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Check Before You Invest : Viram Suvarn Ltd

BSE: 540252 NSE: ISIN: INE607V01028
  |   Sector:  BFSI   |   Industry:  Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Viram Suvarn Ltd belong to?
Viram Suvarn Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.
Q.2 Is Viram Suvarn Ltd a good quality company?
Viram Suvarn 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 Viram Suvarn Ltd undervalued or overvalued?
Viram Suvarn 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 5-year
Historic Median
Price to Earnings 17.92 33.74
Price to Book 2.03 3.24
Price to Sales 4.96 3.98
EV to EBITDA 13.9 25.68
Q.4 Is Viram Suvarn Ltd a good buy now?
Viram Suvarn 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

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 Viram Suvarn Ltd?
Viram Suvarn Ltd revenue growth is 37% for FY-2025, which is above its 5-year CAGR of 5.82%, indicating faster growth.

Q.2 Gross Profit margin of Viram Suvarn Ltd?
Viram Suvarn Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.1% for FY-2025, which is in line with its 5-year median of 17.2%, indicating stable margins.

Q.3 Operating Profit Margin of Viram Suvarn Ltd?
Viram Suvarn Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.06% for FY-2025, which is above its 5-year median of 14.62% indicating increasing margins.

Q.4 Net Profit Margin of Viram Suvarn Ltd?
Viram Suvarn Ltd Net Profit Margin is 12.87% for FY-2025, is in line with its 5-year median of 12.87%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.1 17.2
Operating Profit Margin (%) 17.06 14.62
Net Profit Margin (%) 12.87 12.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Viram Suvarn Ltd?
Viram Suvarn Ltd Return on Asset is 13.6%, which is in line with its 5-year historical median of 13.6%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Viram Suvarn Ltd?
Viram Suvarn Ltd Return on capital employed is 19% for FY-2025, which is in line with its 5-year historical median of 19%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Viram Suvarn Ltd?
Viram Suvarn Ltd Return on equity is 14.4% for FY-2025, which is in line with its 5-year historical median of 14.4%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Viram Suvarn Ltd?
Viram Suvarn Ltd Cash conversion cycle is 126 days, below its 5-year historical median of 139 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 (x) 1.06 1.06
ROE (%) 14.4 14.4
ROCE (%) 19 19
Cash Conversion Cycle 126 days 139 days

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

Q.9 Debt to Equity ratio of Viram Suvarn Ltd?
Viram Suvarn Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Viram Suvarn Ltd?
Viram Suvarn Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Viram Suvarn Ltd?

Q.1 Promoter shareholding and pledge status of Viram Suvarn Ltd?
Promoters hold 65.01% of the Viram Suvarn Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Viram Suvarn Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Viram Suvarn Ltd vs industry peers?
Viram Suvarn Ltd revenue CAGR is 5.82%, compared to the industry median CAGR of 23.54%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 37 23.5
Gross Profit Growth (%) 66.7 41.8
Operating Profit Growth (%) 66.7 43.1
Net Profit Growth (%) 50 40.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.06 0.34
ROE (%) 14.4 6
ROCE (%) 19 9.75
Cash Conversion Cycle (days) 126.45 8

Valuation & price assessment

Q.1 Stock return of Viram Suvarn Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 14.42% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 14.4% 6.8% 29.9%
Q.2 Valuation ratios of Viram Suvarn Ltd vs historical?
The current P/E ratio of 17.92 is lower than its historical median of 33.74, indicating that the stock is trading below its historical average valuation.
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 17.92 33.74 40.56
Price to Book 2.03 3.24 4.06
Price to Sales 4.96 3.98 9.32
EV to EBITDA 13.9 25.68 25.78

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