Virat Industries 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

Virat Industries

Anand Rayons

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Voith Paper

Sarla Performanc

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Rajapalayam Mill

AYM Syntex

Bizotic Commer.

Borana Weaves

Foce India

Why is Virat Industries Ltd ?

Poor Management Efficiency with a low ROE of 4.44%

The company has been able to generate a Return on Equity (avg) of 4.44% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 6.60% and Operating profit at 0.40% over the last 5 years

Positive results in Sep 25

PAT(Latest six months) Higher at Rs 2.70 cr
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 107.97 cr
PBDIT(Q) Highest at Rs 0.74 cr.

With ROE of 2.3, it has a Very Expensive valuation with a 6.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 30.96%, its profits have risen by 253% ; the PEG ratio of the company is 2.3

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

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Virat Industries should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Virat Industries for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Virat Industries

30.96%

0.67

46.35%

Sensex

4.67%

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)

6.60%

EBIT Growth (5y)

0.40%

EBIT to Interest (avg)

0.84

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

-0.84

Sales to Capital Employed (avg)

1.07

Tax Ratio

24.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.94%

ROE (avg)

4.44%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

271

Industry P/E

Price to Book Value

6.34

EV to EBIT

705.34

EV to EBITDA

443.61

EV to Capital Employed

34.58

EV to Sales

23.60

PEG Ratio

2.33

Dividend Yield

ROCE (Latest)

3.87%

ROE (Latest)

2.34%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

17What is working for the Company

PAT(Latest six months)

Higher at Rs 2.70 cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 107.97 cr

PBDIT(Q)

Highest at Rs 0.74 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.22%

PBT LESS OI(Q)

Highest at Rs 0.60 cr.

EPS(Q)

Highest at Rs 1.25

-3What is not working for the Company

NET SALES(Q)

At Rs 7.24 cr has Fallen at -15.4% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 75.10 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Virat Industries

Operating Profit (PBDIT) - Quarterly

Highest at Rs 0.74 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 10.22%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 0.60 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1.82 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.25

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 107.97 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Virat Industries

Net Sales - Quarterly

At Rs 7.24 cr has Fallen at -15.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 8.56 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 75.10 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT