Thursday, May 2, 2013

Megasoft Ltd ...BSE CODE 532408......A Penny Stock ...CMP 7.11rs

Megasoft is a niche player in hosted and managed solutions in the global telecom space. It has operations in the US, the UK, Latin America, Middle East and Asia-Pacific. Over 60% of its revenue comes from the US, while Latin America contributes another 20%.The company has two business lines:telecom products and product lifecycle management services.The former contributes two-thirds to the topline.Its top five customers account for nearly half of its revenue.With BCGI under its belt, Megasoft has now got access to tier-I telecom players globally including Sprint and Telefonica.It also provides opportunities to cross-sell products and services to the existing clients of BCGI especially in the US telecom market.BCGI acquisition will be visible in the present fiscal.This is likely to help Megasoft report sales of Rs 400 crore and net profit of Rs 80 crore.With the US markets showing weaker growth and the emphasis on cost reduction globally, Megasoft is rightly positioned as a niche player with a strong brand value in the telecom products segment and a number one player in the ADMS and PLM space.Increased focus on innovative technology solutions and a strong R&D back ground along with product development expertise, Megasoft is all set for exploiting this unparallel opportunity to expand and grow in these areas as a strong entity.