In the latest quarter, Vedavaag Systems reported net sales at ₹21.62 crores, marking the lowest quarterly figure observed in recent periods. Profit before tax (PBT) less other income stood at ₹1.78 crores, showing a decline of 38.4% compared to the average of the preceding four quarters. Operating cash flow for the year registered at ₹0.05 crores, the lowest recorded in the company’s recent history. The profit after tax (PAT) over the last six months was ₹3.37 crores, reflecting a contraction of 29.35% relative to prior periods.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- Recently turned profitable
- Strong business fundamentals
- Pre-breakout opportunity
The company’s return on capital employed (ROCE) for the half-year period was recorded at 7.26%, the lowest in recent evaluations. Additionally, the debtors turnover ratio for the half-year stood at 2.02 times, indicating a slower collection cycle compared to historical norms. Dividend per share (DPS) for the year was ₹0.50, with a dividend payout ratio (DPR) of 17.20%, both figures representing the lowest levels in recent years.
Vedavaag Systems’ stock price closed at ₹31.59, down 5.59% on the day, with a 52-week high of ₹75.99 and a low of ₹29.75. The stock’s recent returns have lagged significantly behind the Sensex benchmark. Year-to-date, Vedavaag Systems has recorded a negative return of 51.47%, while the Sensex has gained 8.36%. Over the past year, the stock’s return was -53.46%, contrasting with the Sensex’s 9.48% gain. Even over a three-year horizon, Vedavaag Systems’ return of -37.20% falls short of the Sensex’s 37.31% appreciation. Longer-term returns over five and ten years show some positive figures for the company but remain well below the broader market’s performance.
Why settle for Vedavaag Systems .? SwitchER evaluates this Computers - Software & Consulting micro-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- Comprehensive evaluation done
- Superior opportunities identified
- Smart switching enabled
The recent adjustment in Vedavaag Systems’ financial trend parameter from flat to very negative signals a revision in its evaluation, reflecting challenges in sustaining revenue growth and margin stability. The contraction in operating cash flow and profitability metrics, alongside subdued returns relative to the Sensex, underscores the pressures faced by the company in the current market environment.
Investors analysing Vedavaag Systems should consider these financial developments in the context of the broader Computers - Software & Consulting sector, which continues to experience varied performance across its constituents. The company’s market capitalisation grade remains modest, and the recent day-to-day price movement indicates heightened volatility.
Overall, Vedavaag Systems’ latest quarterly performance highlights a period of financial strain, with key indicators reflecting a departure from previous trends. This adjustment in the company’s financial evaluation may influence investor sentiment and portfolio considerations in the near term.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
