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Melstar Information Technologies

NSEI:MELSTAR
Snowflake Description

Worrying balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MELSTAR
NSEI
₹22M
Market Cap
  1. Home
  2. IN
  3. Software
Company description

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. The last earnings update was 65 days ago. More info.


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  • Melstar Information Technologies has significant price volatility in the past 3 months.
MELSTAR Share Price and Events
7 Day Returns
-4.5%
NSEI:MELSTAR
1.5%
IN IT
1.7%
IN Market
1 Year Returns
-70.8%
NSEI:MELSTAR
26.1%
IN IT
0.1%
IN Market
MELSTAR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Melstar Information Technologies (MELSTAR) -4.5% -16% -30% -70.8% -83.2% -64.4%
IN IT 1.5% 5.1% 9.1% 26.1% 45.3% 79.4%
IN Market 1.7% 2.7% 5.8% 0.1% 41.6% 73.3%
1 Year Return vs Industry and Market
  • MELSTAR underperformed the IT industry which returned 26.1% over the past year.
  • MELSTAR underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
MELSTAR
Industry
5yr Volatility vs Market

Value

 Is Melstar Information Technologies 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 Melstar Information Technologies 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 Melstar Information Technologies.

NSEI:MELSTAR 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 24.8%
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:MELSTAR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 35%) (503.79%))
3.365
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (2 * 8.6%)
24.75%

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

The calculations below outline how an intrinsic value for Melstar Information Technologies 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:MELSTAR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 24.75%)
2019 0.15 Est @ 8.88% 0.12
2020 0.16 Est @ 8.48% 0.10
2021 0.17 Est @ 8.2% 0.09
2022 0.19 Est @ 8.01% 0.08
2023 0.20 Est @ 7.87% 0.07
2024 0.22 Est @ 7.77% 0.06
2025 0.23 Est @ 7.71% 0.05
2026 0.25 Est @ 7.66% 0.04
2027 0.27 Est @ 7.63% 0.04
2028 0.29 Est @ 7.6% 0.03
Present value of next 10 years cash flows ₹0.67
NSEI:MELSTAR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹0.29 × (1 + 7.55%) ÷ (24.75% – 7.55%)
₹1.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1.83 ÷ (1 + 24.75%)10
₹0.20
NSEI:MELSTAR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹0.67 + ₹0.20
₹0.88
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹0.88 / 14.28
₹0.06
NSEI:MELSTAR Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:MELSTAR represents 0.68182x of BSE:532307
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.68182x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 0.06 x 0.68182
₹0.04
Value per share (INR) From above. ₹0.04
Current discount Discount to share price of ₹1.05
= -1 x (₹1.05 - ₹0.04) / ₹0.04
-2413.2%

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

  • The current share price of Melstar Information Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Melstar Information Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Melstar Information Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MELSTAR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹-2.24
BSE:532307 Share Price ** BSE (2019-04-12) in INR ₹1.54
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.18x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

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

** Primary Listing of Melstar Information Technologies.

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

= BSE:532307 Share Price ÷ EPS (both in INR)

= 1.54 ÷ -2.24

-0.69x

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

  • Melstar Information Technologies is loss making, we can't compare its value to the IN IT industry average.
  • Melstar Information Technologies is loss making, we can't compare the value of its earnings to the India market.
Price based on expected Growth
Does Melstar Information Technologies's expected growth come at a high price?
Raw Data
NSEI:MELSTAR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.3x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.33x

*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 Melstar Information Technologies, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Melstar Information Technologies's assets?
Raw Data
NSEI:MELSTAR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹-0.28
BSE:532307 Share Price * BSE (2019-04-12) in INR ₹1.54
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.4x
India Market PB Ratio Median Figure of 3,626 Publicly-Listed Companies 1.12x
NSEI:MELSTAR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532307 Share Price ÷ Book Value per Share (both in INR)

= 1.54 ÷ -0.28

-5.41x

* Primary Listing of Melstar Information Technologies.

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

  • Melstar Information Technologies has negative assets, we can't compare the value of its assets to the IN IT industry average.
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Value checks
We assess Melstar Information Technologies'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 IT 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 IT industry average (and greater than 0)? (1 check)
  5. Melstar Information Technologies has a total score of 0/6, 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.

