Majesco will be listed on the NYSE MKT and start trading on June 29, 2015 under the ticker “MJCO”.
http://www.cover-all.com/press-news/cover-all-technologies-and-majesco-close-their-merger/
NSE Bulk Deal
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MJCO listed in NYSE MKT. Closed the day at $4.92 with volume of 4961.
Think the mcap is $180m
Majesco US is so thinly traded. a few thousand shares create a wave. currently at 5.15, will take a month to settle. Does any one know of a precedence of indian company holding US listed entity. Not sure wat kind of holding discount will apply. surely not the kind market attributes to indian holding crooks .
Disc: loaded on mastek.
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Majesco Presentation released on 20/Jul/2015
Wants to double revenues from current $106 m in the next 3 years
Disc : have posn1001200290.pdf (2.6 MB)
That might be the old price of Mastek. Click on the link for Stock Performance.
Hi Manish, i called Majesco compliance team a while back to check on timelines for listing Majesco on NSE/BSE.
He updated as follows - SEBI approval is awaited which is expected to come by 15 August 2015 and you can reasonably expect it to trade on exchange from 17 August 2015.
There is an interesting analysis on one of the blog about Mastek, it shows how various broker reports have made mistake in valuation after demerger…worth pondering…it can give good guide to take opportunity from listing of Majesco in India…
Majesco listed in BSE / NSE today. BSE CMP of Majesco is 325.50 Rs (with 1.5L shares pending for buying and no sellers). CMP of Mastek is 216 Rs. So in totality they are worth around Rs 540.
Disc: Hold both.
hey guys, i havent received my Majesco shares, i use ICICIdirect, when i checked i couldn’t see them in my portfolio, any idea how i can get them
thanks
In the Demat Allocation section there is an link called Allocate. Did you use that link ?
Have sold all my mastek shares and most of majesco shares to make remaining majesco shares foc. Will hold on to the foc shares for some time.
IndiaNiveshSecuritiesLimited_MajescoLtd(MJCO)_Q2FY16ResultUpdate_Nov_06_2015.pdf (300.1 KB)
Hello - Attaching Majeso report from India Nivesh. Target price 549. But India Nivesh forgot to subtract the share of Mastek Ltd. and of USA listed entity Majesco to arrive at the valuation of the India holding company Majesco valuation.
India’s Majesco share is roughly 2/3rd so the target prices should be 549 *2/3 = ~ 366 rupees and not 549 rupees.
My two cents.
Awaiting comments
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Sorry - I do not hold any shares of Mastek / Majesco. thanks
Hi @rdhoot, can you pls elaborate the above statement pls? India’s Majesco share is roughly 2/3rd of what??
Hello Advait -
Majesco India holds 69.7% in Majesco US; while Cover-All (now Cover-All shareholders have received Majesco shares) holds 16.5% and Mastek Ltd. owns remaining 13.8%.
So indianivesh has valued the overall Majesco India listed entity at 549 bucks without reducing the shares owned by former Cover-All shareholders (16.5%) and Mastek Ltd (13.8%). So it ignored the fact that Majesco India only owns 69.7% of the Majesco US entity.
So if you reduce the share - then the value of Majesco India (assuming india nivesh’s valuation assumptions) comes to 549 x 69.7% = 382 bucks roughly.
Additionally, Majesco USA is currently trading at 176 Mn USD or roughly 1,164.2 Cr INR. In comparison - India’s Majesco is trading at 967 Cr INR which only holds 69.7% of Majesco USA entity. Implying 19% premium to US entity (after accounting for 69.7% share) when Indian entity is a holding company and should trade at a discount to US subsidiary.
And so probably promoters are buying Majesco US and not Majesco India shares -
http://www.insider-monitor.com/trading/cik1626853.html
Thanks
No holding in any entity
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Since our last discussion, brokerages became increasingly bullish (esp Indianivesh and HDFC Sec) on MAJESCO and the stock rallied to 700+, cooling now to around 600 levels.
Indianivesh has now come up with the Result update with increase in target price from Rs.778 to Rs.899.
http://indianivesh.accordfintech.com/Downloads/635896617815156250_NiveshDaily_-_27_January_2016.pdf
(Pls refer page no.16 in above attch)
Disc : Invested from lower levels.
Hi Advait
Have you compared the product offerings of Majesco with Guidewire? I had quick view of recent Guidwirie presentation and it seems that Guidewire do not have any L&A products and did not fully understand their cloud platform is their own product or one of the partners. I think Majesco has better offering in this area.
