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MSTC Fair Value & Analysis

Technology · IN · Market cap ₹36.8B

M MSTC MSTC · BSE
Price₹701.25
Fair Value₹785.42
Upside+12.0%
Quality73/100
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Strengths

Trades 12% below our fair value of ₹785.42
Low debt

Risks

!Mixed Growth
!Thin margins · 0.0% net margin
!Moderate moat 60/100
!The models disagree: range ₹554.61 to ₹1,947
Mixed Growth
Thin margins · 0.0% net margin
Low debt
Moderate moat 60/100
Evidence: High Range ₹554.61 – ₹1,947 Share as image

Fair value as of: Aug 22, 2026

From 23 valuation models · updated yesterday

Share price +18.7% over the past month.

A solid business, screening 12% undervalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The model range is unusually wide (₹554.61 to ₹1,947). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from ₹554.61 (bear) to ₹1,947 (bull), base ₹785.42. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 73/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹1,112 ₹228.85 Fair Value ₹785.42 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹228.85 – ₹1,112 · fair‑value band ₹554.61 – ₹1,947 · the ₹701.25 price screens below the ₹785.42 fair value. Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

MSTC (MSTC) currently trades at ₹701.25, while our model-based Fair Value estimate is ₹785.42, implying the stock looks roughly 12.0% undervalued today. The Quality Score stands at 73/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

The stock trades on a trailing P/E of 18.7 (as of Aug 22, 2026). Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹554.61 (bear case) to ₹1,947 (bull case); at ₹701.25, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 94% above its 52-week low. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 12%, MSTC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF ₹486.45 ₹652.95 ₹937.75 80
Residual Income ₹486.41 ₹611.35 ₹3,917 76
ROIC Compounder ₹657.31 ₹776.55 ₹888.69 72
All 23 models by family
DCF Models
FCF DCF ₹466.11 ₹637.65 ₹955.36 38
Owner Earnings ₹755.18 ₹1,040 ₹1,568 31
5Y Revenue Exit ₹314.52 ₹411.71 ₹552.28 39
5Y EBITDA Exit ₹802.78 ₹1,257 ₹1,859 41
5Y P/E Exit ₹1,055 ₹1,694 ₹2,455 38
10Y Revenue Exit ₹365.21 ₹443.04 ₹523.24 36
10Y EBITDA Exit ₹667.04 ₹965.77 ₹1,290 37
10Y P/E Exit ₹820.38 ₹1,236 ₹1,640 35
Earnings-Based
Graham-Dodd ₹528.06 ₹645.41 ₹726.09 54
EPV ₹657.31 ₹762.00 ₹853.59 59
Dividend Discount
Gordon GGM ₹505.58 ₹553.39 ₹626.23 70
DDM Multi-Stage ₹505.58 ₹634.33 ₹814.79 61
Multiples
P/E Multiple ₹1,631 ₹2,174 ₹2,718 63
P/S Multiple ₹244.70 ₹326.27 ₹407.83 58
P/B Multiple ₹633.89 ₹845.19 ₹1,056 55
EV/EBIT ₹1,532 ₹2,033 ₹2,534 53
EV/EBITDA ₹1,180 ₹1,563 ₹1,947 54
EV/Revenue ₹236.85 ₹325.83 ₹414.81 43
Asset-Based
NCAV (Graham) ₹70.43 ₹94.38 ₹140.87 50
Growth DCF
Growth DCF ₹486.45 ₹652.95 ₹937.75 80
Economic Profit
Residual Income ₹486.41 ₹611.35 ₹3,917 76
ROIC Compounder ₹657.31 ₹776.55 ₹888.69 72
Growth Earnings
Growth-Adj P/E ₹1,141 ₹1,630 ₹2,118 68

Widest divergence: Growth Earnings (₹1,630) versus Asset-Based (₹94.38). Highest evidence: Growth DCF (80).

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Key figures & financial health

Return on equity 5,876%
P/E ratio 18.7 as of Aug 22, 2026
EPS (TTM) ₹63.16

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 71 · Market factors (momentum, volatility) 71

Profitability 71
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 29
Calm price path (market factor)
Momentum 88
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

MSTC reported revenue of ₹3.1B in FY2024 versus ₹7.8B in FY2020, a compound −20.6%/yr. Reported net income was ₹4.1B in FY2024, compounding +37.8%/yr from FY2020.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
₹3.1B
Latest YoY
−1.7%
Avg. growth/yr (3Y) 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.
−29.2%
Avg. growth/yr (5Y) 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.
−24.1%
Avg. growth/yr (8Y) 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.
−19.4%
Revenue −20.6%/yr
FY20 ₹7.8B
FY21 ₹8.8B
FY22 ₹7.2B
FY23 ₹3.2B
FY24 ₹3.1B
Net income +37.8%/yr
FY20 ₹1.1B
FY21 ₹2.0B
FY22 ₹2.4B
FY23 ₹1.7B
FY24 ₹4.1B

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Cite: Fair Value Calculator (2026). "MSTC Fair Value". https://www.fairvalue-calculator.com/stock/MSTC

Peer Group

Software & IT Services · 33 stocks

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.

Quality Score 73 · Top 25%
Fair Value upside +12% · Above median
Return on assets 0% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth 0% · Below median
Dividend yield (TTM) 7.9% · Top 25%

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is MSTC overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹785.42 versus a price of ₹701.25, about +12% (undervalued).
What is the fair value of MSTC?
Our model-based fair value for MSTC is ₹785.42 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹701.25.
What is the quality score of MSTC?
MSTC has a Quality Score of 73/100. 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 net profit margin of MSTC?
The net profit margin of MSTC is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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