Check Before You Invest : Varvee Global Ltd

Snapshot

Q.1 Which industry/sub-sector does Varvee Global Ltd belong to?

Varvee Global Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Weaving segment.

Q.2 Is Varvee Global Ltd a good quality company?

Varvee Global Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Varvee Global Ltd undervalued or overvalued?

Varvee Global Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Varvee Global Ltd a good buy now?

Varvee Global 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 Varvee Global Ltd?

Varvee Global Ltd revenue growth is -49.9% for FY-2025, which is below its 5-year CAGR of -40.4%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Varvee Global Ltd?

Varvee Global Ltd Return on capital employed is 21.49% for FY-2025, which is above its 5-year historical median of -6.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Varvee Global Ltd?

Varvee Global Ltd Return on Asset is 7.51%, which is above its 5-year historical median of -9.52%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Varvee Global Ltd?

Varvee Global Ltd Return on equity is 70.06% for FY-2025, which is above its 5-year historical median of -42.53%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Varvee Global Ltd?

Varvee Global Ltd Cash conversion cycle is 753 days, above its 5-year historical median of 370 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	0.17	0.34
ROE	70.06	-42.53
ROCE	21.49	-6.78
Cash Conversion Cycle	753 days	370 days

Q.6 Gross Profit margin of Varvee Global Ltd?

Varvee Global Ltd Gross profit margin which is the profit after deduction of direct costs, is 87.5% for FY-2025, which is above its 5-year median of -24.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Varvee Global Ltd?

Varvee Global Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -211.83% for FY-2025, which is below its 5-year median of -9.49% indicating decreasing margins.

Q.8 Net Profit Margin of Varvee Global Ltd?

Varvee Global Ltd Net Profit Margin is 43.68% for FY-2025, is above with its 5-year median of -26.48%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	87.5	-24.5
Operating Profit Margin	-211.83	-9.49
Net Profit Margin	43.68	-26.48

Q.9 Debt to Equity ratio of Varvee Global Ltd?

Varvee Global Ltd Debt-to-Equity ratio is 2.64, which is above with the industry average of 0.82, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Varvee Global Ltd?

Varvee Global Ltd Debt to cash flow from operations is 3.43, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Varvee Global Ltd?

Promoters hold 65.63% of the Varvee Global Ltd, with 14.17% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Varvee Global Ltd vs industry peers?

Varvee Global Ltd revenue CAGR is -40.40%, compared to the industry median CAGR of -0.62%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-49.9	-0.6
Gross Profit Growth	0	7.6
Operating Profit Growth	0	7
Net Profit Growth	0	22.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.17	1.35
ROE	70.06	1.14
ROCE	21.49	7.09
Cash Conversion Cycle (days)	752.75	93

Valuation & price assessment

Q.1 Stock return of Varvee Global Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	7.8%	43.1%	78.8%	-10%

Q.3 Valuation ratios of Varvee Global 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	9.65	19.06	16.09
Price to Book	2.88	1.31	1.38
Price to Sales	6.62	0.21	0.53
EV to EBITDA	10.37	-15.78	9.19

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