Melstar Information Technologies Limited

NSEI:MELSTAR Stock Report

Market Cap: ₹3.1b

Melstar Information Technologies Valuation

Is MELSTAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MELSTAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MELSTAR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MELSTAR's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MELSTAR?

Key metric: As MELSTAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MELSTAR. This is calculated by dividing MELSTAR's market cap by their current earnings.
What is MELSTAR's PE Ratio?
PE Ratio27.5x
Earnings₹112.26m
Market Cap₹3.09b

Price to Earnings Ratio vs Peers

How does MELSTAR's PE Ratio compare to its peers?

The above table shows the PE ratio for MELSTAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.4x
512379 Cressanda Railway Solutions
56.4xn/a₹3.7b
534535 Bio Green Papers
11xn/a₹2.6b
531525 Ace Software Exports
50.8xn/a₹3.0b
539607 Blue Cloud Softech Solutions
87.3xn/a₹30.1b
MELSTAR Melstar Information Technologies
27.5xn/a₹3.1b

Price-To-Earnings vs Peers: MELSTAR is good value based on its Price-To-Earnings Ratio (27.5x) compared to the peer average (51.4x).

Price to Earnings Ratio vs Industry

How does MELSTAR's PE Ratio compare vs other companies in the IN IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTL GTL
1.3xn/aUS$24.16m
517429 Athena Global Technologies
0.7xn/aUS$16.06m
509040 Netlink Solutions (India)
3.2xn/aUS$5.12m
512341 CES
0.05xn/aUS$130.33k
No more companies available in this PE range
MELSTAR 27.5xIndustry Avg. 37.6xNo. of Companies16PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MELSTAR is good value based on its Price-To-Earnings Ratio (27.5x) compared to the Indian IT industry average (38x).

Price to Earnings Ratio vs Fair Ratio

What is MELSTAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MELSTAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MELSTAR's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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