Vakrangee Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Vakrangee Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at present. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.

Quality Assessment

As of 23 January 2026, Vakrangee Ltd holds an average quality grade. This reflects a mixed performance in operational efficiency and profitability metrics. The company’s return on equity (ROE) stands at a modest 4.6%, indicating limited effectiveness in generating profits from shareholders’ equity. Additionally, the company has experienced poor long-term growth, with net sales declining at an annual rate of -13.16% and operating profit shrinking by -10.74% over the past five years. These figures suggest challenges in sustaining growth momentum and operational scalability.

Valuation Considerations

Vakrangee Ltd is currently classified as expensive based on valuation metrics. The stock trades at a price-to-book (P/B) ratio of 3.7, which is relatively high given the company’s financial performance. While this valuation is at a discount compared to its peers’ historical averages, it remains elevated in absolute terms. The price-earnings-to-growth (PEG) ratio of 1.5 further indicates that the market may be pricing in growth expectations that are not fully supported by recent financial trends. Investors should be cautious as the premium valuation may not be justified by the company’s fundamentals.

Financial Trend Analysis

The financial trend for Vakrangee Ltd shows a positive grade, reflecting some improvement in profitability despite broader challenges. Notably, the company’s profits have risen by 57.9% over the past year, a significant rebound amid a difficult operating environment. However, this improvement in earnings has not translated into positive stock returns. As of 23 January 2026, the stock has delivered a steep negative return of -76.99% over the last year, highlighting a disconnect between earnings growth and market sentiment. This divergence may be due to concerns about sustainability of profits or broader sector headwinds.

Technical Outlook

The technical grade for Vakrangee Ltd is bearish, signalling downward momentum in the stock price. Recent price movements show consistent declines, with the stock falling -1.83% in the last trading day and -13.43% over the past month. Longer-term trends are also negative, with losses of -18.88% over three months and -30.33% over six months. This technical weakness suggests that market participants remain pessimistic about the stock’s near-term prospects, reinforcing the 'Sell' rating.

Stock Performance and Market Position

Vakrangee Ltd is classified as a microcap company within the Computers - Software & Consulting sector. Despite its size, domestic mutual funds hold no stake in the company, which may reflect a lack of confidence from institutional investors who typically conduct thorough due diligence. The stock has underperformed key benchmarks such as the BSE500 index over multiple time frames, including the last three years, one year, and three months. This underperformance, combined with the company’s operational challenges and valuation concerns, supports the cautious investment stance.

Investor Implications

For investors, the 'Sell' rating on Vakrangee Ltd suggests prudence. The average quality, expensive valuation, and bearish technical indicators imply elevated risk and limited upside potential in the near term. While the recent profit growth is a positive sign, it has not yet translated into improved market performance or investor confidence. Those holding the stock may consider reviewing their positions, while prospective investors should carefully weigh the risks before committing capital.

Summary of Key Metrics as of 23 January 2026

• Mojo Score: 37.0 (Sell grade)


• ROE: 4.6%


• Price to Book Value: 3.7


• PEG Ratio: 1.5


• 1-Year Stock Return: -76.99%


• 5-Year Net Sales Growth: -13.16% CAGR


• 5-Year Operating Profit Growth: -10.74% CAGR


• Technical Trend: Bearish

Contextualising the Rating in the Sector

Within the Computers - Software & Consulting sector, Vakrangee Ltd’s performance and valuation stand out as concerning. The sector typically features companies with robust growth trajectories and strong profitability metrics. Vakrangee’s negative sales growth and subdued ROE contrast sharply with sector averages, which tend to be higher. Furthermore, the stock’s valuation premium is not supported by commensurate earnings growth or market sentiment, placing it at a disadvantage relative to peers.

Long-Term Outlook and Risks

Looking ahead, the company faces several challenges that may impact its ability to reverse current trends. The persistent decline in net sales and operating profit over five years signals structural issues that require strategic intervention. The absence of institutional backing from domestic mutual funds may limit access to capital and reduce market confidence. Additionally, the bearish technical outlook suggests that any recovery in stock price may be slow and uncertain. Investors should monitor developments closely, particularly any changes in operational performance or sector dynamics.

Conclusion

In summary, Vakrangee Ltd’s 'Sell' rating by MarketsMOJO reflects a comprehensive evaluation of its current financial health, valuation, and market positioning as of 23 January 2026. While the company has shown some profit growth recently, the overall quality, expensive valuation, and negative technical signals warrant caution. Investors are advised to consider these factors carefully when making portfolio decisions involving this stock.

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