Check Before You Invest : Virat Leasing Ltd

Snapshot

Q.1 Which industry/sub-sector does Virat Leasing Ltd belong to?

Virat Leasing Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Virat Leasing Ltd a good quality company?

Virat Leasing Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Virat Leasing Ltd undervalued or overvalued?

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

Q.4 Is Virat Leasing Ltd a good buy now?

Virat Leasing 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 Total Income growth of Virat Leasing Ltd?

Virat Leasing Ltd Operating Income growth is 6.9% for FY-2025, which is above its 5-year CAGR of 2.06%, indicating faster growth.

Q.2 Return on Assets of Virat Leasing Ltd?

Virat Leasing Ltd Return on Asset is -1.9%, which is below its 5-year historical median of -0.3%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-32.48	-5.03
PPOP%	-	-
RoA%	-1.9	-0.3

Q.3 Return on Equity (ROE) of Virat Leasing Ltd?

Virat Leasing Ltd Return on Equity is -1.9% for FY-2025, which is below its 5-year historical median of -0.3%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of Virat Leasing Ltd?

Virat Leasing Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -32.48% for FY-2025, which is below its 5-year median( -5.03%), indicating decreasing margins.

Q.5 Total Asset growth of Virat Leasing Ltd?

Virat Leasing Ltd Total Asset growth is 0% for FY-2025, which is in line with its 5-year CAGR of 0%, indicating stable growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Virat Leasing Ltd?

Promoters hold 0.00% of the Virat Leasing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Virat Leasing Ltd vs Industry Peers?

Virat Leasing Ltd AUM CAGR is 0%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Virat Leasing Ltd vs industry peers

Virat Leasing Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-32.48	15.95
PPOP%	-	4.54
RoA%	-1.9	1.45

Q.3 Operating efficiency of Virat Leasing Ltd vs industry peers?

Virat Leasing Ltd ROCE (0.25) is below the industry median of (4.4); while the current ROE (-0.3) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-32.48	15.95
PPOP%	-	4.54
RoA%	-1.9	1.45
ROCE%	-1.6	4.4
ROE%	-1.9	2.7

Valuation & price assessment

Q.1 Stock return of Virat Leasing Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 52.73% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	52.7%	102.6%	45.7%

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	-	165.57	28.96
Price to Book	8.85	0.99	1.11
Price to Sales	152.88	20.26	9.10
EV to EBITDA	-209.98	27.46	11.77

Q.4 Valuation ratios of Virat Leasing Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 8.85% is higher than its historical median of 0.99%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Virat Leasing Ltd return on invested capital (ROIC) is -1.66% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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