What attracted me is that the customer stickiness in this business and the niche area - less crowded than BFSI products.
Disclosure: Accumulated around 600.
Indianivesh has come out with yet another report on Majesco. Called Nivesh 2020, it is projecting a FY2020 target of 1630 for the company. The report is really a detailed case study and a must read imho, for people interested in this company.
http://indianivesh.in/Downloads/635951071948706250_Majesco_Ltd_(MJCO)_Nivesh_2020_30032016.pdf
@nasarma, you have rightly pointed our that it operates in the niche are of Insurance which is relatively less crowded. But I am not able to compare the product offerings of Majesco with Guidewire. I think some of the domain experts will be in a better position to do so.
Rgds.
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Majesco announced its FY16 Q4 results today. Following is the summary from its site - https://ir.majesco.com/fy16release/
On a quarter-on-quarter basis:
• The operating income was Rs 221.6 crore during the quarter under review as compared to Rs 198.0 crore during the previous quarter reflecting an increase of 11.9% in rupee terms.
• Total income was Rs 223.8 crore during the quarter under review as compared to Rs 199.2 crore during the previous quarter reflecting an increase of 12.4%.
• The Company reported EBITDA (before exceptional items) of Rs 2.7 crore (1.2% of operating income) in Q4FY16 as compared to EBITDA loss of Rs 2.7 crore (-1.4% of operating income) in Q3FY16.
• Net loss stood at Rs 2.0 crore in Q4FY16 as against a Net profit of Rs 7.9 crore in Q3FY16.
• The product research & development spends during the quarter stood at Rs 31.5 crore (14.1% of total income) as compared to Rs 28.5 crore (14.3% of total income) in Q3FY16.
For the Financial Year ended 31st March, 2016:
• The operating income was Rs 757.2 crore for FY 2016 ended on 31st March, 2016.
• Total income was Rs 766.2 crore during the year under review ended on 31st March, 2016.
• The company reported EBITDA (before exceptional items) of Rs 9.9 crore (1.3% of operating income) for FY 2016.
• Net profit stood at Rs 6.9 crore for FY 2016 on 31st March, 2016.
• The product research & development spends was at Rs 108.5 crore (14.2% of total income) during the full year period under review.
Other Operating highlights
• New Accounts and Active clients during the quarter: The Company added 5 new clients during Q4FY16 and also expanded relationship with existing clients that included two Tier -1 accounts. Total active client count (including India clients) as of 31st March, 2016 was 164 as compared to 159 as on 31st December, 2015.
• 12month Order Backlog: The 12-month order backlog stood at Rs 485.0 crore ($73.1 mn) as on 31st March, 2016 and in constant currency stood at Rs 483.6 crore as compared to Rs 422.1 crore ($63.8mn) at the end of Q3FY16, reflecting an increase of 14.5% QoQ in rupee terms.
• Employees: As on 31st March, 2016, the company had a total of 2,465 employees, of which 1,961 employees were based offshore in India while the rest were at various onsite locations outside India. Employee count at the end of 31st December, 2015 was 2,242.
• Cash & Cash Equivalents: The total cash & cash equivalent in Consolidated Majesco Group stands at Rs 127.2 crore as on 31st March, 2016 as compared to Rs 153.7 crore at the end of 31st December, 2015.
• Debt: Total debt at Consolidated Majesco Group on 31st March, 2016 was Rs 91.9 crore as compared to Rs 80.5 crore as at 31st December, 2015.
Mr. Ketan Mehta, Founder and CEO, Majesco., said: “Financial year 2016 has created a base towards the execution of our growth oriented strategy which was outlined early this year around market penetration, investment in solutions and platform for client successes and strategic focus on our cloud business. I am happy to see good growth in terms of 19 new client additions, 47% increase in order backlog and 43% increase in revenue. During the year under review, we continued to invest in our products, sales, marketing and infrastructure by investing 81% over the previous year. We continue to gain momentum across mid-market, start-up and tier 1 carriers with our core, digital, data, distribution and cloud businesses and I am excited to share more about our plans for the future at our May 19, 2016 Investor Day.”
Mr. Farid Kazani, Managing Director, Majesco Ltd., said: “This was the first year where we represented ourselves as a standalone company post demerger. The quarter under review witnessed strong momentum in terms of revenue growth of 11.9% sequentially. The 12 month order backlog during the quarter was at $73.1mn which validates that our investments have been in the right direction and we are on the right track to achieve growth in a year going forward”.
Disclosure: Invested.