Why is VL E-Governance & IT Solutions 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 -4.29
- The company has reported losses. Due to this company has reported negative ROCE
2
Flat results in Sep 25
- PAT(Q) At Rs -0.52 cr has Fallen at -243.4% (vs previous 4Q average)
- OPERATING CF(Y) Lowest at Rs -59.23 Cr
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -88.00%, its profits have risen by 90% ; the PEG ratio of the company is 10.9
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.72% over the previous quarter and collectively hold 7.62% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Below par performance in long term as well as near term
- Along with generating -88.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is VL E-Governance for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
VL E-Governance
-88.0%
-1.73
51.00%
Sensex
7.07%
0.61
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
-71.45%
EBIT Growth (5y)
34.84%
EBIT to Interest (avg)
-4.29
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
0.29
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
7.62%
ROCE (avg)
-6.01%
ROE (avg)
0.13%
Valuation Key Factors 
Factor
Value
P/E Ratio
1250
Industry P/E
26
Price to Book Value
3.27
EV to EBIT
-80.05
EV to EBITDA
-84.71
EV to Capital Employed
3.50
EV to Sales
4.60
PEG Ratio
10.87
Dividend Yield
NA
ROCE (Latest)
-4.38%
ROE (Latest)
0.26%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 26.84 times
-10What is not working for the Company
NET SALES(Latest six months)
At Rs 7.73 cr has Grown at -66.68%
PAT(Latest six months)
At Rs -1.23 cr has Grown at -66.68%
Loading Valuation Snapshot...
Here's what is working for VL E-Governance
Debtors Turnover Ratio- Half Yearly
Highest at 26.84 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for VL E-Governance
Net Sales - Latest six months
At Rs 7.73 cr has Grown at -66.68%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs -1.23 cr has Grown at -66.68%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)