Future Performance

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

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
9.5%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Melstar Information Technologies expected to grow at an attractive rate?
  • Unable to compare Melstar Information Technologies's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Melstar Information Technologies's earnings growth to the India market average as no estimate data is available.
  • Unable to compare Melstar Information Technologies's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:MELSTAR Future Growth Rates Data Sources
Data Point Source Value (per year)
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.5%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*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:MELSTAR 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:MELSTAR Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 33 -32
2018-09-30 33 -9
2018-06-30 33 -17
2018-03-31 33 -4 -27
2017-12-31 51 -31
2017-09-30 93 -59
2017-06-30 151 -48
2017-03-31 210 13 -39
2016-03-31 315 16 -4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Melstar Information Technologies is high growth as no earnings estimate data is available.
  • Unable to determine if Melstar Information Technologies 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:MELSTAR 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 Melstar Information Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MELSTAR Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 -2.24
2018-09-30 -0.66
2018-06-30 -1.20
2018-03-31 -1.90
2017-12-31
2017-09-30 -4.16
2017-06-30 -3.36
2017-03-31 -2.72
2016-03-31 -0.26

*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 Melstar Information Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. 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.
  2. Melstar Information Technologies's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. Melstar Information Technologies's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
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Future performance checks
We assess Melstar Information Technologies'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.
Melstar Information Technologies has a total score of 0/6, 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.

Past Performance

  How has Melstar Information Technologies 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 Melstar Information Technologies's growth in the last year to its industry (IT).
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.
  • Melstar Information Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Melstar Information Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Melstar Information Technologies's 1-year growth to the IN IT industry average as it is not currently profitable.
Earnings and Revenue History
Melstar Information Technologies'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 Melstar Information Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MELSTAR 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 33.36 -32.21 6.63
2018-09-30 33.40 -9.46 6.63
2018-06-30 33.37 -17.09 6.63
2018-03-31 33.50 -27.18 6.63
2017-12-31 50.57 -30.95 3.72
2017-09-30 92.51 -59.46 3.72
2017-06-30 151.41 -47.96 3.72
2017-03-31 210.17 -38.86 3.72
2016-03-31 315.27 -3.78 2.73
2015-03-31 223.58 -16.62 2.24
2014-03-31 185.96 -24.30 21.41
2013-03-31 210.48 -13.10 19.06

*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.
  • It is difficult to establish if Melstar Information Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Melstar Information Technologies has efficiently used its assets last year compared to the IN IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Melstar Information Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Melstar Information Technologies'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 IT 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.
Melstar Information Technologies has a total score of 0/6, 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.

Health

 How is Melstar Information Technologies'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 Melstar Information Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Melstar Information Technologies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Melstar Information Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Melstar Information Technologies'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.
  • Melstar Information Technologies has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 Melstar Information Technologies Company Filings, last reported 3 months ago.

NSEI:MELSTAR Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -4.07 110.81 2.08
2018-09-30 -4.07 110.81 2.08
2018-06-30 12.65 116.51 1.83
2018-03-31 12.65 116.51 1.83
2017-12-31 5.88 0.04 10.37
2017-09-30 5.88 0.04 10.37
2017-06-30 40.31 101.28 1.34
2017-03-31 40.31 101.28 1.34
2016-03-31 73.77 111.44 0.87
2015-03-31 77.85 87.88 1.20
2014-03-31 97.29 79.46 0.86
2013-03-31 122.40 52.70 2.36
  • Melstar Information Technologies has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Melstar Information Technologies's debt level has increased considering it has negative shareholder equity.
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.

  • Melstar Information Technologies has less than a year of cash runway based on current free cash flow.
  • Melstar Information Technologies has less than a year of cash runway if free cash flow continues to grow at historical rates of 31.1% each year.
X
Financial health checks
We assess Melstar Information Technologies'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. Melstar Information Technologies has a total score of 1/6, 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.

