MoneyWorks4Me

Check Before You Invest : VR Infraspace Ltd

BSE: 0 NSE: VR ISIN: INE0QQM01017
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does VR Infraspace Ltd belong to?
VR Infraspace Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is VR Infraspace Ltd a good quality company?
VR Infraspace Ltd is a quality company, based on a 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 VR Infraspace Ltd undervalued or overvalued?
VR Infraspace Ltd appears 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 21.7 131.15
Price to Book 2.11 4.70
Price to Sales 1.14 20.58
EV to EBITDA 8.39 86.92
Q.4 Is VR Infraspace Ltd a good buy now?
VR Infraspace 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 VR Infraspace Ltd?
VR Infraspace Ltd revenue growth is 135.1% for FY-2026, which is above its 5-year CAGR of 40.87%, indicating faster growth.

Q.2 Gross Profit margin of VR Infraspace Ltd?
VR Infraspace Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2026, which is below its 5-year median of 13.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of VR Infraspace Ltd?
VR Infraspace Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.96% for FY-2026, which is below its 5-year median of 15.86% indicating decreasing margins.

Q.4 Net Profit Margin of VR Infraspace Ltd?
VR Infraspace Ltd Net Profit Margin is 7.91% for FY-2026, is below its 5-year median of 9.5%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.1 13.5
Operating Profit Margin (%) 12.96 15.86
Net Profit Margin (%) 7.91 9.5

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of VR Infraspace Ltd?
VR Infraspace Ltd Return on Asset is 5.5%, which is above its 5-year historical median of 4.15%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of VR Infraspace Ltd?
VR Infraspace Ltd Return on capital employed is 21.1% for FY-2026, which is above its 5-year historical median of 13.57%. 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 VR Infraspace Ltd?
VR Infraspace Ltd Return on equity is 15.4% for FY-2026, which is above its 5-year historical median of 10.6%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of VR Infraspace Ltd?
VR Infraspace Ltd Cash conversion cycle is 255 days, below its 5-year historical median of 322 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) 0.69 0.33
ROE (%) 15.4 10.6
ROCE (%) 21.1 13.57
Cash Conversion Cycle 255 days 322 days

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

Q.9 Debt to Equity ratio of VR Infraspace Ltd?
VR Infraspace Ltd Debt-to-Equity ratio is 0.79, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of VR Infraspace Ltd?
VR Infraspace Ltd Debt to cash flow from operations is -17.92, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of VR Infraspace Ltd?

Q.1 Promoter shareholding and pledge status of VR Infraspace Ltd?
Promoters hold 72.97% of the VR Infraspace Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of VR Infraspace Ltd vs industry peers?
VR Infraspace Ltd revenue CAGR is 40.87%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 135.1 0
Gross Profit Growth (%) 92.3 21.5
Operating Profit Growth (%) 92.2 11.8
Net Profit Growth (%) 95.7 24.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.69 0.1
ROE (%) 15.4 1.65
ROCE (%) 21.1 4.15
Cash Conversion Cycle (days) 254.63 415

Valuation & price assessment

Q.1 Stock return of VR Infraspace Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -52.15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -52.2%
Q.2 Valuation ratios of VR Infraspace Ltd vs historical?
The current P/E ratio of 21.7 is lower than its historical median of 131.15, 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 21.7 131.15 28.14
Price to Book 2.11 4.70 1.54
Price to Sales 1.14 20.58 4.70
EV to EBITDA 8.39 86.92 14.15

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