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Check Before You Invest : Vertoz Ltd

BSE: 0 NSE: VERTOZ ISIN: INE188Y01031
  |   Sector:  Media   |   Industry:  Advertising & Media

Snapshot

Q.1 Which industry/sub-sector does Vertoz Ltd belong to?
Vertoz Ltd belongs to the Media sector, operating specifically within the Advertising & Media segment.
Q.2 Is Vertoz Ltd a good quality company?
Vertoz 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 Vertoz Ltd undervalued or overvalued?
Vertoz 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 57.95 73.53
Price to Book 2.8 4.81
Price to Sales 5.21 8.76
EV to EBITDA 29.57 48.44
Q.4 Is Vertoz Ltd a good buy now?
Vertoz 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 Vertoz Ltd?
Vertoz Ltd revenue growth is 37.6% for FY-2025, which is above its 5-year CAGR of 30.21%, indicating faster growth.

Q.2 Gross Profit margin of Vertoz Ltd?
Vertoz Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.8% for FY-2025, which is in line with its 5-year median of 16.8%, indicating stable margins.

Q.3 Operating Profit Margin of Vertoz Ltd?
Vertoz Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.76% for FY-2025, which is in line with its 5-year median of 13.8% indicating stable margins.

Q.4 Net Profit Margin of Vertoz Ltd?
Vertoz Ltd Net Profit Margin is 8.93% for FY-2025, is in line with its 5-year median of 8.93%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.8 16.8
Operating Profit Margin (%) 13.76 13.8
Net Profit Margin (%) 8.93 8.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vertoz Ltd?
Vertoz Ltd Return on Asset is 3.4%, which is below its 5-year historical median of 5.73%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vertoz Ltd?
Vertoz Ltd Return on capital employed is 6.05% for FY-2025, which is below its 5-year historical median of 11.99%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Vertoz Ltd?
Vertoz Ltd Return on equity is 4.11% for FY-2025, which is below its 5-year historical median of 9.87%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Vertoz Ltd?
Vertoz Ltd Cash conversion cycle is 219 days, above its 5-year historical median of 152 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.38 0.38
ROE (%) 4.11 9.87
ROCE (%) 6.05 11.99
Cash Conversion Cycle 219 days 152 days

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

Q.9 Debt to Equity ratio of Vertoz Ltd?
Vertoz Ltd Debt-to-Equity ratio is 0.11, which is lower the industry average of 0.16, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vertoz Ltd?
Vertoz Ltd Debt to cash flow from operations is -1.13, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vertoz Ltd?

Q.1 Promoter shareholding and pledge status of Vertoz Ltd?
Promoters hold 64.80% of the Vertoz Ltd, with 62.95% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Vertoz Ltd vs industry peers?
Vertoz Ltd revenue CAGR is 30.21%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 37.6 -
Gross Profit Growth (%) 150 25.6
Operating Profit Growth (%) 60 20.6
Net Profit Growth (%) 66.7 31.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.38 0.92
ROE (%) 4.11 8.74
ROCE (%) 6.05 12.1
Cash Conversion Cycle (days) 219 30

Valuation & price assessment

Q.1 Stock return of Vertoz Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -27.94% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -27.9% -42.2% 421.1%
Q.2 Valuation ratios of Vertoz Ltd vs historical?
The current P/E ratio of 57.95 is lower than its historical median of 73.53, 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 57.95 73.53 23.28
Price to Book 2.8 4.81 2.66
Price to Sales 5.21 8.76 2.73
EV to EBITDA 29.57 48.44 11.36

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