SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Valiant Communications Ltd

BSE: 526775 NSE: ISIN: INE760B01019
  |   Sector:  Telecom   |   Industry:  Telecommunication - Equipment

Snapshot

Q.1 Which industry/sub-sector does Valiant Communications Ltd belong to?
Valiant Communications Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Equipment segment.
Q.2 Is Valiant Communications Ltd a good quality company?
Valiant Communications Ltd is a weak quality company, based on a inconsistent 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 Valiant Communications Ltd undervalued or overvalued?
Valiant Communications Ltd appears 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 70.47 60.82
Price to Book 13.75 6.30
Price to Sales 17.42 6.59
EV to EBITDA 46.2 33.69
Q.4 Is Valiant Communications Ltd a good buy now?
Valiant Communications 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 Valiant Communications Ltd?
Valiant Communications Ltd revenue growth is 10.3% for FY-2025, which is below its 5-year CAGR of 23.34%, indicating slower growth.

Q.2 Gross Profit margin of Valiant Communications Ltd?
Valiant Communications Ltd Gross profit margin which is the profit after deduction of direct costs, is 30.7% for FY-2025, which is above its 5-year median of 15.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Valiant Communications Ltd?
Valiant Communications Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.77% for FY-2025, which is above its 5-year median of 15.25% indicating increasing margins.

Q.4 Net Profit Margin of Valiant Communications Ltd?
Valiant Communications Ltd Net Profit Margin is 18.88% for FY-2025, is above its 5-year median of 6.09%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 30.7 15.3
Operating Profit Margin (%) 28.77 15.25
Net Profit Margin (%) 18.88 6.09

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Valiant Communications Ltd?
Valiant Communications Ltd Return on Asset is 15.4%, which is above its 5-year historical median of 5.56%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Valiant Communications Ltd?
Valiant Communications Ltd Return on capital employed is 23.59% for FY-2025, which is above its 5-year historical median of 8.66%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Valiant Communications Ltd?
Valiant Communications Ltd Return on equity is 17.71% for FY-2025, which is above its 5-year historical median of 6.37%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Valiant Communications Ltd?
Valiant Communications Ltd Cash conversion cycle is 202 days, in line with its 5-year historical median of 202 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 (x) 0.82 0.82
ROE (%) 17.71 6.37
ROCE (%) 23.59 8.66
Cash Conversion Cycle 202 days 202 days

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

Q.9 Debt to Equity ratio of Valiant Communications Ltd?
Valiant Communications Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Valiant Communications Ltd?
Valiant Communications Ltd Debt to cash flow from operations is 1.07, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Valiant Communications Ltd?

Q.1 Promoter shareholding and pledge status of Valiant Communications Ltd?
Promoters hold 40.62% of the Valiant Communications Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Valiant Communications Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Valiant Communications Ltd vs industry peers?
Valiant Communications Ltd revenue CAGR is 23.34%, compared to the industry median CAGR of 12.15%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.3 12.2
Gross Profit Growth (%) 36.4 42.5
Operating Profit Growth (%) 27.3 20.6
Net Profit Growth (%) 42.9 65.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.82 0.59
ROE (%) 17.71 0.03
ROCE (%) 23.59 1.33
Cash Conversion Cycle (days) 202.34 115

Valuation & price assessment

Q.1 Stock return of Valiant Communications Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 35.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
35.1% 90.6% 124.6% 161.7%
Q.2 Valuation ratios of Valiant Communications Ltd vs historical?
The current P/E ratio of 70.47 is higher than its historical median of 60.82, 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 70.47 60.82 31.57
Price to Book 13.75 6.30 2.63
Price to Sales 17.42 6.59 6.09
EV to EBITDA 46.2 33.69 14.85

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×