Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on December 3, 2025
- The company is engaged in providing IT services globally for six verticals.
• It has long term relationship with its renowned clients around the world.
• The company marked growth in its top and bottom lines for the reported periods.
• Based on its recent financial data, the issue appears reasonably priced.
• Investors may lap it up for medium to long term.
ABOUT COMPANY:
Methodhub Software Ltd. (MSL) is an Information Technology (IT) services provider conducting business through offices across four locations in India and through its Subsidiaries in the USA and Canada. The Company offers next-gen business solutions to enhance the digital transformation journey of clients across the globe. As of October 31, 2025, MSL along with its Subsidiaries served 29 customers with support of 294 employees and independent consultants, who have domain expertise and experience in evolving technologies. The company leverages the combined expertise of its domain experts and technology specialists to deliver solutions in a manner that produces desired output for customers.
The Company caters enterprises across sectors through consulting, delivery, support services and execution capabilities. It is positioned in offering specific solutions to key industries such as Banking, Financial Services and Insurance (BFSI), Oil & Gas/Energy, Healthcare and Life Sciences, Telecom/Tech Infrastructure, Automotive/Transport, Information Technology (IT) Consulting. Its services are structured around these six core verticals, allowing it to deliver targeted, industry-specific solutions that meet the desired needs of each sector. It offers a wide range of IT and Consulting Services such as Cloud Services, Data & AI Services, Cybersecurity, ERP/CRM Integration, IT Infrastructure, Recruitment Delivery Services and Combined Offerings. In addition, it provides bespoke IT solutions supported by a dedicated and well-managed IT team and a team of seasoned professionals to ensure continuous monitoring and support according to the client’s specific needs. The Information Technology industry is a continuously evolving industry, and the company endeavors to exploit these technological advances to reach audience in India and globally to provide growth, efficiency and advancement in the business objectives. Its success lies in the strength of its relationship with clients and expertise in the industry.
It has been able to build long standing relationship with existing clients which include Indian and multinational corporations. Its team, through their vast experience, efficient and timely delivery, is able to source new business for the Company. As of October 31, 2025, it had overall 294 employees on its and its subsidiaries payroll.
ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 5310200 equity shares of Rs. 10 each to mobilize Rs. 103.02 cr. at the upper cap. The IPO comprises of fresh equity shares issue worth Rs. 87.50 cr. (approx. 4510200 equity shares at the upper cap) and an Offer for Sale (OFS) of 800000 equity shares (worth Rs. 15.52 cr. at the upper cap). The issue opens for subscription on December 05, 2025, and will close on December 09, 2025. The company has announced a price band of Rs. 190 – Rs. 194 per share. Post allotment, shares will be listed on BSE SME. The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter. The issue constitutes 28.17% of the post-IPO paid-up capital of the company. From the net proceeds of the fresh equity issue, it will utilize Rs. 13.60 cr. for repayment/prepayment of certain loans, Rs. 25.00 cr. for working capital, Rs. 4.00 cr. for investment in wholly owned subsidiary MethodHub Consulting Inc. (USA), and the rest for general corporate purposes.
The IPO is solely lead managed by Horizon Management Pvt. Ltd., while Maashitla Securities Pvt. Ltd., is the registrar to the issue. Giriraj Stock Broking Pvt. Ltd., and Rikhav Securities Ltd. are the market makers. The issue is underwritten to the tune of 15% by Horizon Management, and 85% by Giriraj Stock Broking.
Having issued initial equity capital at par value, it issued further equity shares in the price range of Rs. 97 – Rs. 122 per share in August 2025. It has also issued bonus shares in the ratio of 0.70 for 1 in April 2024, 3 for 4 in July 2025. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 2.94, Rs. 3.70, and Rs. 4.57 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 14.34 cr. will stand enhanced to Rs. 18.85 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 365.76 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 35.92 cr. / Rs. 1.34 cr. (FY23- standalone), Rs. 57.59 cr. / Rs. 5.10 cr. (FY24 – consolidated), Rs. 136.01 cr. / Rs. 11.30 cr. (FY25 – consolidated). For H1 of FY26 ended on September 30, 2025, it (on a consolidated basis) posted a net profit of Rs. 10.46 cr. on a total revenue of Rs. 80.22 cr. The company posted steady growth in its top and bottom lines for the reported periods.
For the last three fiscals, the company has posted an average EPS of Rs. 07.23 (Basic), and an average RoNW of 35.09%. The issue is priced at a P/BV of 4.82 based on its NAV of Rs. 40.26 per share as of September 30, 2025, and at a P/BV of 2.52 based on its post-IPO NAV of Rs. 77.04 per share (at the upper cap).
If we attribute annualized super earnings of FY26 on post-IPO paid-up capital, then the issue price is at a P/E of 17.49, and based on its FY25 earnings, the P/E stands at 32.39. Thus, the issue appears reasonably priced. The company is operating as a global hub from India for IT methods and competing the world giants.
For the reported periods, the company has posted PAT margins of 3.74% (FY23), 9.39% (FY24), 8.46% (FY25), 12.90% (H1-FY26), and RoCE margins of 21.07%, 24.87%, 25.71%, 16.80% respectively for the referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It has adopted a dividend policy in January 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Esconet Techno, InfoBeans Techno, and Silver Touch Techno., as its listed peers. They are currently trading at a P/E of 35.8, 21.7, and 37.3 (as of December 03, 2025). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACK RECORD:
This is the 22nd mandate from Horizon Management in the last three fiscals. Out of the last 10 listings, 2 listed at discount, 3 at par, and the rest with premium ranging from 3.08% to 90.00% on the date of listing.
Conclusion / Investment Strategy
MSL is engaged in providing IT services globally for six verticals. It has long term relationship with its renowned clients around the world. The company marked growth in its top and bottom lines for the reported periods. Based on its recent financial data, the issue appears reasonably priced. It is poised for bright prospects ahead. Investors may lap it up for medium to long term.
Review By Dilip Davda on December 3, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
