Check Before You Invest : Virtual Galaxy Infotech Ltd

Snapshot

Q.1 Which industry/sub-sector does Virtual Galaxy Infotech Ltd belong to?

Virtual Galaxy Infotech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Virtual Galaxy Infotech Ltd a good quality company?

Virtual Galaxy Infotech Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Virtual Galaxy Infotech Ltd undervalued or overvalued?

Virtual Galaxy Infotech Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Virtual Galaxy Infotech Ltd a good buy now?

Virtual Galaxy Infotech Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd revenue growth is 95.5% for FY-2025, which is above its 3-year CAGR of 41.26%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Return on capital employed is 45% for FY-2025, which is above its 3-year historical median of 35.16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Return on Asset is 23.44%, which is above its 3-year historical median of 16.06%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Return on equity is 47.89% for FY-2025, which is in line with its 3-year historical median of 47.89%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Cash conversion cycle is 11 days, in line with its 3-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	3-year Historic Median
Asset Turnover	0.88	0.75
ROE	47.89	47.89
ROCE	45	35.16
Cash Conversion Cycle	11 days	11 days

Q.6 Gross Profit margin of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 44.1% for FY-2025, which is in line with its 3-year median of 44.1%, indicating stable margins.

Q.7 Operating Profit Margin of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.02% for FY-2025, which is in line with its 3-year median of 46.02% indicating stable margins.

Q.8 Net Profit Margin of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Net Profit Margin is 26.73% for FY-2025, is in line with with its 3-year median of 26.52%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	44.1	44.1
Operating Profit Margin	46.02	46.02
Net Profit Margin	26.73	26.52

Q.9 Debt to Equity ratio of Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Debt-to-Equity ratio is 0.43, 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 Virtual Galaxy Infotech Ltd?

Virtual Galaxy Infotech Ltd Debt to cash flow from operations is 0.92, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Virtual Galaxy Infotech Ltd?

Promoters hold 65.00% of the Virtual Galaxy Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Virtual Galaxy Infotech Ltd vs industry peers?

Virtual Galaxy Infotech Ltd revenue CAGR is 41.26%, compared to the industry median CAGR of 14.77%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	95.5	14.8
Gross Profit Growth	82.8	25.4
Operating Profit Growth	77.4	23.4
Net Profit Growth	100	NAN

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.88	0.6
ROE	47.89	6.54
ROCE	45	8.68
Cash Conversion Cycle (days)	10.84	53

Valuation & price assessment

Q.1 Stock return of Virtual Galaxy Infotech Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Virtual Galaxy Infotech Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	11.77	12.20	45.52
Price to Book	3.46	3.91	2.77
Price to Sales	3.15	3.26	5.01
EV to EBITDA	7.47	7.72	17.23

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