Is VL E-Governance overvalued or undervalued?

As of May 27, 2025, VL E-Governance is considered overvalued and risky, with a PE ratio of 498.40, an EV to EBITDA ratio of -732.86, and a disappointing year-to-date return of -66.36%, significantly higher than its peers like Tata Consultancy Services and Infosys.

As of 27 May 2025, the valuation grade for VL E-Governance has moved from very expensive to risky. The company is currently assessed as overvalued, particularly highlighted by its PE ratio of 498.40, which starkly contrasts with peers like Tata Consultancy Services Ltd. and Infosys Ltd., which have PE ratios of 25.23 and 24.32, respectively. Additionally, the EV to EBITDA ratio stands at -732.86, indicating significant operational challenges, while the EV to Sales ratio is 23.89, further emphasizing the high valuation relative to sales.<BR><BR>In comparison to its peers, VL E-Governance's PEG ratio of 4.24 also suggests that the stock is not only expensive but may not justify its growth expectations when compared to companies like HCL Technologies Ltd. with a PEG of 2.37. The company's recent stock performance has been disappointing, with a year-to-date return of -66.36% compared to a 5.54% gain in the Sensex, reinforcing the notion that it is overvalued in the current market context.

Has VL E-Governance declared dividend?

No Dividend History Available

Who are the peers of the VL E-Governance?

Peers of VL E-Governance include TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Onward Technologies, Alphalogic Tech, Cybertech Systems, and DigiSpice Tech. VL E-Governance has below-average management risk and a 1-year return of 7.05%, higher than Alphalogic Tech. but lower than HCL Technologies.

Peers: The peers of VL E-Governance are TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Onward Technolog, Alphalogic Tech., Cybertech Sys., and DigiSpice Tech.<BR><BR>Quality Snapshot: Excellent management risk is observed at TCS and Infosys, while Good management risk is found at Wipro, Tech Mahindra, Onward Technolog, and Cybertech Sys. Average management risk is noted at Alphalogic Tech., and Below Average management risk is present at VL E-Governance, DigiSpice Tech., and Softtech Enginee. Growth is rated as Good for TCS and Infosys, Average for Alphalogic Tech., Below Average for Wipro, Tech Mahindra, Onward Technolog, HCL Technologies, and DigiSpice Tech., and Below Average for VL E-Governance. Capital Structure is Excellent for TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Onward Technolog, and Cybertech Sys., Average for Softtech Enginee, and Below Average for VL E-Governance and DigiSpice Tech.<BR><BR>Return Snapshot: The peer with the highest 1-year return is HCL Technologies at 24.62%, while the peer with the lowest is Alphalogic Tech. at -54.66%. VL E-Governance has a 1-year return of 7.05%, which is higher than Alphalogic Tech. but lower than HCL Technologies. Additionally, the six-month return is negative for TCS, Wipro, Tech Mahindra, Onward Technolog, Alphalogic Tech., and DigiSpice Tech.

Is VL E-Governance technically bullish or bearish?

As of July 4, 2025, VL E-Governance's trend has shifted to mildly bearish, influenced by daily moving averages and weekly Dow Theory, despite some mixed signals from MACD, KST, and Bollinger Bands.

As of 4 July 2025, the technical trend for VL E-Governance has changed from mildly bullish to mildly bearish. The current stance is mildly bearish, driven by the daily moving averages indicating a bearish trend and the weekly Dow Theory also showing a mildly bearish signal. While the weekly MACD and KST are mildly bullish, they are overshadowed by the overall bearish indicators. The Bollinger Bands present a mixed view with a bullish weekly signal but a mildly bearish monthly signal. The lack of clear signals from the RSI and OBV further supports the neutral to bearish outlook.

What does VL E-Governance do?

VL E-Governance & IT Solutions Ltd is a Micro Cap company that serves as a Systems Integrator for e-Governance projects, incorporated in 2016. As of March 2025, it reported net sales of 50 Cr and a net profit loss of 25,194 Cr.

Overview:<BR>VL E-Governance & IT Solutions Ltd operates as a Systems Integrator and end-to-end service provider for various e-Governance projects within the Computers - Software & Consulting industry, classified as a Micro Cap company.<BR><BR>History:<BR>The company was incorporated in 2016 and was previously known as Vakrangee Logistics Ltd. The latest quarterly results reported are for March 2025, showcasing the company's financial performance.<BR><BR>Financial Snapshot:<BR>Net Sales: 50 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: -25,194 Cr (Quarterly Results - Mar 2025) <BR>Market cap: INR 530 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 387.00 <BR>Industry P/E: 29 <BR>Dividend Yield: 0.00% <BR>Debt Equity: 0.02 <BR>Return on Equity: 0.06% <BR>Price to Book: 0.22 <BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

Who are the top shareholders of the VL E-Governance?

The top shareholders of VL E-Governance include Vakrangee Holdings Private Limited with 22.74%, Life Insurance Corporation of India at 6.07%, and individual investors collectively owning 43.49%. Additionally, 43 foreign institutional investors hold 2.14%, with no pledged promoter holdings or mutual fund involvement.

The top shareholders of VL E-Governance include Vakrangee Holdings Private Limited, which holds the highest promoter stake at 22.74%. Additionally, Life Insurance Corporation of India is the largest public shareholder with a holding of 6.07%. The company also has a significant portion of individual investors, who collectively own 43.49% of the shares. Furthermore, 43 foreign institutional investors (FIIs) hold a combined 2.14% of the company. There are no pledged promoter holdings or mutual fund schemes currently involved with VL E-Governance.

How big is VL E-Governance?

As of 24th July, VL E-Governance & IT Solutions Ltd has a market capitalization of 540.00 Cr and reported net sales of 30.68 Cr with a net loss of 2517.04 Cr over the last four quarters. Shareholder's funds are valued at 2,448.42 Cr, with total assets of 2,517.14 Cr as of March 2024.

As of 24th July, <BR><BR>Market Cap: VL E-Governance & IT Solutions Ltd has a market capitalization of 540.00 Cr, classified as a Micro Cap.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 30.68 Cr, while the sum of Net Profit for the same period shows a loss of 2517.04 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the balance sheet is March 2024. Shareholder's Funds are valued at 2,448.42 Cr, and Total Assets amount to 2,517.14 Cr.

When is the next results date for VL E-Governance?

The next results date for VL E-Governance is 31 October 2025.

The next results date for VL E-Governance is scheduled for 31 October 2025.

Are VL E-Governance latest results good or bad?

The latest results for VL E-Governance are concerning, showing a net loss of ₹0.52 crores in Q2 FY26, a 175.36% decline from the previous quarter's profit, and a 60.56% drop in revenue. The company's negative operating margin and book value further indicate significant financial distress and raise questions about its future viability.

The latest results for VL E-Governance are quite concerning. In Q2 FY26, the company reported a net loss of ₹0.52 crores, which is a significant deterioration of 175.36% compared to a profit of ₹0.69 crores in the previous quarter. Revenue also fell sharply by 60.56%, dropping to ₹3.25 crores from ₹8.24 crores in Q1 FY26. This decline in revenue is alarming, especially considering it represents a year-on-year decrease of 59.32% from ₹7.99 crores in Q2 FY25.<BR><BR>The operating margin has plunged into negative territory at -16.62%, down from a positive 4.37% in the previous quarter, indicating severe operational distress. Additionally, the company's financial health is further reflected in its negative book value of ₹4.60 per share, suggesting that it owes more than it owns.<BR><BR>Overall, the results indicate a troubling trend for VL E-Governance, characterized by significant revenue declines, operational losses, and a deteriorating balance sheet. This performance raises serious questions about the company's viability and future prospects.

How has been the historical performance of VL E-Governance?

VL E-Governance has experienced significant financial decline, with net sales dropping from 729.53 crore in March 2023 to 30.69 crore in March 2025, resulting in substantial losses and negative equity. The company's operating profit turned negative, and reserves fell dramatically, indicating severe financial deterioration.

Answer:<BR>The historical performance of VL E-Governance has shown significant fluctuations over the years, particularly in its financial metrics.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, VL E-Governance reported net sales of 30.69 crore, a decrease from 729.53 crore in March 2023, indicating a substantial decline in revenue. The total operating income mirrored this trend, falling to 30.69 crore from 729.53 crore in the previous year. The company's total expenditure, excluding depreciation, rose slightly to 30.95 crore from 30.08 crore in March 2024. Operating profit (PBDIT) turned negative at -0.26 crore, contrasting sharply with a profit of 8.13 crore in March 2023. The profit before tax also reflected this downturn, plummeting to -2,517.01 crore from a profit of 8.13 crore the previous year. Consequently, the profit after tax was reported at -2,517.03 crore, a stark decline from 5.89 crore in March 2023. The company's reserves fell dramatically to -62.75 crore in March 2025 from 2,512.40 crore in March 2023, indicating a severe deterioration in financial health. The book value per share also declined to -4.6 from 247.13, further illustrating the company's challenging position. Cash flow from operating activities was negative at -59.00 crore, while cash flow from financing activities showed a positive inflow of 63.00 crore, resulting in a net cash inflow of 2.00 crore for the year. Overall, VL E-Governance's financial performance has deteriorated significantly over the past few years, marked by declining revenues, increasing losses, and a negative equity position.

Should I buy, sell or hold VL E-Governance?

Which are the latest news on VL E-Governance?

Why is VL E-Governance falling/rising?

As of 04-Dec, VL E-Governance & IT Solutions Ltd's stock price is at 21.87, reflecting a decline of -1.8%. The company is facing severe financial challenges, with significant losses and a year-to-date drop of -88.08%, leading to a bearish trend in its stock performance.

As of 04-Dec, VL E-Governance & IT Solutions Ltd's stock price is falling, currently at 21.87, reflecting a change of -0.4 (-1.8%). The stock has been on a downward trend, having underperformed its sector by -3.14% today and experiencing consecutive falls over the last two days, resulting in a total decline of -5.04% during this period. <BR><BR>The stock's performance over various time frames has been significantly poor, with a year-to-date decline of -88.08% and a one-year drop of -86.59%. This stark underperformance is contrasted by the Sensex, which has shown positive returns of +9.12% year-to-date and +5.32% over the past year. Additionally, VL E-Governance is trading below its moving averages across all time frames, indicating a bearish trend.<BR><BR>Financially, the company is facing substantial challenges, including operating losses and a weak ability to service its debt, as evidenced by a poor EBIT to Interest ratio of -4.29. The latest quarterly results showed a significant drop in profit after tax (PAT) of -243.4% compared to the previous four-quarter average, alongside the lowest operating cash flow recorded at Rs -59.23 Cr. These factors contribute to a negative EBITDA and a high PEG ratio of 17.2, indicating that the stock is trading at a risky valuation compared to its historical performance.<BR><BR>Overall, the combination of poor financial results, significant losses, and underperformance relative to benchmarks has led to the continued decline in VL E-Governance's stock price.