Aurum Proptech Ltd. share price target

Operating result ahead of estimate; Payout to have buyback first Revenue grew 8.8% QoQ CC terms to $41.2mn (DART estm: 3% QoQ growth). INR Revenue grew by 12.4% to Rs. 3,110mn. The growth was led by strong traction in subscriotion revenues through INspro integration. Product Revenue up 34.6% YoY to Rs 1,491mn. EBIT...

Under the terms of the agreement, all Majesco US (US entity) shareholders of record will receive $16 cash for each share of Majesco US common stock held by them upon closing of the transaction. Majesco US board of directors have unanimously approved the merger and recommended that shareholders approve the merger. Majesco India board also approved the revised transaction on August 8, 2020. In order to enhance successful completion of the proposed transaction, under the Revised Support Agreement, the specified promoters have agreed, in their individual capacity...

Deal-well-done'; shareholders to get rich dividends; maintain Buy We believe the significant-premium on the deal valuation is a classic example of what opportunity any cloud based IP-business can achieve given the potential acceleration theme and further reinforce our positive view in the space. We expect the stock to trade about 20% discount (towards tax & time value) to cash-per-share at about Rs680 and would inch higher as more clarity emerges on distribution route and time-lines...

Key highlight of the quarter was go live of IBM MetLife deal. The IBM MetLife deal is currently live for smaller markets. However, eventual progression will be to go live at national and then global level. We believe this will drive its cloud subscription revenues. Also, we believe this will lead to higher larger deals with other Tier-I insurers. Further, Majesco has also entered into a partnership with Capgemini, PwC, Deloitte, Microsoft Azure, which is expected to drive cloud deals. In addition, the company has seen healthy growth in order book that is up 24% YoY in rupee terms (of which 55% is...

The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...

Cloud revenue witnessed growth after two quarters of slowdown. Cloud was supported by nine go-lives, ramp-up of cloud deals and higher implementation revenue from existing clients. Partnership with Capgemini, IBM and Microsoft (Azure) is promising, but not yielding results in terms of large deal wins. Growth in cloud subscription and recurring revenue will lead to margin expansion. We expect revenue CAGR of 10% over FY19-22E with cloud CAGR of 21%. We maintain positive stance on Majesco based on (1) Rising adoption of third-party software by insurers, (2) Solid partnerships, (3) Continued deal wins, and (4) Cloud traction. Risk includes prolonged sales cycle and deterioration in US/Europe macros. We maintain BUY on Majesco based strong recovery in revenue and margin in 3QFY20. Revenue growth was led by cloud traction, nine go-lives and deal ramp-up. EBIT margin expansion was healthy, supported by higher margin cloud subscription revenue. The order backlog is robust and cloud deal wins remains healthy. We increase FY21/22E USD revenue est. by 1.4/1.2% to factor in cloud recovery. Our TP of Rs 663 implies EV/rev multiple of 2.0x on Dec FY21 revenue.

Cloud revenue growth has witnessed slowdown in the last two quarters due to completion of a large project. The back-fill will happen gradually with new deal wins, go-lives and growth in subscription revenue. Partnership with Capgemini, IBM and Microsoft (Azure) looks promising but large deal wins are still not coming. We expect revenue CAGR of 10% over FY19-22E (cloud CAGR of 16%). We maintain our positive stance on Majesco based on (1) Rising adoption of third-party software by insurers, (2) Solid partnerships, (3) Continued deal wins, and (4) Cloud traction. The risk to our thesis includes slowdown in cloud deal wins, prolonged sales cycle and deterioration in US/Europe macros. We maintain BUY on Majesco despite poor 2QFY20. Revenue fall was led by cloud (completion of large implementation) but the fall in EBIT margin was lower than expected. The order backlog remains robust and cloud deal wins are healthy. We cut FY20/21E USD revenue est. by 4.1/5.4% to factor in 2Q miss. Our TP of Rs 677 implies EV/rev multiple of 2.0x on Sep FY21 rev.

