Check Before You Invest : VMS Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does VMS Industries Ltd belong to?

VMS Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ship Building segment.

Q.2 Is VMS Industries Ltd a good quality company?

VMS Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is VMS Industries Ltd undervalued or overvalued?

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

Q.4 Is VMS Industries Ltd a good buy now?

VMS Industries 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 VMS Industries Ltd?

VMS Industries Ltd revenue growth is 8.3% for FY-2025, which is below its 5-year CAGR of 10.34%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of VMS Industries Ltd?

VMS Industries Ltd Return on capital employed is 12.18% for FY-2025, which is above its 5-year historical median of 5.33%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of VMS Industries Ltd?

VMS Industries Ltd Return on Asset is 4.2%, which is above its 5-year historical median of 2.25%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of VMS Industries Ltd?

VMS Industries Ltd Return on equity is 8.5% for FY-2025, which is above its 5-year historical median of 4.42%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of VMS Industries Ltd?

VMS Industries Ltd Cash conversion cycle is 19 days, below its 5-year historical median of 43 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.78	1.33
ROE	8.5	4.42
ROCE	12.18	5.33
Cash Conversion Cycle	19 days	43 days

Q.6 Gross Profit margin of VMS Industries Ltd?

VMS Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 5-year median of 2.4%, indicating increasing margins.

Q.7 Operating Profit Margin of VMS Industries Ltd?

VMS Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.74% for FY-2025, which is above its 5-year median of 0.8% indicating increasing margins.

Q.8 Net Profit Margin of VMS Industries Ltd?

VMS Industries Ltd Net Profit Margin is 2.36% for FY-2025, is above with its 5-year median of 1.78%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.4	2.4
Operating Profit Margin	2.74	0.8
Net Profit Margin	2.36	1.78

Q.9 Debt to Equity ratio of VMS Industries Ltd?

VMS Industries Ltd Debt-to-Equity ratio is 0.15, which is lower with the industry average of 2.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of VMS Industries Ltd?

VMS Industries Ltd Debt to cash flow from operations is -0.32, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of VMS Industries Ltd?

Promoters hold 38.10% of the VMS Industries Ltd, with 47.63% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of VMS Industries Ltd vs industry peers?

VMS Industries Ltd revenue CAGR is 10.34%, compared to the industry median CAGR of 19.16%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.3	19.2
Gross Profit Growth	9.7	40.4
Operating Profit Growth	30.3	42.1
Net Profit Growth	7.6	41.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.78	0.82
ROE	8.5	4.12
ROCE	12.18	7.58
Cash Conversion Cycle (days)	19.06	76

Valuation & price assessment

Q.1 Stock return of VMS Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	3.8%	25.1%	23.2%	-7.4%

Q.3 Valuation ratios of VMS Industries 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	9.34	16.37	32.41
Price to Book	0.61	0.62	6.51
Price to Sales	0.37	0.23	4.99
EV to EBITDA	4.07	7.44	12.82

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