Veritas (India) Ltd () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chandrima Mercan

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Veritas (India)

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S T C

Yamuna Syndicate

Arisinfra Solu.

Sunrise Efficie.

Balgopal Commer.

Shiv Aum Steels Ltd

Why is Veritas (India) Ltd ?

Poor Management Efficiency with a low ROE of 4.90%

The company has been able to generate a Return on Equity (avg) of 4.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -6.48% of over the last 5 years

The company has declared negative results for the last 5 consecutive quarters

The company has declared negative results in Sep 24 after 6 consecutive negative quarters
OPERATING CF(Y) Lowest at Rs -10.54 Cr
PAT(Q) At Rs 0.60 cr has Fallen at -97.3% (vs previous 4Q average)
ROCE(HY) Lowest at 2.72%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -79.66% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Veritas (India) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Veritas (India)

-79.66%

-3.14

25.35%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.72%

EBIT Growth (5y)

-6.48%

EBIT to Interest (avg)

5.20

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.13

Tax Ratio

0.37%

Dividend Payout Ratio

0.12%

Pledged Shares

Institutional Holding

9.84%

ROCE (avg)

5.37%

ROE (avg)

4.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.19

EV to EBIT

8.55

EV to EBITDA

5.87

EV to Capital Employed

0.25

EV to Sales

0.19

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

2.95%

ROE (Latest)

1.95%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-22What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -10.54 Cr

PAT(Q)

At Rs 0.60 cr has Fallen at -97.3% (vs previous 4Q average

ROCE(HY)

Lowest at 2.72%

PBDIT(Q)

Lowest at Rs 15.63 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 1.55%

PBT LESS OI(Q)

Lowest at Rs 0.93 cr.

Loading Valuation Snapshot...

Here's what is not working for Veritas (India)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.93 cr has Fallen at -95.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 20.77 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 0.60 cr has Fallen at -97.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 22.41 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -10.54 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 15.63 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 1.55%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 0.93 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)