BSE:532372

Stock Analysis Report

Executive Summary

Virinchi Limited provides information technology (IT) products and services in North America, Europe, the Middle East, and the Asia Pacific.

Snowflake

Adequate balance sheet with proven track record.

Share Price & News

How has Virinchi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532372's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

532372

-1.3%

IN Software

-0.3%

IN Market


1 Year Return

-58.4%

532372

-25.7%

IN Software

3.8%

IN Market

Return vs Industry: 532372 underperformed the Indian Software industry which returned -25.7% over the past year.

Return vs Market: 532372 underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

532372IndustryMarket
7 Day-9.3%-1.3%-0.3%
30 Day-3.2%-3.0%2.7%
90 Day-24.0%-2.3%7.6%
1 Year-58.4%-58.4%-22.2%-25.7%5.9%3.8%
3 Year-38.5%-38.5%-2.2%-10.3%35.4%28.4%
5 Year87.0%87.0%4.4%-10.6%38.1%25.2%

Price Volatility Vs. Market

How volatile is Virinchi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Virinchi undervalued compared to its fair value and its price relative to the market?

2.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532372 (₹36.65) is trading above our estimate of fair value (₹10.07)

Significantly Below Fair Value: 532372 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532372 is good value based on its PE Ratio (2.1x) compared to the Software industry average (12.1x).

PE vs Market: 532372 is good value based on its PE Ratio (2.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532372's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532372 is good value based on its PB Ratio (0.3x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Virinchi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532372's forecast earnings growth (2.5% per year) is below the savings rate (7.6%).

Earnings vs Market: 532372's earnings (2.5% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 532372's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 532372's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 532372's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 532372's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Virinchi performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532372 has high quality earnings.

Growing Profit Margin: 532372's current net profit margins (13.9%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: 532372's earnings have grown significantly by 40.6% per year over the past 5 years.

Accelerating Growth: 532372's earnings growth over the past year (22.5%) is below its 5-year average (40.6% per year).

Earnings vs Industry: 532372 earnings growth over the past year (22.5%) exceeded the Software industry -4.8%.


Return on Equity

High ROE: 532372's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Virinchi's financial position?


Financial Position Analysis

Short Term Liabilities: 532372's short term assets (₹1.4B) exceeds its short term liabilities (₹963.7M)

Long Term Liabilities: 532372's short term assets (1.4B) exceeds its long term liabilities (880.3M)


Debt to Equity History and Analysis

Debt Level: 532372's debt to equity ratio (41.2%) is considered high

Reducing Debt: 532372's debt to equity ratio has increased from 39.3% to 41.2% over the past 5 years.

Debt Coverage: 532372's debt is well covered by operating cash flow (51.7%).

Interest Coverage: 532372's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 532372 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532372's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Virinchi's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532372's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532372's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532372's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532372's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532372 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532372's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Virinchi's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Satyajeet Prasad 0

5.3yrs

Tenure

0

Mr. Satyajeet Prasad, IIT KGP C& IIM L, has been Chief Executive Officer of Virinchi Limited since August 30, 2014. Mr. Prasad has been President of KSoft Systems, Inc. since November 10, 2016. Mr. Prasad  ...


Management Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 532372's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

45yo

Average Age

Experienced Board: 532372's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Management Team

  • Vish Kompella (51yo)

    Founder

    • Tenure: 4.5yrs
    • Compensation: ₹1.80m
  • Kolli Tagore

    Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹3.85m
  • M. Priya (45yo)

    Chairperson & CFO

    • Tenure: 9.3yrs
    • Compensation: ₹4.20m
  • Sri Kompella (40yo)

    Whole Time Director

    • Tenure: 6.3yrs
    • Compensation: ₹3.15m
  • Satyajeet Prasad

    Chief Executive Officer

    • Tenure: 5.3yrs
  • Vishal Ranjan

    Group Head of New Businesses

    • Tenure: 0yrs
  • Neeraj Kumar

    Head of US Business Development

    • Tenure: 0yrs
  • Amar Pendyala

    Chief Operating Officer

    • Tenure: 2.5yrs
  • M. V. Rao (51yo)

    Group President & Executive Director

    • Tenure: 1yrs
    • Compensation: ₹4.24m
  • Y. Ravi

    President of New Revenues

    • Tenure: 1.2yrs

Board Members

  • Vish Kompella (51yo)

    Founder

    • Tenure: 4.5yrs
    • Compensation: ₹1.80m
  • Madu Ramam (59yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: ₹175.00k
  • M. Priya (45yo)

    Chairperson & CFO

    • Tenure: 9.3yrs
    • Compensation: ₹4.20m
  • Sri Kompella (40yo)

    Whole Time Director

    • Tenure: 6.3yrs
    • Compensation: ₹3.15m
  • Kunda N. Reddy (37yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: ₹120.00k
  • M. V. Rao (51yo)

    Group President & Executive Director

    • Tenure: 1yrs
    • Compensation: ₹4.24m
  • Suresh Juthuga (42yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Virinchi Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virinchi Limited
  • Ticker: 532372
  • Exchange: BSE
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹1.226b
  • Shares outstanding: 33.45m
  • Website: https://www.virinchi.com

Location

  • Virinchi Limited
  • 8-2-672/5 & 6, IIyas Mohammed Khan Estate
  • 4th Floor
  • Hyderabad
  • Andhra Pradesh
  • 500034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532372BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004

Biography

Virinchi Limited provides information technology (IT) products and services in North America, Europe, the Middle East, and the Asia Pacific. It operates through Development of Computer Software and Service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:32
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.