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Majesco Limited Stock Analysis

Majesco Limited Detail

Majesco Limited is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to IT sector.

As per the Company website it is provider of Insurance technology software and information technology services. The Company completely deals with Insurance products (or Insurance domain). It provides information technology services and consulting to property & casualty (general insurance), life, annuity, health, pensions, and group & worksite benefits insurance.

It serves over 150 insurance Property and Casualty and Life, Annuity and Group carriers worldwide by supporting their transformation journey with enabling software and service solutions. The software solutions include policy management, new business / underwriting, rating, billing, claims management, distribution management and a complete digital platform for customer engagement.

Some of the key clients include Homesite home insurance, Urban advantage, Heritage Insurance and Metlife (in collaboration with IBM). It has partnership with leading companies like IBM.

It has established joint Global Delivery Center to support client’s growing demands for agile and cloud based implementations. It has cloud based Insurance products to help Insurance companies transform their legacy applications to new platforms.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Majesco Limited Stock Performance

The stock is new listing on stock exchanges. It got listed in year 2015 at listing price close to 350 INR. It doubled the money of investors with in few months as it touched 700 INR.

But since then it has touched 300 again and is now consolidating in range of 400 to 500 for last one year with low price being 400 and high price being just above 500. So it is range bound stock and there should be any major client win for positive performance.

Majesco Limited My Opinion

Majesco Limited is a IT Company. It offers its own Insurance platform which is Cloud based. It also has tie up with other major Companies like IBM (which have services as well as product division).

Company mainly focuses on Insurance niche. Most of the Insurance players (older one) already have a system of their own which is mostly on legacy platforms. The Company offers new platform suite for different Insurance products. So Companies who are willing to take benefit of new system try to migrate from Legacy system or new system.

Even if it is not complete migration they tend to migrate it phase wise. That is smaller functionalities are migrated or new functionalities are built on top of newer technology stack.

These migration exercises are multi year effort and are major revenue source of any Company. So much fortune of Majesco is dependent on adaptability of its Insurance suite and number of Clients which adopt its product.

I am already invested in IT sector and willing to increase exposure to one more Company. As of now I will track it as based on past record the Services sector have performed better than product companies from India.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.