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Check Before You Invest : Vimta Labs Ltd

BSE: 524394 NSE: VIMTALABS ISIN: INE579C01029
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Vimta Labs Ltd belong to?
Vimta Labs Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Vimta Labs Ltd a good quality company?
Vimta Labs Ltd is a good quality company, based on a consistently good 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 Vimta Labs Ltd undervalued or overvalued?
Vimta Labs Ltd appears Overvalued, as its key valuation ratios are higher 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 29.53 25.48
Price to Book 5.01 3.69
Price to Sales 5.62 3.40
EV to EBITDA 14.8 11.81
Q.4 Is Vimta Labs Ltd a good buy now?
Vimta Labs 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

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 Vimta Labs Ltd?
Vimta Labs Ltd revenue growth is 19.2% for FY-2025, which is above its 5-year CAGR of 13.74%, indicating faster growth.

Q.2 Gross Profit margin of Vimta Labs Ltd?
Vimta Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 36.1% for FY-2025, which is above its 5-year median of 30%, indicating increasing margins.

Q.3 Operating Profit Margin of Vimta Labs Ltd?
Vimta Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.45% for FY-2025, which is above its 5-year median of 29.72% indicating increasing margins.

Q.4 Net Profit Margin of Vimta Labs Ltd?
Vimta Labs Ltd Net Profit Margin is 19.41% for FY-2025, is above its 5-year median of 15.01%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 36.1 30
Operating Profit Margin (%) 35.45 29.72
Net Profit Margin (%) 19.41 15.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vimta Labs Ltd?
Vimta Labs Ltd Return on Asset is 15.76%, which is above its 5-year historical median of 14.25%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vimta Labs Ltd?
Vimta Labs Ltd Return on capital employed is 25.23% for FY-2025, which is above its 5-year historical median of 23.85%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Vimta Labs Ltd?
Vimta Labs Ltd Return on equity is 19.65% for FY-2025, which is in line with its 5-year historical median of 18.73%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Vimta Labs Ltd?
Vimta Labs Ltd Cash conversion cycle is 114 days, in line with its 5-year historical median of 113 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 (x) 0.81 0.81
ROE (%) 19.65 18.73
ROCE (%) 25.23 23.85
Cash Conversion Cycle 114 days 113 days

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

Q.9 Debt to Equity ratio of Vimta Labs Ltd?
Vimta Labs Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vimta Labs Ltd?
Vimta Labs Ltd Debt to cash flow from operations is 0.09, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vimta Labs Ltd?

Q.1 Promoter shareholding and pledge status of Vimta Labs Ltd?
Promoters hold 35.85% of the Vimta Labs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vimta Labs Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vimta Labs Ltd vs industry peers?
Vimta Labs Ltd revenue CAGR is 13.74%, compared to the industry median CAGR of 0.18%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19.2 0.2
Gross Profit Growth (%) 29.2 13.2
Operating Profit Growth (%) 29.8 14.9
Net Profit Growth (%) 36.7 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 0.31
ROE (%) 19.65 4.3
ROCE (%) 25.23 9.42
Cash Conversion Cycle (days) 113.84 46

Valuation & price assessment

Q.1 Stock return of Vimta Labs Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 29.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
29.6% 34.6% 38% 8%
Q.2 Valuation ratios of Vimta Labs Ltd vs historical?
The current P/E ratio of 29.53 is higher than its historical median of 25.48, indicating that the stock is trading above 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 29.53 25.48 26.13
Price to Book 5.01 3.69 2.37
Price to Sales 5.62 3.40 5.96
EV to EBITDA 14.8 11.81 11.62

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