MAGELLANIC CLOUD LTD (MCLOUD) fair value: what the stock is really worth
As of Oct 5, 2026: fair value of MAGELLANIC CLOUD LTD ₹36.48, price ₹24.54, upside +48.7%, quality 48 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
20‑month range ₹19.79 – ₹97.28 · fair‑value band ₹15.18 – ₹67.87 · the ₹24.54 price screens below the ₹36.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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Magellanic Cloud Limited, an IT service organization, provides a robust portfolio of cutting-edge digital and IT-enabled services. The company offers software development, cloud computing solutions, cybersecurity services, enterprise IT consultancy, managed services, and digital transformation.
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Magellanic Cloud Limited, an IT service organization, provides a robust portfolio of cutting-edge digital and IT-enabled services. The company offers software development, cloud computing solutions, cybersecurity services, enterprise IT consultancy, managed services, and digital transformation. The company also offers product engineering, product development, quality assurance, DevOps, data analytics, multi-cloud and DevOps automation, process automation, drone solutions, e-security and surveillance, enterprise security, and human capital solutions. Magellanic Cloud Limited was formerly known as South India Projects Limited. The company was incorporated in 1981 and is based in Hyderabad, India.
Stock analysis
MAGELLANIC CLOUD LTD (MCLOUD) currently trades at ₹24.54, while our model-based Fair Value estimate is ₹36.48, implying the stock looks roughly 32.7% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹60.27 per share, and 17 of the 25 models we run sit above the ₹24.54 price.
Bear case: the Growth DCF group reads lowest at ₹5.82, and 8 of the 25 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹15.18 (bear) to ₹67.87 (bull), the price of ₹24.54 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 48/100 (below-average quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
MAGELLANIC CLOUD LTD reported revenue of ₹7.0B in FY2026 versus ₹2.5B in FY2022, a compound +28.9%/yr. Reported net income was ₹1.1B in FY2026, compounding +40.3%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.
Key figures
Market cap ₹14.4B (≈ $149M) · P/E ratio 13.1 · P/S ratio 2.15 · EPS (TTM) ₹1.87 · Dividend yield 0.1% · Net margin 16.4% · Return on equity 19.0% · Return on assets (EBIT) 13.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 68% below its 52-week high and 24% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 44% fair-value upside, at 49%, MCLOUD screens cheaper than that median.
Fair Value models
Bear ₹15.18Fair Value ₹36.48Bull ₹67.87
Price ₹24.54 · Upside +48.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹0.9683 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+16.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.7%
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+27.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+27.2%
Dividend (yield on the price)0.1%
Profit margin 2022 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.2% → 24%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+77.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +70.5% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Information Technology Services · 475 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score48 · Below median
Fair Value upside+48.7% · Above median
Profitability
Return on equity (TTM)19.0% · Top 25%
Return on assets10.1% · Top 25%
Net margin (TTM)15.4% · Top 25%
Operating margin (TTM)20.0% · Top 25%
Growth and dividend
Revenue growth10.0% · Above median
Dividend yield (TTM)0.1% · Bottom 25%
Balance sheet
Debt / equity0.24× · Above median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
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Is MAGELLANIC CLOUD LTD (MCLOUD) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹36.48 versus a price of ₹24.54, about +49% upside (undervalued).
What is the fair value of MCLOUD?
Our model-based fair value for MAGELLANIC CLOUD LTD is ₹36.48 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹24.54.
What is the quality score of MCLOUD?
MAGELLANIC CLOUD LTD has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for MAGELLANIC CLOUD LTD (MCLOUD)?
Our model-based price target is the fair value of ₹36.48 (as of Oct 2, 2026) from 25 valuation models. Cautious scenario ₹15.18, optimistic scenario ₹67.87. It is a calculation from audited fundamentals, not an analyst target.
What is the MAGELLANIC CLOUD LTD stock forecast for 2026?
Our models put fair value at ₹36.48, about +49% upside versus a price of ₹24.54 (undervalued). Cautious scenario ₹15.18, optimistic scenario ₹67.87. The calculation is refreshed regularly with new filings.
What is the revenue of MAGELLANIC CLOUD LTD (MCLOUD)?
MAGELLANIC CLOUD LTD reported trailing-twelve-month revenue of about ₹7.1B (latest available figure, as of Oct 2, 2026).
Does MAGELLANIC CLOUD LTD pay a dividend?
MAGELLANIC CLOUD LTD currently shows a dividend yield of about 0.11% relative to its recent price (as of Oct 2, 2026).
What growth is priced into MAGELLANIC CLOUD LTD (MCLOUD)?
For today's price to be fair in a discounted-cash-flow model, MAGELLANIC CLOUD LTD would have to grow free cash flow by +77.6 % per year for five years (discount rate 13.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 4 years revenue grew +28.9 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of MCLOUD use?
Our models discount MAGELLANIC CLOUD LTD at 13.9 %: a base by market capitalisation (micro), damped by beta 0.06, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For MAGELLANIC CLOUD LTD that is +77.6 % per year a year over ten years, using the same discount rate (13.9 %) and the same formula as our fair value.
How much growth has MAGELLANIC CLOUD LTD (MCLOUD) delivered so far?
