Check Before You Invest : VMS TMT Ltd

Q: Which industry/sub-sector does VMS TMT Ltd belong to?

VMS TMT Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is VMS TMT Ltd a good quality company?

VMS TMT Ltd is a weak quality company, based on a inconsistent 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: Is VMS TMT Ltd undervalued or overvalued?

VMS TMT Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 15.3, Historic Median: 16.39. Price to Book, Current: 0.98, Historic Median: 1.07. Price to Sales, Current: 0.31, Historic Median: 0.33. EV to EBITDA, Current: 8.19, Historic Median: 8.54

Q: Is VMS TMT Ltd a good buy now?

VMS TMT 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

Q: Revenue growth of VMS TMT Ltd?

VMS TMT Ltd revenue growth is -11.8% for FY-2025, which is below its 3-year CAGR of 15.98%, indicating slower growth.

Q: Gross Profit margin of VMS TMT Ltd?

VMS TMT Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is above its 3-year median of 2.7%, indicating increasing margins.

Q: Operating Profit Margin of VMS TMT Ltd?

VMS TMT Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.12% for FY-2025, which is above its 3-year median of 4.75% indicating increasing margins.

Q: Net Profit Margin of VMS TMT Ltd?

VMS TMT Ltd Net Profit Margin is 2% for FY-2025, is above its 3-year median of 1.54%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 3.5, Historic Median: 2.7. Operating Profit Margin (%), Current: 6.12, Historic Median: 4.75. Net Profit Margin (%), Current: 2, Historic Median: 1.54

Q: Return on Asset of VMS TMT Ltd?

VMS TMT Ltd Return on Asset is 4.42%, which is in line with its 3-year historical median of 4.42%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of VMS TMT Ltd?

VMS TMT Ltd Return on capital employed is 14% for FY-2025, which is in line with its 3-year historical median of 14%. The current ROCE is in line with its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : VMS TMT Ltd

Snapshot

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

VMS TMT Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

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

VMS TMT Ltd is a weak quality company, based on a inconsistent 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 VMS TMT Ltd undervalued or overvalued?

VMS TMT Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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	3-year Historic Median
Price to Earnings	15.3	16.39
Price to Book	0.98	1.07
Price to Sales	0.31	0.33
EV to EBITDA	8.19	8.54

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

VMS TMT 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 VMS TMT Ltd?

VMS TMT Ltd revenue growth is -11.8% for FY-2025, which is below its 3-year CAGR of 15.98%, indicating slower growth.

Q.2 Gross Profit margin of VMS TMT Ltd?

VMS TMT Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is above its 3-year median of 2.7%, indicating increasing margins.

Q.3 Operating Profit Margin of VMS TMT Ltd?

VMS TMT Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.12% for FY-2025, which is above its 3-year median of 4.75% indicating increasing margins.

Q.4 Net Profit Margin of VMS TMT Ltd?

VMS TMT Ltd Net Profit Margin is 2% for FY-2025, is above its 3-year median of 1.54%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	3.5	2.7
Operating Profit Margin (%)	6.12	4.75
Net Profit Margin (%)	2	1.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of VMS TMT Ltd?

VMS TMT Ltd Return on Asset is 4.42%, which is in line with its 3-year historical median of 4.42%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of VMS TMT Ltd?

VMS TMT Ltd Return on capital employed is 14% for FY-2025, which is in line with its 3-year historical median of 14%. The current ROCE is in line with its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Q.7 Return on Equity (ROE) of VMS TMT Ltd?

VMS TMT Ltd Return on equity is 25.76% for FY-2025, which is in line with its 3-year historical median of 25.76%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of VMS TMT Ltd?

VMS TMT Ltd Cash conversion cycle is 58 days, above its 3-year historical median of 41 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	2.21	3.41
ROE (%)	25.76	25.76
ROCE (%)	14	14
Cash Conversion Cycle	58 days	41 days

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

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

VMS TMT Ltd Debt-to-Equity ratio is 3.77, which is above the industry average of 0.31, indicating higher debt levels in the industry.

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

VMS TMT Ltd Debt to cash flow from operations is -15.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of VMS TMT Ltd?

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

Promoters hold 67.18% of the VMS TMT Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does VMS TMT Ltd performance compare with that of its Peers?

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

VMS TMT Ltd revenue CAGR is 15.98%, compared to the industry median CAGR of 6.94%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-11.8	6.9
Gross Profit Growth (%)	17.4	10.1
Operating Profit Growth (%)	14.6	8.2
Net Profit Growth (%)	15.4	11.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	2.21	1.4
ROE (%)	25.76	9.64
ROCE (%)	14	12.04
Cash Conversion Cycle (days)	58.3	67

Valuation & price assessment

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

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of VMS TMT Ltd vs historical?

The current P/E ratio of 15.3 is lower than its historical median of 16.39, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	15.3	16.39	20.20
Price to Book	0.98	1.07	1.84
Price to Sales	0.31	0.33	0.91
EV to EBITDA	8.19	8.54	11.48

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Check Before You Invest : VMS TMT Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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