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MoneyWorks4Me

Check Before You Invest : Vinsys IT Services India Ltd

BSE: 0 NSE: VINSYS ISIN: INE0OSJ01014
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Vinsys IT Services India Ltd belong to?
Vinsys IT Services India Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Vinsys IT Services India Ltd a good quality company?
Vinsys IT Services India Ltd is a average quality company, based on a somewhat consistent 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 Vinsys IT Services India Ltd undervalued or overvalued?
Vinsys IT Services India 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 29.21 54.36
Price to Book 5.4 6.92
Price to Sales 3.24 10.92
EV to EBITDA 20.59 35.73
Q.4 Is Vinsys IT Services India Ltd a good buy now?
Vinsys IT Services India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd revenue growth is 26.8% for FY-2026, which is below its 5-year CAGR of 67.52%, indicating slower growth.

Q.2 Gross Profit margin of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Gross profit margin which is the profit after deduction of direct costs, is 15% for FY-2026, which is below its 5-year median of 16.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.04% for FY-2026, which is below its 5-year median of 17.07% indicating decreasing margins.

Q.4 Net Profit Margin of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Net Profit Margin is 11.27% for FY-2026, is below its 5-year median of 13.44%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15 16.2
Operating Profit Margin (%) 16.04 17.07
Net Profit Margin (%) 11.27 13.44

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Return on Asset is 14.36%, which is below its 5-year historical median of 19.03%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Return on capital employed is 21.42% for FY-2026, which is below its 5-year historical median of 28.69%. 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 Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Return on equity is 20.75% for FY-2026, which is below its 5-year historical median of 25.95%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Cash conversion cycle is 102 days, above its 5-year historical median of 59 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 (x) 1.27 1.34
ROE (%) 20.75 25.95
ROCE (%) 21.42 28.69
Cash Conversion Cycle 102 days 59 days

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

Q.9 Debt to Equity ratio of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Debt-to-Equity ratio is 0.32, which is above the industry average of 0.02, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vinsys IT Services India Ltd?
Vinsys IT Services India Ltd Debt to cash flow from operations is -6.08, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vinsys IT Services India Ltd?

Q.1 Promoter shareholding and pledge status of Vinsys IT Services India Ltd?
Promoters hold 64.42% of the Vinsys IT Services India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vinsys IT Services India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vinsys IT Services India Ltd vs industry peers?
Vinsys IT Services India Ltd revenue CAGR is 67.52%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 26.8 -
Gross Profit Growth (%) - 16.7
Operating Profit Growth (%) 5 17.2
Net Profit Growth (%) - 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.27 0.5
ROE (%) 20.75 5.33
ROCE (%) 21.42 8.34
Cash Conversion Cycle (days) 101.86 36

Valuation & price assessment

Q.1 Stock return of Vinsys IT Services India Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 26.21% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 26.2% 54.6%
Q.2 Valuation ratios of Vinsys IT Services India Ltd vs historical?
The current P/E ratio of 29.21 is lower than its historical median of 54.36, indicating that the stock is trading below 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 29.21 54.36 31.33
Price to Book 5.4 6.92 2.61
Price to Sales 3.24 10.92 4.42
EV to EBITDA 20.59 35.73 15.50

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