Over the past 4 years revenue at MAGELLANIC CLOUD LTD grew +28.9 % a year. The price currently implies +77.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of MAGELLANIC CLOUD LTD (MCLOUD) growing?
The median revenue growth in the sector is +16.8 % a year. That is the yardstick for the growth priced into MAGELLANIC CLOUD LTD (+77.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of MAGELLANIC CLOUD LTD (MCLOUD)?
The free-cash-flow yield on the price is 0.41 %: that much free cash flow MAGELLANIC CLOUD LTD produces per unit of market value. When it exceeds the discount rate of our models (13.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of MAGELLANIC CLOUD LTD (MCLOUD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For MAGELLANIC CLOUD LTD it is ₹36.48 per share (as of Oct 2, 2026), against a price of ₹24.54. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is MAGELLANIC CLOUD LTD stock overvalued or undervalued in 2026?
As of Oct 2, 2026, MCLOUD trades below its calculated fair value: price ₹24.54, fair value ₹36.48, a gap of about +49% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MCLOUD?
No. The price is what the market pays today (₹24.54); the fair value is what the company's own numbers justify (₹36.48). For MAGELLANIC CLOUD LTD the two are ₹11.94 per share apart. That gap is exactly why we show both numbers side by side.
How much is MAGELLANIC CLOUD LTD worth?
The market values MAGELLANIC CLOUD LTD at about ₹14.4B (market capitalisation, as of Oct 2, 2026). Per share that is ₹24.54; our models calculate a fair value of ₹36.48 per share.
What do the bullish and bearish scenarios say about MCLOUD?
Our models span a range for MAGELLANIC CLOUD LTD: cautious scenario ₹15.18, base ₹36.48, optimistic ₹67.87 per share (as of Oct 2, 2026, price ₹24.54). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MCLOUD?
MAGELLANIC CLOUD LTD trades at a price-to-earnings ratio of 13.1 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹36.48 is built from several models across several years. Other multiples: P/B 2.1, P/S 2.0, EV/EBITDA 7.8.
How solid is the balance sheet of MAGELLANIC CLOUD LTD (MCLOUD)?
Balance-sheet figures for MAGELLANIC CLOUD LTD (as of Oct 2, 2026): return on equity 19.0%, debt of 0.24 per unit of equity. They feed the Quality Score of 48/100, which measures business quality independently of the share price.
How far is MCLOUD from its 52-week high?
MAGELLANIC CLOUD LTD trades at ₹24.54, about 68% below its 52-week high of ₹75.73 and 24% above the low of ₹19.79 (as of Oct 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹36.48 is for.
Which stocks are comparable to MAGELLANIC CLOUD LTD?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is MAGELLANIC CLOUD LTD stock attractive at the current price?
The data as of Oct 2, 2026: price ₹24.54, calculated fair value ₹36.48 (+49%), Quality Score 48/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MCLOUD calculated?
We run MAGELLANIC CLOUD LTD through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹36.48, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.0 % above its aggregate fair value. MAGELLANIC CLOUD LTD currently trades 33 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of MAGELLANIC CLOUD LTD (MCLOUD)?
The closing price on Oct 5, 2026 was ₹24.54. Our model-based fair value is ₹36.48, about +49% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with MAGELLANIC CLOUD LTD right now?
The model range is unusually wide (₹15.18 to ₹67.87). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of MAGELLANIC CLOUD LTD
How large is the market capitalisation of MAGELLANIC CLOUD LTD (MCLOUD)?
The market capitalisation of MAGELLANIC CLOUD LTD is ₹14.4B (≈ $149M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of MAGELLANIC CLOUD LTD (MCLOUD)?
The price-to-sales ratio of MAGELLANIC CLOUD LTD is 2.15 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of MAGELLANIC CLOUD LTD (MCLOUD)?
Earnings per share at MAGELLANIC CLOUD LTD are ₹1.87 (price ÷ EPS = P/E 13.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of MAGELLANIC CLOUD LTD (MCLOUD)?
The dividend yield of MAGELLANIC CLOUD LTD is 0.1% (payout 1.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of MAGELLANIC CLOUD LTD (MCLOUD)?
The net margin of MAGELLANIC CLOUD LTD is 16.4% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of MAGELLANIC CLOUD LTD (MCLOUD)?
The return on equity (ROE) of MAGELLANIC CLOUD LTD is 19.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of MAGELLANIC CLOUD LTD (MCLOUD)?
On an EBIT basis the return on assets of MAGELLANIC CLOUD LTD is 13.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of MAGELLANIC CLOUD LTD (MCLOUD)?
The operating margin of MAGELLANIC CLOUD LTD is 20.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at MAGELLANIC CLOUD LTD (MCLOUD)?
Revenue at MAGELLANIC CLOUD LTD is growing +10.0% versus a year earlier (3y avg +17.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at MAGELLANIC CLOUD LTD (MCLOUD)?
Earnings per share at MAGELLANIC CLOUD LTD are growing −14.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does MAGELLANIC CLOUD LTD (MCLOUD) carry?
The net debt of MAGELLANIC CLOUD LTD is ₹2.5B (fiscal year 2026, ≈ 42.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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