Dividends

 What is Melstar Information Technologies'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 Melstar Information Technologies dividends.
If you bought ₹2,000 of Melstar Information Technologies 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 Melstar Information Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Melstar Information Technologies'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:MELSTAR 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 IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
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 1.9%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as Melstar Information Technologies has not reported any payouts.
  • Unable to verify if Melstar Information Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Melstar Information Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Melstar Information Technologies 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 Melstar Information Technologies'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 Melstar Information Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Melstar Information Technologies 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.

Management

 What is the CEO of Melstar Information Technologies'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
Ashish Mahendrakar
COMPENSATION ₹1,496,000
AGE 47
TENURE AS CEO 1.4 years
CEO Bio

Mr. Ashish Ramesh Mahendrakar, B.Com, D.B.M., M.M.S., has been Chief Executive Officer of Melstar Information Technologies Limited since November 13, 2017 and its Whole Time Director since May 29, 2017. Mr. Mahendrakar serves as Director at Melstar Information Technologies Limited since 2019. Mr. Mahendrakar has been Managing Director of Birla Shloka Edutech Ltd since August 7, 2014. Mr. Mahendrakar has been Chief Financial Officer of Melstar Information Technologies Limited since May 29, 2017. He has been an Executive Director of Birla Shloka Edutech Ltd since June 24, 2014. He has 23 years of experience in the field of accounts, Banking and Finance. He serves as Chairman at Melstar Information Technologies Limited. He has been an Additional Director of Birla Capital & Financial Services Limited since July 20, 2015. He has been an Additional Director of Birla Power Solutions Limited since August 28, 2014. He had been a Non Executive & Non-Independent Director at Zenith Birla (India) Ltd. since March 13, 2016 Until September 14, 2017. He served as an Executive Director of Melstar Information Technologies Limited from March 27, 2017 to May 29, 2017. He served as an Independent Non Executive Director of Melstar Information Technologies Limited since July 1, 2015 until March 27, 2017. He served as an Additional Non Executive & Non-Independent Director of Zenith Birla (India) Ltd from August 14, 2014 to August 12, 2015. He studied Master in Management studies and Diploma in Business Management.

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

Ashish Mahendrakar

TITLE
CEO, CFO & DIrector
COMPENSATION
₹1M
AGE
47
TENURE
1.4 yrs

Ashok Waykul

TITLE
Chief Operating Officer

Yash Birla

TITLE
Head of Strategic Business
COMPENSATION
₹10K
AGE
51

Vineet Tripathi

TITLE
Independent Non Executive Director
Board of Directors Tenure

Average tenure of the Melstar Information Technologies board of directors in years:

1.4
Average Tenure
  • The average tenure for the Melstar Information Technologies board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ashish Mahendrakar

TITLE
CEO, CFO & DIrector
COMPENSATION
₹1M
AGE
47
TENURE
1.9 yrs

Vineet Tripathi

TITLE
Independent Non Executive Director

Bhalchandra Shinde

TITLE
Non Executive Independent Director
COMPENSATION
₹10K
AGE
52
TENURE
1.4 yrs

Anant Pathak

TITLE
Non-Executive Independent Additional Director
TENURE
0.2 yrs

Kirti Tripathi

TITLE
Independent Non Executive Director

Sirish Sahoo

TITLE
Non Independent & Non Executive Director
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 Melstar Information Technologies'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. Melstar Information Technologies 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.

News

Simply Wall St News

Easy Come, Easy Go: How Melstar Information Technologies (NSE:MELSTAR) Shareholders Got Unlucky And Saw 83% Of Their Cash Evaporate

So spare a thought for the long term shareholders of Melstar Information Technologies Limited (NSE:MELSTAR); the share price is down a whopping 83% in the last three years. … Investors will be hoping that Melstar Information Technologies can make progress and gain better traction for the business, before it runs low on cash. … But since the share price has dived -45% per year, over 3 years, it looks like some investors think it's time to abandon ship, so to speak.

Simply Wall St -

What Kind Of Shareholders Own Melstar Information Technologies Limited (NSE:MELSTAR)?

