Check Before You Invest : Vertex Securities Ltd

BSE: 531950 NSE: ISIN: INE316D01024

| Sector: BFSI | Industry: Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does Vertex Securities Ltd belong to?

Vertex Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Vertex Securities Ltd a good quality company?

Vertex Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Vertex Securities Ltd undervalued or overvalued?

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

Q.4 Is Vertex Securities Ltd a good buy now?

Vertex Securities 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 Vertex Securities Ltd?

Vertex Securities Ltd revenue growth is -0.4% for FY-2025, which is below its 5-year CAGR of 13.27%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vertex Securities Ltd?

Vertex Securities Ltd Return on capital employed is -2.1% for FY-2025, which is below its 5-year historical median of 6.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vertex Securities Ltd?

Vertex Securities Ltd Return on Asset is -2.2%, which is below its 5-year historical median of 0.5%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vertex Securities Ltd?

Vertex Securities Ltd Return on equity is -7.6% for FY-2025, which is below its 5-year historical median of 2.1%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vertex Securities Ltd?

Vertex Securities Ltd Cash conversion cycle is -725 days, above its 5-year historical median of -978 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.24	0.2
ROE	-7.6	2.1
ROCE	-2.1	6.3
Cash Conversion Cycle	-725 days	-978 days

Q.6 Gross Profit margin of Vertex Securities Ltd?

Vertex Securities Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.8% for FY-2025, which is below its 5-year median of 7.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Vertex Securities Ltd?

Vertex Securities Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.48% for FY-2025, which is below its 5-year median of 2.71% indicating decreasing margins.

Q.8 Net Profit Margin of Vertex Securities Ltd?

Vertex Securities Ltd Net Profit Margin is -8.95% for FY-2025, is below with its 5-year median of 2.8%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-5.8	7.1
Operating Profit Margin	-3.48	2.71
Net Profit Margin	-8.95	2.8

Q.9 Debt to Equity ratio of Vertex Securities Ltd?

Vertex Securities Ltd Debt-to-Equity ratio is 0.36, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vertex Securities Ltd?

Vertex Securities Ltd Debt to cash flow from operations is -12.53, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vertex Securities Ltd?

Promoters hold 36.43% of the Vertex Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vertex Securities Ltd vs industry peers?

Vertex Securities Ltd revenue CAGR is 13.27%, compared to the industry median CAGR of 18.37%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.4	18.4
Gross Profit Growth	-180.3	24.6
Operating Profit Growth	-132.2	28.8
Net Profit Growth	-297.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.24	0.26
ROE	-7.6	8.05
ROCE	-2.1	10.2
Cash Conversion Cycle (days)	-725.08	-107

Valuation & price assessment

Q.1 Stock return of Vertex Securities Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	3.4%	36.3%	17.9%	-13.2%

Q.3 Valuation ratios of Vertex Securities 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	-	85.75	20.01
Price to Book	1.91	2.63	1.64
Price to Sales	6.8	5.49	5.20
EV to EBITDA	-53.6	7.66	6.89

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