The current quarter was marred by multiple headwinds in terms of Brexit related issues in Europe, which led to a decline of 30.7% in revenues from Europe. Further, cloud implementation took a hit due to the IBM-Met life deal, which is about to go live in the coming quarters. The same is reflected in decline in top five clients, which dipped 26.4% QoQ. The silver lining was cloud subscription revenues which increased 19.3% QoQ and the order book remains healthy which grew 1.7% QoQ (up 33.1% YoY). We expect cloud subscription revenues to further improve post the go live of IBMMetLife deal. Majesco has also entered into a partnership with Capgemini,...

Cloud revenue registered 54% YoY growth in FY19, growth was led by MetLife, new deal wins and build-up of cloud subscription revenue. The large MetLife implementation project is complete and is impacting cloud revenue. Back-filling of MetLife revenue will be gradual. New deal wins, extension of the MetLife project to other geographies and increase in minimum subscription revenue will drive growth in cloud. The partnership with Capgemini for L&A and Group life is promising and can bring large deals on the table. We expect USD revenue CAGR of 13% over FY19-22E (cloud CAGR of 21%). We maintain our positive stance on Majesco based on (1) Rising adoption of third-party software by insurers, (2) IBM & Capgemini partnership and (3) Continued deal wins. Risk to our thesis includes a slowdown in deal wins, prolonged sales cycle and deterioration in US/Europe macros. We maintain BUY on Majesco following slight miss on revenue & margins in 1QFY20. Revenue grew despite a steep fall in the cloud revenue and margin expansion (lower than est.) was healthy. The order backlog is robust and cloud deal wins are stable. We await a large deal win from the IBM/Capgemini channel. Our TP of Rs 685 implies EV/rev multiple of 2.0x on June-FY21 rev.

The company has witnessed decline of 4.9% and 20.6% QoQ in cloud subscription and cloud implementation mainly due to completion of IBMMetLife project. The IBM-MetLife deal is expected to go live probably in the middle of Q2FY20E. Once it gets live, the company will receive minimum subscription revenues that will replace some portion of decline in could revenues. In addition, the company is also winning new logos in the cloud that will help boost cloud revenues. Majesco has also entered into a partnership with Capgemini to bring in insurance innovation and business transformation to the life & annuity (L&A;) business and tap the opportunity...

MetLife Go-Live Drags Revenue; Long Term Op-Lev Potential Majesco Limited (MJCO) reported a poor 1QFY20 performance on revenue, which grew 1.2% QoQ in USD terms to US$37.2mn. In INR terms, MJCO's revenue declined by 1% QoQ to Rs2.59bn. YoY USD revenue growth slipped below 10% (9.8%), the lowest since 3QFY18. Revenue was 1.5% below our estimate, with Professional Services continuing to see revenue decline (-4.7% QoQ, 6th successive quarter of decline). YoY Professional Services revenue dipped ~20% (USD), 10th successive quarter of decline. On the other hand, owing to the IBM MetLife deal going live, Cloud implementation revenue (-18.9% QoQ) came off steeply, while Cloud subscription revenue...

Huge shift has happened from on-premise to cloud model for the past two years. Cloud is now ~40% of revenue and de-growth in legacy (~20% of rev) has started to stabilize. The MetLife cloud platform is in its last stages of implementation and will fetch minimum subscription revenue post go-live. Scaling of subscription revenue is the key for margin expansion. The partnership with Capgemini for L&A and Group life is a very positive development and can bring large deals on the table. We expect USD revenue CAGR of 17% over FY19-21E will be driven by cloud CAGR of 36% and stable legacy. We maintain our positive stance on Majesco based on (1) Rising adoption of third-party software by insurers, (2) IBM & Capgemini partnership, (3) Improving deal wins, and (4) ramp-up in cloud revenues. Risk to our thesis includes slowdown in deal wins, increase in R&D and SG&A investments, and global slowdown. We maintain BUY on Majesco following an inline 4QFY19. The order backlog of USD 97mn (+13.5% QoQ) is healthy and partnership with Capgemini reaffirms Majescos product capability. Our TP of Rs 715 (upside of 43%) implies EV/rev multiple of 2.0x on FY21 rev.

