Majesco Limited - looking Forward

(Parag) #106

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.

(Divyanshu Taneja) #107

Sir could you please share the link of same news
Thanks @niravacharya and @paragbharambe

(Sanjay Prajapat) #108

The same was clarified by the management in the recent concall. The claim, as they mentioned, was “adequately” covered.

(Divyanshu Taneja) #109

(Divyanshu Taneja) #110

(Divyanshu Taneja) #112

(Parag) #113

Looks like another deal with IBM cloud on the way. This is from recent company event. Here it the full PDF.

(Vilas D'Souza) #114

(Vilas D'Souza) #115

How come MJCO is at 8.25$ while MAJESCO is 460?

(ASPN) #116

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?

(Vilas D'Souza) #117

Few months back it was the other way round.

(ASPN) #118

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.

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.

(Vilas D'Souza) #119

Thanks for sharing, will explore further in this direction. Meanwhile, check the prices on June 14 versus that of Friday.