR is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: MELSTAR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Melstar Information Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: MELSTAR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MELSTAR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MELSTAR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MELSTAR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: MELSTAR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MELSTAR has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if MELSTAR has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MELSTAR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Melstar Information Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if MELSTAR'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 MELSTAR'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?

0.5yrs

Average board tenure


CEO

Anant Pathak (35yo)

0.5yrs

Tenure

₹15,000

Compensation

Mr. Anant Satish Pathak has been Managing Director & Additional Executive Director of Melstar Information Technologies Limited since August 13, 2019 and served as its Non-Executive Independent Director of  ...


Board Members

NamePositionTenureCompensationOwnership
Anant Pathak
MD & Additional Executive Director0.5yrs₹15.00kno data
Sirish Sahoo
Non Independent & Non Executive Director0.8yrsno datano data
Shireen Mohd Khan
Independent Non-Executive Director0.08yrsno datano data
Pramod Bhosale
Independent Non-Executive Director0.08yrsno datano data

0.5yrs

Average Tenure

Experienced Board: MELSTAR's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Melstar Information Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melstar Information Technologies Limited
  • Ticker: MELSTAR
  • Exchange: NSEI
  • Founded: 1986
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹72.273m
  • Shares outstanding: 14.28m
  • Website: https://www.melstar.com

Number of Employees


Location

  • Melstar Information Technologies Limited
  • 159, Industry House
  • 5th Floor
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532307BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2001
MELSTARNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2001

Biography

Melstar Information Technologies Limited, a software services company, provides various information technology (IT) solutions primarily to banking, insurance, government, education, healthcare, and IT sectors in India and internationally. It offers application development services; application management, maintenance, and support services; packaged application services, including consulting, implementation, application maintenance and support, upgrades, and testing in the areas of enterprise resource planning; testing and applications modernization services; and other technology services. In addition, the company provides man power supply services. Melstar Information Technologies Limited was incorporated in 1986 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:05
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.