Vindhya Telelinks Ltd (VINDHYATEL) 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

Valiant Commun.

Sterlite Tech.

Vindhya Telelink

Optiemus Infra

Suyog Telematics

HFCL

ADC India

Birla Cable

GTL Infra.

Tejas Networks

Pace Digitek

Why is Vindhya Telelinks Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.52 times

Poor long term growth as Operating profit has grown by an annual rate 6.05% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.52 times
The company has been able to generate a Return on Equity (avg) of 6.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 6.05% of over the last 5 years

Flat results in Sep 25

OPERATING PROFIT TO INTEREST (Q) Lowest at 1.89 times
DEBT-EQUITY RATIO(HY) Highest at 0.33 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.18 times

Below par performance in long term as well as near term

Along with generating -25.99% 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 Telecom - Equipment & Accessories)

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

Is Vindhya Telelink for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vindhya Telelink

-25.47%

-0.66

39.46%

Sensex

4.44%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.32%

EBIT Growth (5y)

6.05%

EBIT to Interest (avg)

2.73

Debt to EBITDA (avg)

3.41

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.63

Tax Ratio

24.89%

Dividend Payout Ratio

6.29%

Pledged Shares

Institutional Holding

9.72%

ROCE (avg)

5.13%

ROE (avg)

6.31%

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

0.42

EV to EBIT

11.90

EV to EBITDA

11.01

EV to Capital Employed

0.56

EV to Sales

0.76

PEG Ratio

0.43

Dividend Yield

1.06%

ROCE (Latest)

4.71%

ROE (Latest)

6.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

15What is working for the Company

PAT(Latest six months)

At Rs 117.74 cr has Grown at 118.81%

PBT LESS OI(Q)

At Rs 65.59 cr has Grown at 270.56%

OPERATING PROFIT TO NET SALES(Q)

Highest at 7.53%

-10What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.89 times

DEBT-EQUITY RATIO(HY)

Highest at 0.33 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.18 times

INTEREST(Q)

Highest at Rs 38.14 cr

Loading Valuation Snapshot...

Here's what is working for Vindhya Telelink

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 65.59 cr has Grown at 270.56%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 59.12 cr has Grown at 142.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 7.53%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for Vindhya Telelink

Operating Profit to Interest - Quarterly

Lowest at 1.89 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 38.14 cr

in the last five quarters and Increased by 19.75 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.33 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 2.18 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio