Current Rating Overview
MarketsMOJO’s 'Sell' rating for Vakrangee Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised on 06 February 2025, when the Mojo Score dropped from 57 (Hold) to 37 (Sell), reflecting a significant reassessment of the company’s prospects.
How Vakrangee Ltd Looks Today: Quality Assessment
As of 12 January 2026, Vakrangee Ltd’s quality grade is assessed as average. The company has struggled with long-term growth, with net sales declining at an annualised rate of -13.16% over the past five years. Operating profit has also contracted by -10.74% annually during the same period. These figures highlight challenges in sustaining revenue and profitability growth, which weigh on the company’s overall quality profile.
Return on Equity (ROE) stands at a modest 4.6%, indicating limited efficiency in generating shareholder returns from equity capital. This relatively low ROE, combined with shrinking sales and profits in the long term, suggests that the company faces structural or operational hurdles that have yet to be fully addressed.
Valuation Perspective
Vakrangee Ltd is currently considered expensive based on valuation metrics. The stock trades at a Price to Book (P/B) ratio of 4, which is high relative to its historical averages and peer group valuations. Despite this, the stock price is trading at a discount compared to the average historical valuations of its peers, indicating some market scepticism.
The PEG ratio of 1.6 reflects a moderate premium on the company’s earnings growth potential. Notably, while the stock has delivered a negative return of -78.38% over the past year, the company’s profits have risen by 57.9% during the same period. This divergence suggests that the market may be pricing in risks or uncertainties beyond current earnings growth, such as sustainability of profits or broader sector challenges.
Financial Trend and Returns
The financial grade for Vakrangee Ltd is positive, indicating some encouraging signs in recent financial performance. However, this is contrasted by the stock’s poor returns across multiple time frames. As of 12 January 2026, the stock has declined by -78.38% over the past year, underperforming the BSE500 index over the last three years, one year, and three months.
Shorter-term returns also reflect weakness, with losses of -2.75% in one day, -5.94% over one week, and -6.06% in one month. The six-month return is down by -25.45%, and the year-to-date return stands at -4.98%. These figures underscore the stock’s sustained underperformance and heightened volatility, which may deter risk-averse investors.
Technical Outlook
The technical grade for Vakrangee Ltd is bearish, signalling negative momentum and downward pressure on the stock price. This technical weakness aligns with the recent price declines and suggests limited near-term upside potential. Investors relying on technical analysis may view the current trend as unfavourable for initiating new positions.
Institutional Investor Sentiment
Institutional participation in Vakrangee Ltd has been declining, with a reduction of -1.92% in institutional holdings over the previous quarter. Currently, institutional investors hold 5.29% of the company’s shares. Given that institutional investors typically possess greater resources and analytical capabilities, their reduced stake may reflect concerns about the company’s fundamentals or outlook.
Implications for Investors
The 'Sell' rating from MarketsMOJO suggests that investors should exercise caution with Vakrangee Ltd. The combination of average quality, expensive valuation, positive yet insufficient financial trends, and bearish technical signals points to a stock that may face continued headwinds. While the company has shown some profit growth recently, the broader challenges in sales decline, poor returns, and waning institutional interest temper optimism.
For investors, this rating implies that the risk-reward profile of Vakrangee Ltd is currently unfavourable. Those holding the stock may consider reviewing their positions, while prospective buyers might wait for clearer signs of recovery or improved fundamentals before committing capital.
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Company Profile and Market Context
Vakrangee Ltd operates within the Computers - Software & Consulting sector and is classified as a microcap company. The sector is characterised by rapid technological change and competitive pressures, which can amplify volatility for smaller firms. The company’s current market capitalisation reflects its microcap status, which often entails higher risk and lower liquidity compared to larger peers.
Given the sector dynamics and the company’s recent performance, investors should carefully weigh the risks associated with Vakrangee Ltd. The combination of weak long-term growth, expensive valuation, and negative technical signals suggests that the stock may continue to face challenges in regaining investor confidence.
Summary
In summary, Vakrangee Ltd’s 'Sell' rating by MarketsMOJO, last updated on 06 February 2025, remains justified based on the company’s current fundamentals as of 12 January 2026. The stock’s average quality, expensive valuation, positive but limited financial trends, and bearish technical outlook collectively indicate a cautious investment stance. Investors should consider these factors carefully when making portfolio decisions involving Vakrangee Ltd.
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