Majesco has already take enough provision for this. They have taken away all customer receivables and have delivered version of the software to meet customer demands.
They are hoping that the new version will fulfill the performance requirement of the client. If the client is satisfied, then there won’t be any further proceeding (hopefully). In addition, they have insurance in place for this lawsuit (not sure how much it cover).
Dis- Invested, so view could be biased.
The same was clarified by the management in the recent concall. The claim, as they mentioned, was “adequately” covered.
Looks like another deal with IBM cloud on the way. This is from recent company event. Here it the full PDF.
How come MJCO is at 8.25$ while MAJESCO is 460?
Share price is a function of number of outstanding shares, face value, valuation multiple etc. Further, Majesco India - being a holding company for MJCO - is likely to trade lower with perceived holding company discount.
Why do you think it will be simply INR equivalent of its USD share price?
Few months back it was the other way round.
No it cannot be the other way round either. Pls understand that there cannot be a direct comparison between share price of “MAJESCO INC US” and “MAJESCO LTD INDIA”.
Tomorrow, if MAJESCO INC US decides to issue bonus shares of 1:1 or split its shares, the share value will fall from $8.25 to $4.12 (in proportion to bonus shares issued). Will you compare the prices then? Hope the issue is clear now.
P.S.
MAJESCO INC US has approx 36.6 mn shares outstanding with Market Cap of approx USD 300 million (roughly INR 2200 Crores).
Whereas, MAJESCO LTD INDIA has approx 28.12 shares outstanding with Mkt Cap of roughly INR 1300 Crores.
So the holding company of MJCO US is valued in India at 1300 Cr only. This is what I meant by holding company discount.
Thanks for sharing, will explore further in this direction. Meanwhile, check the prices on June 14 versus that of Friday.
I am a new investor so pardon my mistakes but i want to get some insight and views by other forum members to comment on below points and what in they foresee for majesco
majesco management guided revenue of 225 million dollars by end of 31 march 2019 BUT they are way behind it ,( 2)secondly they raised money to acquire new company -no progress there(.3) new clients addition speed has slowed down
Any views @paragbharambe
Majesco has given up on achieving a revenue target of $225 million. They are not publicly stating any revenue target for Majesco.
Wrt acquisitions, they have not yet spent the money, and I am sure they are evaluating options, but nothing has materialised yet. Majesco has not said much about an acquisition. Based on my understanding of management comments over the last few quarters, I think they would go for acquisition that will add to their profitability rather than drain it in short to medium term.
Also, Majesco’s US-listed company is howering $8 dollar, so I won’t be surprised if they go acquisition with US company’s stock. However, this is my opinion and could be wrong.
Has anyone reviewed the concall details of usa majesco, any major points
Few points from Majesco US Con Call
Few More thoughts
Unidentified Analyst
So my first question is for Adam. I think as recovering the stock for couple of years, I think if we take a look at the last few quarters, we’ve started to finally see the ramp that management was expecting in revenues. And with that said and the change happening now, what are your top priorities or goals that you think are necessary to target to the Company during next level?
Adam Elster
With this outlook of the business, I’m very encouraged by the pipeline and the activity with the customers. As you look to moving the business from a legacy business models and on-perm as technology to a cloud base, there’s obviously a different ramp and how that business operate, right, where you’re moving from large upfront deals to cloud base deals that are smaller in nature, smaller in term and then have a ramp over time.
This is a cutting from usa con call please some one explain me the in depth knowledge for “As you look to moveing…ramp over time” why the deals are small in nature and also of smaller duration. Please some one explain
On-premise deals consist of an upfront license fee. For example, $1 million licenses fee plus implementation fee and then the company receives regular maintenance fees.
Clouds deals are structured very differently to the on-premise deals. The company does not receive an upfront license fee. The company initially gets only implementation fees. Initial years the cloud revenue is generally less as the company starts building up and migrating on clouds. However, as more and more business moves into clouds, the subscription parts get bigger and bigger. In a way, the clouds subscription revenue replaces the licenses revenue in on-premise deals. Hence Adam is referring that clouds revenue builds up slowly (no upfront licenses).
Guidewire indicated that over the three years, the clouds subscription brings 3 to 4 times the on-premise deals over the lifetime of the contracts as cloud provider not only provides software but takes care of infrastructure and testing part for the product. However, when I asked the same question to Majesco in last few con call, Majesco indicated this number to be around twice the on-premise deals. Essentially, this means that the cloud revenue brings in double the revenue than the on-premise revenue.
