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MoneyWorks4Me

Check Before You Invest : VVIP Infratech Ltd

BSE: 544219 NSE: ISIN: INE0MNP01016
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does VVIP Infratech Ltd belong to?
VVIP Infratech Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is VVIP Infratech Ltd a good quality company?
VVIP Infratech Ltd is a average quality company, based on a somewhat consistent 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 VVIP Infratech Ltd undervalued or overvalued?
VVIP Infratech Ltd appears Fair, as its key valuation ratios are in line with 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 10.72 17.70
Price to Book 1.62 2.79
Price to Sales 0.93 1.66
EV to EBITDA 4.86 11.66
Q.4 Is VVIP Infratech Ltd a good buy now?
VVIP Infratech 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.

Q.1 Operating Profit Margin of VVIP Infratech Ltd?
VVIP Infratech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.07% for FY-2025, which is above its 5-year median of 9.49% indicating increasing margins.

Q.2 Net Profit Margin of VVIP Infratech Ltd?
VVIP Infratech Ltd Net Profit Margin is 13.55% for FY-2025, is above its 5-year median of 5.6%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 20.3 9
Operating Profit Margin (%) 21.07 9.49
Net Profit Margin (%) 13.55 5.6

B: Does the business utilize capital efficiently?

Q.3 Return on Asset of VVIP Infratech Ltd?
VVIP Infratech Ltd Return on Asset is 12.47%, which is above its 5-year historical median of 4.63%, indicating improved asset utilization efficiency.

Q.4 Return on capital employed (ROCE) of VVIP Infratech Ltd?
VVIP Infratech Ltd Return on capital employed is 35.09% for FY-2025, which is above its 5-year historical median of 15.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.5 Return on Equity (ROE) of VVIP Infratech Ltd?
VVIP Infratech Ltd Return on equity is 32.49% for FY-2025, which is above its 5-year historical median of 15.15%, indicating the business is making better use of its shareholders capital.

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

Q.6 Debt to Equity ratio of VVIP Infratech Ltd?
VVIP Infratech Ltd Debt-to-Equity ratio is 0.48, which is above the industry average of 0.39, indicating higher debt levels in the industry.

Q.7 Debt to cash flow from operations of VVIP Infratech Ltd?
VVIP Infratech Ltd Debt to cash flow from operations is -1.49, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of VVIP Infratech Ltd?

Q.1 Promoter shareholding and pledge status of VVIP Infratech Ltd?
Promoters hold 68.61% of the VVIP Infratech Ltd, with 31.96% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does VVIP Infratech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of VVIP Infratech Ltd vs industry peers?
VVIP Infratech Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -46.3 -
Gross Profit Growth (%) 158.6 14.9
Operating Profit Growth (%) 143.8 15.8
Net Profit Growth (%) 150 20.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.92 0.84
ROE (%) 32.49 8.97
ROCE (%) 35.09 12.99
Cash Conversion Cycle (days) 160.18 51

Valuation & price assessment

Q.1 Stock return of VVIP Infratech Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -11.91% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -11.9%
Q.2 Valuation ratios of VVIP Infratech Ltd vs historical?
The current P/E ratio of 10.72 is lower than its historical median of 17.70, 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 10.72 17.70 19.01
Price to Book 1.62 2.79 1.74
Price to Sales 0.93 1.66 1.37
EV to EBITDA 4.86 11.66 10.76

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