Check Before You Invest : Virtuoso Optoelectronics Ltd

Snapshot

Q.1 Which industry/sub-sector does Virtuoso Optoelectronics Ltd belong to?

Virtuoso Optoelectronics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Virtuoso Optoelectronics Ltd a good quality company?

Virtuoso Optoelectronics Ltd is a weak quality company, based on a inconsistent 7-year financial track record.

Q.3 Is Virtuoso Optoelectronics Ltd undervalued or overvalued?

Virtuoso Optoelectronics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Virtuoso Optoelectronics Ltd a good buy now?

Virtuoso Optoelectronics 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 Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd revenue growth is 31.3% for FY-2025, which is below its 5-year CAGR of 59.19%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Return on capital employed is 12.64% for FY-2025, which is below its 5-year historical median of 17.65%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Return on Asset is 2.65%, which is below its 5-year historical median of 3.04%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Return on equity is 6% for FY-2025, which is below its 5-year historical median of 13.52%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Cash conversion cycle is 47 days, below its 5-year historical median of 59 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	1.31	1.68
ROE	6	13.52
ROCE	12.64	17.65
Cash Conversion Cycle	47 days	59 days

Q.6 Gross Profit margin of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is below its 5-year median of 5.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.97% for FY-2025, which is below its 5-year median of 9.92% indicating decreasing margins.

Q.8 Net Profit Margin of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Net Profit Margin is 2.03% for FY-2025, is in line with with its 5-year median of 1.97%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.1	5.4
Operating Profit Margin	7.97	9.92
Net Profit Margin	2.03	1.97

Q.9 Debt to Equity ratio of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Debt-to-Equity ratio is 0.61, which is above with the industry average of 0.51, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Virtuoso Optoelectronics Ltd?

Virtuoso Optoelectronics Ltd Debt to cash flow from operations is 5.4, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Virtuoso Optoelectronics Ltd?

Promoters hold 49.74% of the Virtuoso Optoelectronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Virtuoso Optoelectronics Ltd vs industry peers?

Virtuoso Optoelectronics Ltd revenue CAGR is 59.19%, compared to the industry median CAGR of 16.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	31.3	17
Gross Profit Growth	6.1	27.6
Operating Profit Growth	9.8	NAN
Net Profit Growth	40	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.31	1.06
ROE	6	10.12
ROCE	12.64	13.84
Cash Conversion Cycle (days)	46.82	104

Valuation & price assessment

Q.1 Stock return of Virtuoso Optoelectronics Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 18.58% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	18.6%	-31.9%

Q.3 Valuation ratios of Virtuoso Optoelectronics Ltd vs historical?

The current P/E is similar 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	84.74	84.19	37.99
Price to Book	3	5.25	3.99
Price to Sales	1.72	1.80	2.75
EV to EBITDA	22.95	21.29	18.70

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