ScoreWhy is Virat Industries Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.69
- The company has been able to generate a Return on Equity (avg) of 4.47% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- NET SALES(Q) At Rs 5.10 cr has Fallen at -30.7% (vs previous 4Q average)
- PBDIT(Q) Lowest at Rs -0.36 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at -7.06%
3
With ROE of 3.8, it has a Very Expensive valuation with a 4.4 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 -21.44%, its profits have risen by 402% ; the PEG ratio of the company is 1.4
4
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
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -2.24% in the last 1 year, its fall in the stock was much higher with a return of -21.44%
Real-Time Research ReportHow 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 Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Virat Industries for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Virat Industries
-21.44%
-0.40
53.39%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.83%
EBIT Growth (5y)
-2.97%
EBIT to Interest (avg)
0.69
Debt to EBITDA (avg)
0.44
Net Debt to Equity (avg)
-0.88
Sales to Capital Employed (avg)
1.01
Tax Ratio
25.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.86%
ROE (avg)
4.47%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
118
Industry P/E
23
Price to Book Value
4.44
EV to EBIT
466.40
EV to EBITDA
466.40
EV to Capital Employed
28.77
EV to Sales
17.40
PEG Ratio
1.41
Dividend Yield
NA
ROCE (Latest)
2.78%
ROE (Latest)
3.77%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
PAT(Latest six months)
At Rs 2.23 cr has Grown at 643.33%
ROCE(HY)
Highest at 5.13%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 114.53 cr
-13What is not working for the Company
NET SALES(Q)
At Rs 5.10 cr has Fallen at -30.7% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs -0.36 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at -7.06%
PBT LESS OI(Q)
Lowest at Rs -0.47 cr.
NON-OPERATING INCOME(Q)
is 132.64 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Virat Industries
Profit After Tax (PAT) - Latest six months
At Rs 2.23 cr has Grown at 643.33%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 114.53 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Virat Industries
Net Sales - Quarterly
At Rs 5.10 cr has Fallen at -30.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 7.36 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 5.10 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -0.36 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at -7.06%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -0.47 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 132.64 % 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
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