Hi Parag,
Very sound analysis. No wonder, Majesco has hit 52 week low recently.
Any news on metlife going live in concall?
Metlife has said they will be live in 2020 but no specific answer that is exact date
Thnku… What is the source
Download metlife December 2019 presentation from there website under investor relations
Thanku so much…
Article on USA listed arm of majesco
Hey thanks for the article…looks like others are also patiently waiting for the counter to rerate
Concall transcript held on 11 feb
The concall when compared to that of 2-3 quarters back clearly shows the transition going on and reflects well on the management’s strategic efforts. Key point was that only ~20% players are on cloud yet so the addressable opportunity is still huge.
The company needs to sustain the growth rates to command a higher market cap. Currently the counter is clearly undervalued.
What caused today’s fall?
q4 reults: YOY
277cr vs 261cr revenues
23cr vs 9cr net profit.
fy2020: 1040cr vs 988cr revenues
69 vs 54 Net profits
Any thoughts?
Good result. Will wait for next wave of correction, if any to add
The company is currently at a market cap of 1000 cr. It has net cash of 417 cr. So that means that the entire company is available at less than 600 cr. Also it generated a net profit of 90 cr. this year. Which means it is available at a meagre 7.5 times profit. Add to that the fact that it operates in a sector with a huge runway (Cloud based insurance). To me it looks like a steal. Any thoughts?
Absolutely, looks good with a long runway for growth from recurring revenues.
On the valuation front, Looks reasonable. It is a holding company so it will trade at a discount. Personally, I think the growth gives us a the margin of safety at these levels.
I used to own few yrs back and escaped with a small loss after good 18 months of no performance. I was disappointed by the way their outlook was never achieved what they committed at the time of demerger. I will not go into the details about the past but current numbers do not suggest such a rosy picture either. Cash generation remains weak as for FY20 --> ~80% of (PAT + Depreciation) got locked in receivables while consolidated sales growth was hardly 5%. It means that they are using working capital to flog the horse and generate meager sales growth. Let me know if my analysis is wrong as I have not been tracking it for the last few years.
Majesco US has been acquired by PE player for $594 million dollars.
Majesco India is planning to distribute cash of Rs 852 to each shareholder of Majesco, which is more than double the current price- it may take some time to materialise though.
Very disappointing news. I thought this will become a very big story. Alas we hv to settle for this.