Check Before You Invest : VB Industries Ltd

BSE: 539123 NSE: ISIN: INE334E01017

| Sector: BFSI | Industry: Finance - Investment

Snapshot

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

VB Industries Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is VB Industries Ltd a good quality company?

VB Industries Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is VB Industries Ltd undervalued or overvalued?

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

Q.4 Is VB Industries Ltd a good buy now?

VB 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 Total Income growth of VB Industries Ltd?

VB Industries Ltd Operating Income growth is -48.84% for FY-2025, which is below its 5-year CAGR of -38.16%, indicating slower growth.

Q.2 Return on Assets of VB Industries Ltd?

VB Industries Ltd Return on Asset is -0.1%, which is in line with its 5-year historical median of -0.1%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	-10.63	1.55
PPOP%	185	-17.02
RoA%	-0.1	-0.1

Q.3 Return on Equity (ROE) of VB Industries Ltd?

VB Industries Ltd Return on Equity is -0.1% for FY-2025, which is in line with its 5-year historical median of -0.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of VB Industries Ltd?

VB Industries Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 185% for FY-2025, which is above its 5-year median(-17.02%), indicating increasing margins.

Q.5 Net Profit Margin of VB Industries Ltd?

VB Industries Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -10.63% for FY-2025, which is below its 5-year median( 1.55%), indicating decreasing margins.

Q.6 Total Asset growth of VB Industries Ltd?

VB Industries Ltd Total Asset growth is -0.16% for FY-2025, which is below its 5-year CAGR of 0.63%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of VB Industries Ltd?

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

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of VB Industries Ltd vs Industry Peers?

VB Industries Ltd AUM CAGR is 0.63%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of VB Industries Ltd vs industry peers

VB Industries Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-10.63	9.95
PPOP%	185	-13.31
RoA%	-0.1	0.8

Q.3 Operating efficiency of VB Industries Ltd vs industry peers?

VB Industries Ltd ROCE (0.1) is below the industry median of (1.9); while the current ROE (-0.1) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-10.63	9.95
PPOP%	185	-13.31
RoA%	-0.1	0.8
ROCE%	0.3	1.9
ROE%	-0.1	1.2

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -32.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-32.2%	54%	17.9%	-11.5%

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	24.66	67.10	33.72
Price to Book	0.11	0.09	0.94
Price to Sales	23.97	11.32	12.44
EV to EBITDA	9.22	35.80	9.97

Q.4 Valuation ratios of VB Industries Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.11% is higher than its historical median of 0.09%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

VB Industries Ltd return on invested capital (ROIC) is -0.1% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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