Check Before You Invest : Veritas (India) Ltd

BSE: 512229 NSE: ISIN: INE379J01029

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Veritas (India) Ltd belong to?

Veritas (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Veritas (India) Ltd a good quality company?

Veritas (India) Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Veritas (India) Ltd undervalued or overvalued?

Veritas (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Veritas (India) Ltd a good buy now?

Veritas (India) 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 Veritas (India) Ltd?

Veritas (India) Ltd revenue growth is 31.7% for FY-2025, which is above its 5-year CAGR of -9.85%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Veritas (India) Ltd?

Veritas (India) Ltd Return on capital employed is 2.85% for FY-2025, which is below its 5-year historical median of 3.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Veritas (India) Ltd?

Veritas (India) Ltd Return on Asset is 0.87%, which is in line with its 5-year historical median of 0.87%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Veritas (India) Ltd?

Veritas (India) Ltd Return on equity is 2.23% for FY-2025, which is in line with its 5-year historical median of 2.23%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Veritas (India) Ltd?

Veritas (India) Ltd Cash conversion cycle is -11 days, in line with its 5-year historical median of -11 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	0.65	0.64
ROE	2.23	2.23
ROCE	2.85	3.66
Cash Conversion Cycle	-11 days	-11 days

Q.6 Gross Profit margin of Veritas (India) Ltd?

Veritas (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.5% for FY-2025, which is below its 5-year median of 2.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Veritas (India) Ltd?

Veritas (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.06% for FY-2025, which is in line with its 5-year median of 2.06% indicating stable margins.

Q.8 Net Profit Margin of Veritas (India) Ltd?

Veritas (India) Ltd Net Profit Margin is 1.34% for FY-2025, is below with its 5-year median of 1.6%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.5	2.1
Operating Profit Margin	2.06	2.06
Net Profit Margin	1.34	1.6

Q.9 Debt to Equity ratio of Veritas (India) Ltd?

Veritas (India) Ltd Debt-to-Equity ratio is 0.07, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Veritas (India) Ltd?

Veritas (India) Ltd Debt to cash flow from operations is -1.31, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Veritas (India) Ltd?

Promoters hold 55.01% of the Veritas (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Veritas (India) Ltd vs industry peers?

Veritas (India) Ltd revenue CAGR is -9.85%, compared to the industry median CAGR of 12.68%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	31.7	12.7
Gross Profit Growth	-	18.5
Operating Profit Growth	25	15.2
Net Profit Growth	-	16.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.65	0.81
ROE	2.23	2.6
ROCE	2.85	3.8
Cash Conversion Cycle (days)	-11.15	61

Valuation & price assessment

Q.1 Stock return of Veritas (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	4.9%	22%	7.6%	-53.4%

Q.3 Valuation ratios of Veritas (India) 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	114.01	142.38	33.44
Price to Book	2.43	2.82	1.58
Price to Sales	16.54	2.79	2.20
EV to EBITDA	84.68	93.29	14.05

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