1. At a Glance
Magellanic Cloud Ltd (MCloud) is the corporate equivalent of that college kid who started as a poetry major, dabbled in stand-up comedy, then became a full-stack developer. Originally born as “South India Projects Ltd” (yes, a name straight out of a 1980s cooperative society), it now peddles DevOps, IT consulting, and HR outsourcing. But the real punchline? They once ran FMCG food businesses before dumping them to focus on drones and digital transformation. From ₹20 Cr revenue in 2017 to ₹629 Cr in FY25, it’s one of those “glow-up” stories where the nerd suddenly became prom king—though still overdressed in a 43× P/E tuxedo.
2. Introduction
Imagine telling your parents you’re quitting your respectable FMCG shop to “do IT” because you “believe in the cloud.” Magellanic Cloud did exactly that, and somehow it worked. Incorporated in 1981, the company spent decades in obscurity until someone got the memo that India’s IT services story is more profitable than selling packaged namkeen.
Fast-forward, and Magellanic Cloud is now in theDevOps + HR outsourcing + digital consulting + drone solutionsbusiness. Yes, drones. Nothing screams “synergy” like placing software engineers while flying quadcopters over oil pipelines.
Their subsidiaries make up most of the story:
- JNIT Technologies Inc (US):Contributes ~60% of consolidated revenue.
- Motivity Labs Inc (US):Chips in ~30%. Basically, two American cousins carrying the family.
But the company also went shopping: in 2022, they splurged ~₹327 Cr to acquireIVIS International Pvt LtdandProvigil Surveillance Ltd, moving into surveillance solutions. Add in their “laser-sharp” focus on IT now (bye-bye food biz), and you get a hybrid tech outsourcing-surveillance-HR cocktail.
The financial trajectory looks juicy—revenues have compounded at 28% over 5 years, PAT grew 77% CAGR. But FY25 profit stagnated at ~₹104 Cr. Maybe too many drones, not enough clients?
3. Business Model (WTF Do They Even Do?)
MCloud is like your neighborhood startup founder who keeps adding buzzwords until you stop asking questions. Here’s the breakdown:
- Human Capital:Fancy phrase for IT staffing and recruitment. They place engineers at client sites and take a cut.
- IT Consulting:Digital transformation, modern UX, all the stuff CEOs nod to without understanding.
- DevOps:Helping companies ship buggy software faster, but with continuous integration pipelines.
- Drone Solutions:Yes, they fly drones for surveillance and industrial inspection. No, they’re not
- DJI, calm down.
- Other Bits:Quality assurance, HR solutions, and maybe the odd PowerPoint project.
Revenue Mix (FY22): 90% IT Consulting, 10% FMCG (now sold off). The real pivot was ditching snacks to chase software margins.
Their order book is less public than a PSU’s lunch break, but with 33% operating margins, it’s clear the consulting/staffing model is minting money—until receivables catch up (debtors = 170 days. Ouch).
4. Financials Overview
| Metric | Jun 2025 (Latest Qtr) | Jun 2024 (YoY Qtr) | Mar 2025 (Prev Qtr) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹164 Cr | ₹132 Cr | ₹156 Cr | 24.0% ↑ | 5.1% ↑ |
| EBITDA | ₹57 Cr | ₹53 Cr | ₹45 Cr | 7.5% ↑ | 26.7% ↑ |
| PAT | ₹27.8 Cr | ₹27 Cr | ₹23 Cr | 2.9% ↑ | 20.9% ↑ |
| EPS (₹) | 0.47 | 0.45 | 0.38 | 4.4% ↑ | 23.7% ↑ |
Commentary:Growth is back after a sleepy FY25. QoQ, EBITDA margin recovery is strong (35% vs 29% last quarter). But YoY profit barely moved—either clients delayed payments, or drones got stuck in customs.
5. Valuation (Fair Value RANGE only)
- P/E Method:EPS (₹1.77). Industry P/E ~29. FV = 29 × 1.77 = ₹51. Actual P/E is 43. Translation: priced like Infosys, but still a midcap.
- EV/EBITDA Method:EBITDA ~₹209 Cr. EV/EBITDA 18–20× = EV ₹3,762–₹4,180 Cr. Less net debt ~₹257 Cr → Equity FV range ₹3,500–₹3,900 Cr. Per share ~₹60–₹67.
- DCF Method:Assume 15% growth, 12% WACC, 3% terminal growth → FV range ₹55–₹80.
Educational FV Range:₹55 – ₹70.Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News,