Majesco's dollar revenues grew 4.2% QoQ (2.2% organic) while EBITDA margins declined 350 bps QoQ to 7.5% due to marketing expenses, provisions and some expenses incurred in closure of a legal case. Rupee revenues increased 2.7% QoQ in Q4FY19 mainly led by 3.9% QoQ growth in property & casualty (P&C;) and 8.8% sequential growth in cloud revenues. For FY19, dollar revenues increased 13.6% YoY while EBITDA margins expanded from 2.8% in FY18 to 9.6% in FY19 mainly led by IBM deal. Going forward, increase in proportion in cloud revenues (44.2% of total revenues),...

Majesco reported muted growth (0.1% QoQ) on the organic front while full quarter consolidation of Exaxe acquisition amounting to | 12 crore led it to report revenue growth of 5% QoQ to | 254.7 crore. Cloud revenues (41.7% of total revenues) rose 13.1% QoQ driven by 16.7% QoQ increase in cloud implementation revenues supported by 5.5% QoQ growth in cloud subscription revenues. Dollar revenues reported an increase of 4.1% QoQ to $35.4 million EBITDA margins expanded 10 bps QoQ to 11% led by higher cloud...

We maintain BUY with a TP of Rs 761 (upside of 51%) assigning EV/rev multiple of 2.0x on Dec-20 revenues. Majesco delivered decent performance in 3Q both on revenue and margin front. Revenue grew 4.0% QoQ to USD 35.4mn (vs our est. USD 35.3mn) led by cloud traction (+51.5% QoQ, 42% of rev) and USD 1.4mn contribution from Exaxe (organic flat QoQ). Growth in cloud implementation (+17.1% QoQ, 30% of rev) is offsetting the impact of legacy shrinkage (-16% YoY in 9M).

We maintain BUY with a TP of Rs 731 (upside of 47%) assigning EV/rev multiple of 2.0x on Sep-20 revenues. Majesco delivered mixed performance in 2QFY19, revenue growth was soft while margin expansion was heartening. Revenue grew 1.5% QoQ to USD 34.0mn (vs our est. USD 34.6mn) led by cloud traction (+9.4% QoQ, 39% of rev). Strong growth in cloud subscription (+29.1% QoQ, 12% of rev) is offsetting the impact of legacy shrinkage (-7% YoY).

Majesco's rupee revenues increased 5.7% QoQ and 21.8% YoY in Q2FY19 mainly led by 10.8% QoQ growth in life & annuities (L&A;). Cloud revenues (38.7% of total revenues) increased 14.0% QoQ led by 34.5% QoQ increase in cloud subscription revenues and 6.4% QoQ growth in cloud implementation revenues. Geographically, UK (4.8% of total revenues) registered an increase of 22.9% QoQ and North America (88.0% of total revenues) increased 5.4% QoQ0 EBITDA margins expanded ~272 bps QoQ to 10.9% mainly led by...

We maintain BUY with a TP of Rs 665 (upside of 39%) based on EV/rev multiple of 2.0x (~70% discount to Guidewire). Majesco delivered decent performance in 1QFY19 both on the revenue and margin front. Revenue grew 1.8% QoQ to USD 33.5mn (vs our est. USD 33.8mn) led by continued cloud traction (+16.8% QoQ, 36% of rev). Strong growth in cloud implementation (+19.4% QoQ, 26% of rev) and cloud subscription (+10.2% QoQ, 10% of rev) is offsetting the impact of legacy shrinkage. There is clear shift happening from the on-premise to cloud model.

Majesco reported Q1FY19 numbers wherein dollar revenues grew 1.8% QoQ to US$33.5 million while revenues in constant currency grew 1.9%. Rupee revenues grew 5.9% QoQ to | 229.4 crore EBITDA margins expanded ~70 bps QoQ to 8.2% largely on...