Check Before You Invest : Variman Global Enterprises Ltd

BSE: 540570 NSE: ISIN: INE717F01028

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Variman Global Enterprises Ltd belong to?

Variman Global Enterprises Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Variman Global Enterprises Ltd a good quality company?

Variman Global Enterprises Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Variman Global Enterprises Ltd undervalued or overvalued?

Variman Global Enterprises Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Variman Global Enterprises Ltd a good buy now?

Variman Global Enterprises 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 Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd revenue growth is 20.1% for FY-2025, which is below its 5-year CAGR of 26.23%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Return on capital employed is 4.58% for FY-2025, which is below its 5-year historical median of 5.07%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Return on Asset is 0.57%, which is below its 5-year historical median of 0.96%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Return on equity is 1.19% for FY-2025, which is below its 5-year historical median of 1.68%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Cash conversion cycle is 46 days, in line with its 5-year historical median of 45 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	0.98	1.13
ROE	1.19	1.68
ROCE	4.58	5.07
Cash Conversion Cycle	46 days	45 days

Q.6 Gross Profit margin of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.6% for FY-2025, which is below its 5-year median of 1.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.08% for FY-2025, which is below its 5-year median of -0.48% indicating decreasing margins.

Q.8 Net Profit Margin of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Net Profit Margin is 0.61% for FY-2025, is below with its 5-year median of 0.99%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.6	1.9
Operating Profit Margin	-4.08	-0.48
Net Profit Margin	0.61	0.99

Q.9 Debt to Equity ratio of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Debt-to-Equity ratio is 0.48, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Variman Global Enterprises Ltd?

Variman Global Enterprises Ltd Debt to cash flow from operations is -0.8, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Variman Global Enterprises Ltd?

Promoters hold 27.75% of the Variman Global Enterprises Ltd, with 11.08% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Variman Global Enterprises Ltd vs industry peers?

Variman Global Enterprises Ltd revenue CAGR is 26.23%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20.1	12.7
Gross Profit Growth	3	17.9
Operating Profit Growth	0	15.5
Net Profit Growth	-28	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.98	0.81
ROE	1.19	2.6
ROCE	4.58	3.8
Cash Conversion Cycle (days)	46.34	61

Valuation & price assessment

Q.1 Stock return of Variman Global Enterprises Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 7.09% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	7.1%	-31%	-45.1%

Q.3 Valuation ratios of Variman Global Enterprises 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	35.99	251.19	33.44
Price to Book	2.75	9.44	1.58
Price to Sales	1.23	5.94	2.20
EV to EBITDA	17.41	93.45	14.05

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