Tuesday, May 25, 2010

Mega Soft...cmp..Rs 23.50......tapping on HUGE Oppertunity....in USA...

Megasoft Ltd sniffs opportunity as US moves to prepaid

KV Ramana / DNATuesday, May 25, 2010 4:37 IST
  Hyderabad: Megasoft Ltd, the Hyderabad-based telecom technology company, is eyeing a major opportunity in the prepaid segment in the US mobile telephony market.

The company, which supplies several products to clients in US, Latin America and India, sees a major churn in the US market with operators there focusing on the prepaid segment.

“The market in the US is changing particularly in the backdrop of the recent recession. The focus there is shifting towards the prepaid model. So far prepaid constituted about 10% of the US market as against about 70-80% in markets such as India. The change is going to help us get more revenues from that country,” GV Kumar, Megasoft’s CEO, told DNA.
According to Kumar, Sprint, one of its leading customers, has already started offering prepaid brands to its customers in the US.
“We have about 20 customers in the US looking at the new business model,” he said.
Megasoft offers prepaid management platforms to its telecom clients in addition to mobile commerce platform and roaming products, etc. The prepaid platform contributes about 60% to its
revenues while the mobile commerce products bring in 15-20% and roaming products about 8%.
“The mobile prepaid products are going to increase their contribution. We are sure that the revenue-mix by geography too would change with India contributing significant revenues following the entry of 3G operators. The onset of 3G will bring to fore content management services.
Mobile advertising, commerce and other services taking advantage of the higher bandwidth will change the market in India shortly and we see a major opportunity in it,” Kumar said.
For the first quarter-ended March 31, 2010, the company posted revenues of Rs 39.26 crore as against Rs 75.22 crore in the corresponding period of the previous fiscal.
The company’s net profit for the quarter rose to Rs 4.17 crore as against Rs 12 lakh a year ago.
“Though our topline has taken a beating due to the restructuring we did in 2009, the bottomline has significantly improved. This indicates a clear trend for the company and we are hopeful of maintaining the margins,” he said.

My Comments:
I know very well that Sprint is a very big Co in USA...they even tookover some Co..and being  as Sprint customers speaks about Mega Soft products......Mega Soft is upcoming Co and with excellent growth.......and at 23 looks a value BUY....according to me....


  1. Rajeevji,Dujodwala product has come up with excellent results with Profit zoomed upto 1000%.....


  2. i think some year ago visual software merge with mega soft.

  3. Dear Im looking forward to know more about that product. Keep updating about it

  4. With very low promoter holding. Megasoft can be a good takeover story going forward.
    Promoter - 7.24%
    FII - 14.71%
    DII - 13.29%
    others - 64.76%

  5. Rajeev that 14th may stock list was a life saving list for me as u recommended IKF in that. Now I am seeing two more stocks added by u in dark horse category. Will buy them when my next month salary comes.

  6. Hi Raju,
    Promoters stake is very less.In IT Co promoters stake is always less.
    I think promoters may/will increase stake in future while allotting shares to themselves...that is what I am seeing......
    I am seeing Mega soft as a good undervalued stock and seems time has come for Mega Soft to show it's expertise in mobile prepaid products...I am in USA and hence I know very well that how BIG is Sprint...It is a very big Co like Airtel and Ril Com in India,much bigger then these two...and when Sprint netwrok is availing MegaSoft products for prepaid user, it speaks about the credibility of Megasoft Product.It is not easy to have contracts with a Co like Sprint....
    So watch out for this counter....But don't expect fireworks soon..
    I am actually sad to see there is no talk on my stocks which I gave a list on 14 th May 2010...recently....I have given some new virgin stocks which I have written for the first time..
    and no one is talking about it....amazing..!

  7. Share,
    I am not talking of dark horses list.I am talking of the above list of that......have anyone seen what is going on Garg Furnace?Had anyone went to bse site and see the results?Had anyone gone on the website of the Co and see what they are upto?Had anyone read the annoucement at bse of Garg Furnace one by one of last 2-3 yrs?
    I donno, I soometimes gets very frustarated with my readers...No one wants to do nothing...these are the basics things one needs to go through as soon as I give a list here and not discuss stocks in length.....
    Readers are not even ready to put that much of effort?Sometimes I feel,to whom for I am doing these.....those who do not wants to do anything on their own?Why I am putting so much of effort who are all lazy or dead?
    I am dejected and frustarated.....one by one I should have got the feedbacks from readers about the list I gave ....

  8. hi rajeev

    i studied garg on day u recommended but never wrote here. company has come with impressive results, other good thing is a 150cr turnover company has market cap of about 12 cr. Other big positive is when market price is around 24 promoters have alloted warrants at 70 RS.Thanks for another excellent pick


  9. Ravi,
    That is what I wanted....but it is not warrents alloted....it is warrents already converted into shares at Rs 70....read it properly.....the eq has gone up from 3.44 cr to 4 cr due to these........

  10. Hi Rajeev,
    Isnt the low profit margin a cause for concern with garg furnace? I didnt really follow garg furnace due to that.


  11. Rajeev your one more call SKS logistics is also zooming. It has doubled in last 2 months from 16 to 32. I tried to buy that at 17 but then the volume was so less that none sold it. Anyway I have invested in rathi steel and hope the same magic for that.

  12. hi dmt,
    there is one thing which makes me able to see that margin will expand in future...and the hint is, Ravi has discussed one point with me...try to read his whole comment...and try to figure out what is the reason, I feel, the margin will expand...

  13. Dear Rajeev,

    In case of Garg Furnace, they have another subsidiary named Sudhir Forging. Can you please throw some more light on this.


  14. Sunil,
    I have not diggened much there.I have no time for that....but u can go through it and write it here...

  15. Respected Rajiv Sir,
    Went thro Garg Furnace site as well as their cos website. Being located in Ludhiana gives the advantage of being in belt of manufacturing bases where their products are in good demand. Saw their clientele list also including castings to Indian Railways also. Impressive.
    Thanks for the pick Sir.
    Manish Nagarajan

  16. Hi Rajeev,
    Nice post about Mega Soft.
    Thanks for sharing.

  17. Dear rajeev,

    I remember once you mentioned that you will be coming to india,on july. Are you on vacation?


    Vishnu R Nair