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INVESTMENT INSIGHTS

Check Before You Invest : Virinchi Ltd

BSE: 532372 NSE: VIRINCHI ISIN: INE539B01017
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Virinchi Ltd belong to?
Virinchi Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Virinchi Ltd a good quality company?
Virinchi Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Virinchi Ltd undervalued or overvalued?
Virinchi Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Virinchi Ltd a good buy now?
Virinchi 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

Q.1 Revenue growth of Virinchi Ltd?
Virinchi Ltd revenue growth is 5.3% for FY-2025 , which is above its 5 year CAGR of -0% , indicating faster growth.
Q.2 Gross Profit margin of Virinchi Ltd?
Virinchi Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.2% for FY-2025 , which is below its 5 year median of 23.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Virinchi Ltd?
Virinchi Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.67% for FY-2025 , which is below its 5 year median of 22.7% indicating decreasing margins.
Q.4 Net Profit Margin of Virinchi Ltd?
Virinchi Ltd Net Profit Margin is 11.5% for FY-2025 , is above with its 5 year median of 9.79%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 22.2 23.6
Operating Profit Margin 22.67 22.7
Net Profit Margin 11.5 9.79
Q.5 Return on Asset of Virinchi Ltd?
Virinchi Ltd Return on Asset is 2.66%, which is in line with its 5 year historical median of 2.66%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Virinchi Ltd?
Virinchi Ltd Return on equity is 4.03% for FY-2025 , which is above its historical median of 3.97%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Virinchi Ltd?
Virinchi Ltd Return on capital employed is 6.35% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Virinchi Ltd?
Virinchi Ltd Cash conversion cycle is 81 days, above its historical median of 74 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.23 0.27
ROE 4.03 3.97
ROCE 6.35 5.54
Cash Conversion Cycle 81 days 74 days
Q.9 Debt to Equity ratio of Virinchi Ltd?
Virinchi Ltd Debt-to-Equity ratio is 0.32 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Virinchi Ltd?
Virinchi Ltd Debt to cash flow from operations is 11.64 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Virinchi Ltd?
Promoters hold 40.10% of the Virinchi Ltd, with 17.57% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Virinchi Ltd vs industry peers?
Virinchi Ltd revenue CAGR is -0.03% , compared to the industry median CAGR of 2.87% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 139.5 23.3
Gross Profit 30.9 1.8
Operating Profit 32 1
Net Profit 16 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.23 0.44
ROE 4.03 3.97
ROCE 6.35 6.41
Cash Conversion Cycle (days) 81.46 36

Valuation & price assessment

Q.1 Stock return of Virinchi Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 0.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 0.2% 0.6% -15.4% -15.5%
Q.3 Valuation ratios of Virinchi Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 8.78 10.40 22.96
Price to Book 0.45 0.53 2.61
Price to Sales 1.3 0.97 4.40
EV to EBITDA 5.86 4.42 17.20

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