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Check Before You Invest : Vedant Asset Ltd

BSE: 543623 NSE: ISIN: INE0NC801013
  |   Sector:  BFSI   |   Industry:  Finance - Asset Management

Snapshot

Q.1 Which industry/sub-sector does Vedant Asset Ltd belong to?
Vedant Asset Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.
Q.2 Is Vedant Asset Ltd a good quality company?
Vedant Asset Ltd is a quality company, based on a 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 Vedant Asset Ltd undervalued or overvalued?
Vedant Asset Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 52.9 56.49
Price to Book 2.08 2.39
Price to Sales 3.46 6.03
EV to EBITDA 14.05 26.58
Q.4 Is Vedant Asset Ltd a good buy now?
Vedant Asset 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 Vedant Asset Ltd?
Vedant Asset Ltd revenue growth is 33.5% for FY-2025, which is below its 5-year CAGR of 41.39%, indicating slower growth.

Q.2 Gross Profit margin of Vedant Asset Ltd?
Vedant Asset Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2025, which is above its 5-year median of 17.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Vedant Asset Ltd?
Vedant Asset Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.01% for FY-2025, which is in line with its 5-year median of 6.01% indicating stable margins.

Q.4 Net Profit Margin of Vedant Asset Ltd?
Vedant Asset Ltd Net Profit Margin is 6.54% for FY-2025, is below its 5-year median of 9.26%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.9 17.9
Operating Profit Margin (%) 6.01 6.01
Net Profit Margin (%) 6.54 9.26

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vedant Asset Ltd?
Vedant Asset Ltd Return on Asset is 3.4%, which is below its 5-year historical median of 5.4%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vedant Asset Ltd?
Vedant Asset Ltd Return on capital employed is 6.9% for FY-2025, which is below its 5-year historical median of 7.4%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Vedant Asset Ltd?
Vedant Asset Ltd Return on equity is 4% for FY-2025, which is below its 5-year historical median of 7%, indicating the business is making worse use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Vedant Asset Ltd?
Vedant Asset Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.9 Debt to cash flow from operations of Vedant Asset Ltd?
Vedant Asset Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vedant Asset Ltd?

Q.1 Promoter shareholding and pledge status of Vedant Asset Ltd?
Promoters hold 73.16% of the Vedant Asset Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vedant Asset Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vedant Asset Ltd vs industry peers?
Vedant Asset Ltd revenue CAGR is 41.39%, compared to the industry median CAGR of 33.21%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 33.5 33.2
Gross Profit Growth (%) 64.1 29.8
Operating Profit Growth (%) 0 16.8
Net Profit Growth (%) -8.3 32.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 0.38
ROE (%) 4 16.4
ROCE (%) 6.9 19.35
Cash Conversion Cycle (days) 52.51 1

Valuation & price assessment

Q.1 Stock return of Vedant Asset Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -5.11% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -5.1% -15%
Q.2 Valuation ratios of Vedant Asset Ltd vs historical?
The current P/E ratio of 52.9 is lower than its historical median of 56.49, indicating that the stock is trading below 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 52.9 56.49 33.16
Price to Book 2.08 2.39 5.67
Price to Sales 3.46 6.03 22.04
EV to EBITDA 14.05 26.58 22.96

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