Majestic Research Services and Solutions

Majestic Research Services & Solutions (MRSS) is one of India’s largest market research company. It got listed in July 2015 on the SME platform through an IPO. The issue price was at Rs.12.75 and then in December 2016, it went for a Follow on Public Offer (FPO) and this time around, the issue price was at Rs.114. Currently, it is quoted at Rs323. Clearly those who stuck around struck gold!

The company has created some confusion by publishing half-yearly numbers and not quarterly as is the norm. Thus what we have is comparison between H2FY17 v/s H2FY16 and it seems to have done well with total income showing a 2 times rise at Rs.13 crore and net profit coming in at Rs.3 crore v/s Rs.1 crore.

The company ended the fiscal FY17 with a total income of Rs.13 crore v/s Rs.9 crore and net profit at Rs.5 crore v/s Rs.2 crore. Its equity is at Rs.5 crore and EPS stands at Rs.10.54 (FV of Rs.10).

The high stock price for a company of this size, market cap atRs.161 crore, comes as a surprise. But then the shareholding pattern reveals low floating stock – promoters hold 60.06% stake and rest, 39.94% is held by some 484 shareholders.