Board Change • Jun 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Non-Executive Non-Independent Director Kalpesh Acharekar was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Sep 26
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₹824.2m (US$9.86m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (₹824.2m market cap, or US$9.86m). Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.2% average weekly change). New Risk • Aug 06
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₹971.0m market cap, or US$11.6m). New Risk • May 28
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₹828.2m (US$9.96m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Market cap is less than US$10m (₹828.2m market cap, or US$9.96m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Aankondiging • May 26
Varanium Cloud Limited Announces Resignation of Nidhi Jain as Independent Director Varanium Cloud Limited announced that Ms. NIDHI JAIN, Independent Director of the Company, has submitted her resignation due to personal reasons and unavoidable situations. Buy Or Sell Opportunity • Apr 15
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 57% to ₹51.30. The fair value is estimated to be ₹69.88, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 110% over the last 3 years. Earnings per share has grown by 94%. Buy Or Sell Opportunity • Mar 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 49% to ₹53.80. The fair value is estimated to be ₹68.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 110% over the last 3 years. Earnings per share has grown by 94%. Reported Earnings • Jan 20
Third quarter 2024 earnings released: EPS: ₹21.81 (vs ₹7.36 in 3Q 2023) Third quarter 2024 results: EPS: ₹21.81 (up from ₹7.36 in 3Q 2023). Revenue: ₹4.02b (up 267% from 3Q 2023). Net income: ₹876.8m (up 196% from 3Q 2023). Profit margin: 22% (down from 27% in 3Q 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹130, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 44x in the Software industry in India. Total loss to shareholders of 59% over the past year. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹126, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 38x in the Software industry in India. Total loss to shareholders of 16% over the past year. Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₹118, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 37x in the Software industry in India. Total returns to shareholders of 25% over the past year. New Risk • Oct 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.5% average weekly change). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (20% net profit margin). Market cap is less than US$100m (₹7.70b market cap, or US$92.5m). Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₹192, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 34x in the Software industry in India. Total returns to shareholders of 372% over the past year. Upcoming Dividend • Sep 08
Upcoming dividend of ₹3.50 per share at 3.8% yield Eligible shareholders must have bought the stock before 15 September 2023. Payment date: 13 October 2023. Payout ratio is a comfortable 38% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Indian dividend payers (1.3%). Higher than average of industry peers (1.5%). Aankondiging • Aug 24
Varanium Cloud Limited, Annual General Meeting, Sep 15, 2023 Varanium Cloud Limited, Annual General Meeting, Sep 15, 2023, at 16:00 Indian Standard Time. Agenda: To consider ADOPTION OF AUDITED FINANCIAL STATEMENTS; To consider DECLARATION OF DIVIDEND; To consider RE-APPOINTMENT OF A DIRECTOR. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₹155, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 32x in the Software industry in India. Upcoming Dividend • Jul 28
Upcoming dividend of ₹1.50 per share at 1.3% yield Eligible shareholders must have bought the stock before 04 August 2023. Payment date: 17 August 2023. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (1.6%). New Risk • Jul 24
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 20% Last year net profit margin: 38% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.1% average weekly change). Profit margins are more than 30% lower than last year (20% net profit margin). Market cap is less than US$100m (₹5.92b market cap, or US$72.2m). Reported Earnings • Jul 22
First quarter 2024 earnings released: EPS: ₹10.12 (vs ₹3.28 in 1Q 2023) First quarter 2024 results: EPS: ₹10.12 (up from ₹3.28 in 1Q 2023). Revenue: ₹1.71b (up 176% from 1Q 2023). Net income: ₹406.9m (up 209% from 1Q 2023). Profit margin: 24% (up from 21% in 1Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₹157, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 31x in the Software industry in India. Reported Earnings • Apr 30
Full year 2023 earnings released: EPS: ₹82.03 (vs ₹13.23 in FY 2022) Full year 2023 results: EPS: ₹82.03 (up from ₹13.23 in FY 2022). Revenue: ₹3.83b (up ₹3.48b from FY 2022). Net income: ₹854.6m (up ₹770.6m from FY 2022). Profit margin: 22% (down from 24% in FY 2022). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹705, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 29x in the Software industry in India. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹758, the stock trades at a trailing P/E ratio of 15.2x. Average trailing P/E is 25x in the Software industry in India. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₹1,091, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 26x in the Software industry in India. Aankondiging • Feb 16
Varanium Cloud Limited (NSEI:CLOUD) agreed to acquire Fastway Transmissions Private Limited for INR 26.8 billion. Varanium Cloud Limited (NSEI:CLOUD) agreed to acquire Fastway Transmissions Private Limited for INR 26.8 billion on February 15, 2023. The consideration will be paid in cash. Fastway Transmissions Private generated a turnover of INR 11.6 billion in F.Y. 2021-2022. The Board of Directors of Varanium Cloud approved the transaction. The transaction remains subject to execution of the Share Purchase Agreement and other related definitive documents. The acquisition is expected to be completed before September 30, 2023. Upcoming Dividend • Jan 27
Upcoming dividend of ₹2.00 per share at 0.2% yield Eligible shareholders must have bought the stock before 03 February 2023. Payment date: 17 February 2023. Trailing yield: 0.2%. Lower than top quartile of Indian dividend payers (1.6%). Lower than average of industry peers (1.8%). Reported Earnings • Jan 23
Third quarter 2023 earnings released Third quarter 2023 results: EPS: ₹29.43. Net income: ₹295.8m (up ₹295.8m from 3Q 2022). Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment improved over the past week After last week's 18% share price gain to ₹991, the stock trades at a trailing P/E ratio of 28.7x. Average trailing P/E is 26x in the IT industry in India. Valuation Update With 7 Day Price Move • Dec 14
Investor sentiment improved over the past week After last week's 28% share price gain to ₹896, the stock trades at a trailing P/E ratio of 25.9x. Average trailing P/E is 26x in the IT industry in India. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improved over the past week After last week's 24% share price gain to ₹493, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 24x in the IT industry in India. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Chairman & MD Harshawardhan Sabale is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 74% share price gain to ₹285, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 24x in the IT industry in India. Aankondiging • Oct 23
Varanium Cloud Limited Approves Interim Dividend for the Financial Year 2022-23 Varanium Cloud Limited announced that at the board meeting held on October 21, 2022, the company approved the Interim Dividend of INR 1/- per equity share each of the company for the Financial Year 2022-23. Reported Earnings • Oct 23
First half 2023 earnings released First half 2023 results: Net income: ₹263.8m (up ₹263.8m from 1H 2022). Board Change • Sep 28
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Chairman & MD Harshawardhan Sabale is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors.