Aurum Proptech Ltd. share price target

Aided by investments in cloud and key initiatives like the IBM partnership, Majesco Limited (Majesco) reported a decent set of numbers for 1QFY19. Its USD revenue grew by 1.8% QoQ (1.9% QoQ in CC terms) to US$33.5mn, which in INR terms rose by 5.9% QoQ to Rs2.29bn. YoY USD revenue rose by a healthy 20.2%. Profitability witnessed robust growth owing to healthy revenue growth, with 74bps QoQ expansion in EBITDA margin to 8.2%. Notably, Majesco's EBITDA margin has surged by a substantial 1,108bps in last 4 quarters. Revenue and earnings continue to see an upswing, in-line with estimates we outlined in our 1QFY18 earnings update. From geographical perspective, North America drove growth with 5% QoQ USD revenue rise....

We maintain BUY with a TP of Rs 653 (upside of 25%) based on EV/rev multiple of 2.0x (~70% discount to Guidewire) Majesco delivered healthy 4QFY18 both on the revenue and margin front. Revenue grew 3.7% QoQ to USD 32.9mn vs est. of USD 33.5mn led by continued traction in cloud revenue (+5.6% QoQ, 31.3% of rev). MetLife implementation is driving cloud rev which will continue till Oct-18. This will shift to cloud subscription revenue model (~9% of rev in FY18), which is annuity in nature with higher margins.

EBITDA margins expanded ~300 bps QoQ to 7.5% largely on account of revenue growth and lower other expenses (down 20.5% QoQ) partly offset by higher employee expenses (up 9.5% QoQ). Higher employee expenses in the quarter were mainly on account of Esop cost and incentives given in this quarter PAT was at | 10.1 crore compared to a net loss of | 12.9 crore in the preceding quarter mainly driven by the overall operational performance and higher other income...

Majesco Limited (Majesco) announced a good set of numbers in 4QFY18 with revenue rising 3.7% QoQ in USD terms to US$32.9mn (3.6% in CC terms), while revenue n INR terms rose 4.5% QoQ to Rs2.17bn. Profitability improved owing to the healthy revenue growth, with EBITDA margin rising strongly by 293bps QoQ to 7.5%. In the past 3 quarters, Majesco's EBITDA margin has surged by a substantial 1,033bps. Majesco's revenue continues to see an upswing, in line...

We maintain BUY with a TP of Rs 645 (upside of 28%) based on EV/rev multiple of 2.0x (~70% discount to Guidewire). Majesco delivered growth in 3QFY18 for the second consecutive quarter. Revenue grew 4.7% QoQ to USD 31.8mn vs est. of USD 32.0mn led by traction in cloud revenue and robust deal wins. Ramp-up in implementation revenue from the Metlife deal win from the IBM partnership is driving growth, (cloud revenue was up 5.7% QoQ, 31% of rev), and ~37% of the incremental revenue was from cloud.

Majesco reported its Q2FY18 numbers wherein $ revenues grew strongly by 8.7% QoQ after four consecutive quarters of sequential revenue decline. Rupee revenues grew 8.8% QoQ to | 199.1 crore EBITDA for the quarter came in at | 2.2 crore compared to operating loss of | 5.2 crore in Q1FY18. EBITDA margins expanded ~400 bps QoQ to 1.1% largely on account of revenue growth PAT was at | 10.7 crore vs. net loss of | 5 crore in the preceding quarter largely due to the overall operational performance and an...

We increase our EV/revenue multiple to 2.0x (earlier 1.8x), based on better visibility and maintain BUY with a TP of Rs 680 (28% upside from CMP). Majesco delivered strong growth in 2QFY18, after four consecutive quarters of revenue decline. Revenue grew 8.7% QoQ to USD 30.3mn vs est. of USD 30.8mn. The first cloud deal win (MetLife) from the IBM partnership is driving growth (cloud revenue was up 28% QoQ, 31% of revenue), and ~83% incremental revenue was from cloud.

Majesco's revenue in 2QFY18 saw a healthy 8.8% QoQ growth (8.6% in CC terms) led by IBM partnership and strong growth in Cloud segment, which reflects pay-off on investments made over the past few quarters. The company leveraged its IBM relationship, which implies order wins potentially worth US$35mn over a 10-year time frame. However, the order book growth...

Maintain BUY with a TP of Rs 540, based on 1.8x FY19E EV/revenue multiple Majesco posted weak numbers in 1QFY18. Revenue declined 0.8% QoQ to USD 27.9mn vs. our estimate of USD 28.9mn. This was the fourth consecutive quarter of decline in revenue, and was led by shift in client preferences (on-premise to cloud), low revenue from cloud deals initially (will ramp-up later) and client-specific issues (L&A;). We believe these issues are a thing of the past, and recovery will commence from 2QFY18.

Revenue Disappoints; Order Book Traction Back on Track Majesco Limited has delivered another soft performance in 1QFY18 with its revenue declining by 0.8% QoQ to US$27.9mn (-4.1% QoQ to Rs1.83bn in INR terms). Its profitability felt a jolt, with the company recording Rs52mn EBITDA loss (EBITDA margin of -2.9%) owing to revenue decline and investments made for growth. However, the order book saw healthy growth of >20% QoQ to US$77.2mn, while TTM order book grew by a robust 45.8% QoQ to US$188.4mn, signalling improving revenue traction led by IBM partnership and strong deal wins in Cloud space. Thus, we expect Majesco to witness a healthy revenue trajectory from 2QFY18E onwards....