Check Before You Invest : Vakrangee Ltd

BSE: 511431 NSE: VAKRANGEE ISIN: INE051B01021

| Sector: IT & ITES | Industry: BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Vakrangee Ltd belong to?

Vakrangee Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q.2 Is Vakrangee Ltd a good quality company?

Vakrangee Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Vakrangee Ltd undervalued or overvalued?

Vakrangee Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Vakrangee Ltd a good buy now?

Vakrangee Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vakrangee Ltd?

Vakrangee Ltd revenue growth is -0.9% for FY-2025, which is above its 5-year CAGR of -21.82%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vakrangee Ltd?

Vakrangee Ltd Return on capital employed is 8.53% for FY-2025, which is above its 5-year historical median of 3.53%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vakrangee Ltd?

Vakrangee Ltd Return on Asset is 3.35%, which is above its 5-year historical median of 1.57%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vakrangee Ltd?

Vakrangee Ltd Return on equity is 7.77% for FY-2025, which is above its 5-year historical median of 1.98%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Vakrangee Ltd?

Vakrangee Ltd Cash conversion cycle is -21 days, in line with its 5-year historical median of -21 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.75	0.67
ROE	7.77	1.98
ROCE	8.53	3.53
Cash Conversion Cycle	-21 days	-21 days

Q.6 Gross Profit margin of Vakrangee Ltd?

Vakrangee Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.6% for FY-2025, which is above its 5-year median of 11.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Vakrangee Ltd?

Vakrangee Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.57% for FY-2025, which is above its 5-year median of 10.71% indicating increasing margins.

Q.8 Net Profit Margin of Vakrangee Ltd?

Vakrangee Ltd Net Profit Margin is 4.48% for FY-2025, is above with its 5-year median of 2.11%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.6	11.1
Operating Profit Margin	13.57	10.71
Net Profit Margin	4.48	2.11

Q.9 Debt to Equity ratio of Vakrangee Ltd?

Vakrangee Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vakrangee Ltd?

Vakrangee Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vakrangee Ltd?

Promoters hold 40.05% of the Vakrangee Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vakrangee Ltd vs industry peers?

Vakrangee Ltd revenue CAGR is -21.82%, compared to the industry median CAGR of 10.13%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.9	10.1
Gross Profit Growth	35	10.8
Operating Profit Growth	-3.9	NAN
Net Profit Growth	100	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.75	0.72
ROE	7.77	10.43
ROCE	8.53	15.4
Cash Conversion Cycle (days)	-20.77	45

Valuation & price assessment

Q.1 Stock return of Vakrangee Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -23.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-23.3%	-32.9%	-27.1%	-29.4%

Q.3 Valuation ratios of Vakrangee Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	61.1	86.32	30.41
Price to Book	4.23	4.27	2.76
Price to Sales	4.1	5.91	4.20
EV to EBITDA	21.49	38.98	15.56

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