Why is Virinchi Ltd ?
1
Weak Long Term Fundamental Strength with a -11.08% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.30
- The company has been able to generate a Return on Equity (avg) of 2.11% signifying low profitability per unit of shareholders funds
2
Flat results in Dec 25
- ROCE(HY) Lowest at 3.79%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 5.60 cr
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.34 times
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.49% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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 Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Virinchi for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Virinchi
-28.49%
-0.62
45.83%
Sensex
7.07%
0.61
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.22%
EBIT Growth (5y)
-11.08%
EBIT to Interest (avg)
1.30
Debt to EBITDA (avg)
2.79
Net Debt to Equity (avg)
0.63
Sales to Capital Employed (avg)
0.48
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
19.91%
Institutional Holding
0.05%
ROCE (avg)
7.07%
ROE (avg)
2.11%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
26
Price to Book Value
0.47
EV to EBIT
22.25
EV to EBITDA
6.42
EV to Capital Employed
0.68
EV to Sales
1.77
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.96%
ROE (Latest)
-2.99%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
9What is working for the Company
PAT(Q)
At Rs 1.66 cr has Grown at 148.2% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.27 times
PBT LESS OI(Q)
Highest at Rs 3.77 cr.
-4What is not working for the Company
ROCE(HY)
Lowest at 3.79%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5.60 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.34 times
Loading Valuation Snapshot...
Here's what is working for Virinchi
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.77 cr has Grown at 203.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -3.64 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1.66 cr has Grown at 148.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -3.45 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.27 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 3.77 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Virinchi
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5.60 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 3.34 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






