Aurum Proptech Ltd. share price target

Majesco posted weak numbers again in 4Q, with a 6.7% QoQ USD revenue decline (USD 28.2mn vs. est USD 30.0mn), led by a continuous shift in client preferences (on-premise to cloud), a very low licence component in cloud deals and client-specific issues (L&A). Margin expansion was encouraging, led by efficient cost management and lower SG&A cost.

Majesco Limited (Majesco) announced another soft quarter in 4QFY17, with revenue declining 6.2% QoQ to US$28.2mn, while profitability was better than expected, with EBITDA margin up 114bps QoQ to 6.8%, aided by cost control. In INR terms, revenue declined 7.1% QoQ to Rs1.9bn. Revenue pressure was owing to some client engagements moving from implementation mode to support mode, and these programs have been replaced by cloud-related projects, which typically earn lower implementation revenue. FY17 has been an underwhelming year for Majesco, with USD revenue up just 7.5% YoY to US$121.8mn, against initial expectations of healthy double-digit revenue growth....

Our positive stance on Majesco is based on (1) Huge addressable opportunity across US-based L&A and P&C insurers, (2) Access to IBM?s clients, leading on to deal wins, and (3) A ramp up in Cloud and Digital Connect Platforms. We have built-in 15% revenue CAGR and 540bps margin expansion over FY17-FY19E. Maintain BUY with a TP of Rs 553, based on 1.8x EV/revenue.

Majesco struggled in 3Q, posting yet another weak quarter, with a 3.3% QoQ USD revenue decline (US$ 30.0mn vs. est US$ 31.6mn), led by slowdown in L&A (-10.1% QoQ) and client specific issues. The margin expansion was a bright point, led by efficient cost management and lower R&D cost.

Majesco posted a muted 2QFY17, with revenue down 4.6% QoQ in USD terms (US$ 31.0mn vs. our estimate of US$ 32.9mn), led by slowdown in top- client. Encouraging part was robust 13.8% QoQ growth in TTM deal wins (US$ 173.9mn) and gross margin expansion ( 441 bps). IBM partnership for developing new cognitive applications on Watson is promising and will start yielding results from 4QFY17E.

Majesco 1Q show was muted primarily due to slowdown in a large account, but a pick-up is expected in 2H. Revenue was up 0.8% QoQ (US$ 32.6mn vs. est US$ 34mn). 12-month order backlog slipped 11.8% QoQ to US$ 63.4mn owing to the absence of large deal wins.

ICICI Securities Ltd | Retail Equity Research We attended Majesco's analyst day wherein it provided business, financial update and strategic direction as it enters the second year of its...

Majesco reported an excellent 3QFY16, with CC revenue up 5.3% QoQ in USD terms (US$ 30.7mn vs. our estimate of US$ 30mn) owing to new client wins and traction in Majesco P&C; suite (new product launches, SI partnerships). It had excellent growth in the 12-month order backlog, up 17.4% QoQ to Rs 4.2bn, led by four new client wins and cross-sell.

In Jun-15, Indian software services firm Mastek spun off its US insurance product arm (Majesco Mastek) as a separate listed entity (Majesco Ltd). Further, a subsidiary of this newly listed entity reverse merged into the US-listed Cover-All Inc, rebranding itself as Majesco US Inc (now a 70% subsidiary of Majesco Ltd).