Every investor in Melstar Information Technologies Limited (NSE:MELSTAR) should be aware of the most powerful shareholder groups. … Melstar Information Technologies is not a large company by global standards. … See our latest analysis for Melstar Information Technologies

Simply Wall St -

Do Directors Own Melstar Information Technologies Limited (NSE:MELSTAR) Shares?

Every investor in Melstar Information Technologies Limited (NSE:MELSTAR) should be aware of the most powerful shareholder groups. … Melstar Information Technologies is a smaller company with a market capitalization of ₹22m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Melstar Information Technologies

Simply Wall St -

Is Melstar Information Technologies Limited's (NSE:MELSTAR) Balance Sheet Strong Enough To Weather A Storm?

Investors are always looking for growth in small-cap stocks like Melstar Information Technologies Limited (NSE:MELSTAR), with a market cap of ₹25.71m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Melstar Information Technologies Limited (NSE:MELSTAR): Did It Outperform The Industry?

Examining Melstar Information Technologies Limited's (NSEI:MELSTAR) past track record of performance is a valuable exercise for investors. … NSEI:MELSTAR Income Statement Jun 4th 18 We can further analyze Melstar Information Technologies's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past five years Melstar Information Technologies has seen an annual decline in revenue of -22.07%, on average.

Simply Wall St -

Why Melstar Information Technologies Limited's (NSE:MELSTAR) CEO Pay Matters To You

Ashish Mahendrakar took the reins as CEO of Melstar Information Technologies Limited's (NSEI:MELSTAR) and grew market cap to ₹41.99M recently. … See our latest analysis for Melstar Information Technologies What has been the trend in MELSTAR's earnings? … Typically I would use earnings and market cap to account for variations in performance, however, MELSTAR's negative earnings reduces the effectiveness of this method.

Simply Wall St -

Should You Be Concerned About Melstar Information Technologies Limited's (NSE:MELSTAR) Shareholders?

Today, I will be analyzing Melstar Information Technologies Limited’s (NSEI:MELSTAR) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for Melstar Information Technologies NSEI:MELSTAR Ownership_summary May 18th 18 Institutional Ownership Due to the big order sizes of institutional investors, a company's shares can experience large, one-sided momentum, driven by high volume of shares removed from, or injected into, the market. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership level and composition in MELSTAR is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

What You Must Know About Melstar Information Technologies Limited's (NSE:MELSTAR) Market Risks

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Melstar Information Technologies's beta of 0.27 indicates that the stock value will be less variable compared to the whole stock market. … With a market cap of ₹46.42M, MELSTAR falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies.

Simply Wall St -

Should Melstar Information Technologies Limited's (NSE:MELSTAR) Recent Earnings Worry You?

Measuring Melstar Information Technologies Limited's (NSEI:MELSTAR) track record of past performance is a valuable exercise for investors. … Check out our latest analysis for Melstar Information Technologies How Did MELSTAR's Recent Performance Stack Up Against Its Past? … NSEI:MELSTAR Income Statement Mar 1st 18 We can further analyze Melstar Information Technologies's loss by looking at what the industry has been experiencing over the past few years.

Simply Wall St -

What Does Melstar Information Technologies Limited's (NSE:MELSTAR) Ownership Structure Look Like?

Today, I will be analyzing Melstar Information Technologies Limited’s (NSEI:MELSTAR) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for Melstar Information Technologies NSEI:MELSTAR Ownership_summary Jan 29th 18 Insider Ownership Another important group of shareholders are company insiders. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses.

Simply Wall St -

Company Info

Description

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.

Details
Name: Melstar Information Technologies Limited
MELSTAR
Exchange: NSEI
Founded: 1986
₹21,996,034
14,283,139
Website: http://www.melstar.com
Address: Melstar Information Technologies Limited
159, Industry House,
5th Floor,
Mumbai,
Maharashtra, 400020,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532307 Equity Shares Mumbai Stock Exchange IN INR 25. Jan 2001
NSEI MELSTAR Equity Shares National Stock Exchange of India IN INR 25. Jan 2001
Number of employees
Current staff
Staff numbers
113
Melstar Information Technologies employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:50
End of day share price update: 2019/04/12 00:00
Last earnings filing: 2019/02/12
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.