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Check Before You Invest : Vashu Bhagnani Industries Ltd

BSE: 532011 NSE: ISIN: INE147C01017
  |   Sector:  Media   |   Industry:  Film Production, Distribution & Entertainment

Snapshot

Q.1 Which industry/sub-sector does Vashu Bhagnani Industries Ltd belong to?
Vashu Bhagnani Industries Ltd belongs to the Media sector, operating specifically within the Film Production, Distribution & Entertainment segment.
Q.2 Is Vashu Bhagnani Industries Ltd a good quality company?
Vashu Bhagnani Industries Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vashu Bhagnani Industries Ltd undervalued or overvalued?
Vashu Bhagnani Industries Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 362.86 42.33
Price to Book 3.85 2.93
Price to Sales 71.99 24.72
EV to EBITDA 258.44 53.47
Q.4 Is Vashu Bhagnani Industries Ltd a good buy now?
Vashu Bhagnani Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd revenue growth is -83.3% for FY-2025, which is below its 5-year CAGR of -26.57%, indicating slower growth.

Q.2 Gross Profit margin of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.7% for FY-2025, which is in line with its 5-year median of 4.7%, indicating stable margins.

Q.3 Operating Profit Margin of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.12% for FY-2025, which is below its 5-year median of 6.87% indicating decreasing margins.

Q.4 Net Profit Margin of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Net Profit Margin is 3.04% for FY-2025, is in line with its 5-year median of 3.04%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.7 4.7
Operating Profit Margin (%) 6.12 6.87
Net Profit Margin (%) 3.04 3.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Return on Asset is 0.24%, which is below its 5-year historical median of 0.31%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Return on capital employed is 1.03% for FY-2025, which is below its 5-year historical median of 1.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Return on equity is 0.37% for FY-2025, which is below its 5-year historical median of 0.55%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Cash conversion cycle is 1675 days, above its 5-year historical median of 294 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.08 0.15
ROE (%) 0.37 0.55
ROCE (%) 1.03 1.51
Cash Conversion Cycle 1675 days 294 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vashu Bhagnani Industries Ltd?
Vashu Bhagnani Industries Ltd Debt to cash flow from operations is -0.31, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vashu Bhagnani Industries Ltd?

Q.1 Promoter shareholding and pledge status of Vashu Bhagnani Industries Ltd?
Promoters hold 74.48% of the Vashu Bhagnani Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vashu Bhagnani Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vashu Bhagnani Industries Ltd vs industry peers?
Vashu Bhagnani Industries Ltd revenue CAGR is -26.57%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -83.3 -
Gross Profit Growth (%) -100 2.3
Operating Profit Growth (%) -88.9 -
Net Profit Growth (%) -100 9.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.08 0.11
ROE (%) 0.37 -
ROCE (%) 1.03 0.05
Cash Conversion Cycle (days) 1675.06 98

Valuation & price assessment

Q.1 Stock return of Vashu Bhagnani Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 28.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
28.7% 54.3% 51.4% -17.7%
Q.2 Valuation ratios of Vashu Bhagnani Industries Ltd vs historical?
The current P/E ratio of 362.86 is higher than its historical median of 42.33, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 362.86 42.33 28.25
Price to Book 3.85 2.93 1.04
Price to Sales 71.99 24.72 6.25
EV to EBITDA 258.44 53.47 10.21

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