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Check Before You Invest : Vama Industries Ltd

BSE: 512175 NSE: ISIN: INE685D01022
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Vama Industries Ltd belong to?
Vama Industries Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Vama Industries Ltd a good quality company?
Vama Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Vama Industries Ltd undervalued or overvalued?
Vama Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Vama Industries Ltd a good buy now?
Vama 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

Q.1 Revenue growth of Vama Industries Ltd?
Vama Industries Ltd revenue growth is 1,133% for FY-2025 , which is below its 5 year CAGR of 31.8% , indicating slower growth.
Q.2 Gross Profit margin of Vama Industries Ltd?
Vama Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025 , which is above its 5 year median of 2.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Vama Industries Ltd?
Vama Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.57% for FY-2025 , which is in line with its 5 year median of 3.57% indicating stable margins.
Q.4 Net Profit Margin of Vama Industries Ltd?
Vama Industries Ltd Net Profit Margin is 3.08% for FY-2025 , is above with its 5 year median of 0.65%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 3 2.5
Operating Profit Margin 3.57 3.57
Net Profit Margin 3.08 0.65
Q.5 Return on Asset of Vama Industries Ltd?
Vama Industries Ltd Return on Asset is 6.63%, which is above its 5 year historical median of 0.22%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Vama Industries Ltd?
Vama Industries Ltd Return on equity is 12.76% for FY-2025 , which is above its historical median of 0.51%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Vama Industries Ltd?
Vama Industries Ltd Return on capital employed is 11.86% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Vama Industries Ltd?
Vama Industries Ltd Cash conversion cycle is 45 days, below its historical median of 355 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.15 0.33
ROE 12.76 0.51
ROCE 11.86 6.64
Cash Conversion Cycle 45 days 355 days
Q.9 Debt to Equity ratio of Vama Industries Ltd?
Vama Industries Ltd Debt-to-Equity ratio is 0.06 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Vama Industries Ltd?
Vama Industries Ltd Debt to cash flow from operations is 0.27 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vama Industries Ltd?
Promoters hold 42.94% of the Vama Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vama Industries Ltd vs industry peers?
Vama Industries Ltd revenue CAGR is 31.82% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 64.2 23.6
Gross Profit 1.9 1.9
Operating Profit 2.2 1.2
Net Profit 2 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.15 0.45
ROE 12.76 4.09
ROCE 11.86 6.4
Cash Conversion Cycle (days) 45.34 36

Valuation & price assessment

Q.1 Stock return of Vama Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1.9% -8.5% -4.8% -33.4%
Q.3 Valuation ratios of Vama Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 26.65 0.00 22.96
Price to Book 1.44 2.41 2.61
Price to Sales 1.87 3.50 4.40
EV to EBITDA 13.37 52.47 17.20

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