Majesco Company Analysis

SECTOR Overview : Insurance companies are important part in Financial Services due to many reasons. They bear and transfer the Risk, invest big amount for utilising the amount which is collected as premium. Insurance contracts and also holding period of insurance companies for their Investment is also long with big and huge volume of transaction. The data and information of insurance contract parties are to be stored for longer period. Some insurance companies also have network all over the world. MetLife, Prudential are examples. One more thing is the contract or transaction are repetitive nature. Some what similar. That Makes necessary to seek the help of machines to Process the data or save data or to keep the data for long-term. That makes their needs for IT applications different then banks, financial services companies. Initially they used punch machine for that. But as the penetration increased and the awareness of insurance is also increase, this is useless.

As the emergence and development of computer makes it easier to process and store the data. That one thing attached information Technology and insurance. There are many applications of Information Technology in insurance. Life insurance company need different and general insurance companies need different applications.

Life insurance companies need to service existing policies, send notice to all policy holders who’s policies are coming to an end. Some policies permit the policy holders to take loan. That makes more workload and paperwork on company. Computers make it easier to understand if there is any pattern and use it for making new types of Schemes and finding out how many of my current customers may need Them. Computer also makes it possible to mine past data and use them in various need.

In general insurance companies, they need reinsurance and coinsurance, policy management, risk management which are slightly different from life insurance.

Isurance company need application for

  • Billing
  • Premium
  • Valuation
  • Operational

And there the role of an IT company come into picture.

Company overview : Majesco limited is an IT company providing and developing Software for mainly insurance and related services. Their customers are mainly from property and Casualty General Insurance, Life insurance, annuity, Pension and Group and Employee Benefit Providers. There are many products include in company’s product Portfolio including  Software development, IT consulting, system integration, Application management, testing, data warehousing and business intelligence, customer relationship management,  the company operates for policy management, claim management and billing function. The company is operating in many countries like USA, Canada, UK, Thailand, Singapore, India.

In addition, the Company offers a range of other technology-based solutions for distribution management, digital, data and cloud that enable organizations to automate business processes across the end-to-end insurance value chain and comply with policies and regulations across their organizations.

Shareholding Pattern : 

Financial Performance and Ratio :  

 2014-152015-16
Revenue027.57
Net Profit(0.03)6.21
Net Profit MarginNa22.5
EPS(12.14)2.50
Book value3.94109.8
Dividend per Share00
RoE02.45
ROCE(149.74) 2.40
ROA(101.72)2.35
Asset Turnover04.70

Future Prospects : As the company operating in diverse geography with having different types of product of insurance which is their core business, it is niche market for them. Though there are many compitition for them from EY, TCS, Accenture, Deloitte etc. But in India, insurance is expected to grow faster. As the financial inclusion taking place, demand of insurance is also increase and so the business Of the company.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter