NSEI:VAKRANGEE

Stock Analysis Report

Executive Summary

Vakrangee Limited, a technology company, provides banking, ATM, insurance, financial services, e-governance, e-commerce, and logistics services in India.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VAKRANGEE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

VAKRANGEE

-2.2%

IN IT

-1.4%

IN Market


1 Year Return

7.7%

VAKRANGEE

4.0%

IN IT

6.4%

IN Market

Return vs Industry: VAKRANGEE underperformed the Indian IT industry which returned 7.9% over the past year.

Return vs Market: VAKRANGEE underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

VAKRANGEEIndustryMarket
7 Day-3.4%-2.2%-1.4%
30 Day-13.0%-1.2%-3.3%
90 Day10.7%7.1%0.4%
1 Year8.5%7.7%6.7%4.0%8.4%6.4%
3 Year-71.7%-72.3%67.3%57.6%20.9%14.1%
5 Year-27.2%-29.0%52.8%38.7%30.7%18.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

100.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VAKRANGEE (₹43.6) is trading above our estimate of fair value (₹3.18)

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


Price To Earnings Ratio

PE vs Industry: VAKRANGEE is poor value based on its PE Ratio (99.8x) compared to the IT industry average (10.8x).

PE vs Market: VAKRANGEE is poor value based on its PE Ratio (99.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VAKRANGEE is overvalued based on its PB Ratio (1.7x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

9.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vakrangee has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Vakrangee performed over the past 5 years?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VAKRANGEE has high quality earnings.

Growing Profit Margin: VAKRANGEE's current net profit margins (8%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: VAKRANGEE's earnings have declined by -14.3% per year over the past 5 years.

Accelerating Growth: VAKRANGEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VAKRANGEE had negative earnings growth (-50.8%) over the past year, making it difficult to compare to the IT industry average (7.2%).


Return on Equity

High ROE: VAKRANGEE's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Vakrangee's financial position?


Financial Position Analysis

Short Term Liabilities: VAKRANGEE's short term assets (₹26.1B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: VAKRANGEE's short term assets (₹26.1B) exceed its long term liabilities (₹51.4M).


Debt to Equity History and Analysis

Debt Level: VAKRANGEE is debt free.

Reducing Debt: VAKRANGEE has no debt compared to 5 years ago when its debt to equity ratio was 56.1%.

Debt Coverage: VAKRANGEE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VAKRANGEE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: VAKRANGEE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VAKRANGEE's debt is covered by short term assets.


Next Steps

Dividend

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

0.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VAKRANGEE's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: VAKRANGEE's dividend (0.57%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: VAKRANGEE's dividend payments have been volatile in the past 10 years.

Growing Dividend: VAKRANGEE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.3%), VAKRANGEE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Dinesh Nandwana (56yo)

0.08yrs

Tenure

₹26,877,000

Compensation

Mr. Dinesh Nandwana, CA, has been Managing Director & Group CEO at Vakrangee Limited since January 24, 2020. He served as the Managing Director of Vakrangee Limited (Alternate Name: Vakrangee Softwares Ltd ...


CEO Compensation Analysis

Compensation vs Market: Dinesh's total compensation ($USD374.16K) is about average for companies of similar size in the Indian market ($USD407.20K).

Compensation vs Earnings: Dinesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dinesh Nandwana
MD, Group CEO & Executive Director0.08yrs₹26.88m6.42% 3.0b
Subhash Singhania
Chief Financial Officer3.8yrs₹5.76m0.000010% 4.6k
Mehul Raval
Company Secretary & Compliance Officer2.4yrs₹2.81m0.000070% 32.3k
Nishikant Hayatnagarkar
Director of R&D and Whole Time Director20.5yrs₹6.27m0.014% 6.5m
Gopal Bihani
COO & CFO of Retail0.8yrsno datano data
Sanjay Nandwana
Chief Technology Officer2yrs₹2.71mno data
Ammeet Sabarwal
Chief Corporate Communication Officer & Strategy0yrsno datano data
Sagar Kargutkar
Chief Marketing Officer1.1yrsno datano data
Satish Saundatti
Head of Client Consulting0yrsno datano data
Nitin Sharma
Head of Master Franchisee Marketing2.1yrs₹2.25mno data

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VAKRANGEE's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dinesh Nandwana
MD, Group CEO & Executive Director0.08yrs₹26.88m6.42% 3.0b
Nishikant Hayatnagarkar
Director of R&D and Whole Time Director20.5yrs₹6.27m0.014% 6.5m
Ramesh Joshi
Non-Executive Chairman0.08yrs₹330.00k0.000050% 23.0k
Sunil Agarwal
Non-Executive Independent Director17.7yrs₹150.00kno data
Babu Meena
Non-Executive Independent Director9.3yrs₹220.00k0.0032% 1.5m
Sujata Chattopadhyay
Non-Executive Independent Director4.9yrs₹300.00kno data
Avinash Vyas
Non-Executive Independent Director5.3yrs₹280.00kno data
Ranbir Datt
Nominee Director2yrs₹250.00kno data

7.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: VAKRANGEE's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Vakrangee Limited
  • Ticker: VAKRANGEE
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹46.084b
  • Shares outstanding: 1.06b
  • Website: https://vakrangee.in

Number of Employees


Location

  • Vakrangee Limited
  • Vakrangee Corporate House
  • Plot No. 93, Road No. 16
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511431BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2000
VAKRANGEENSEI (National Stock Exchange of India)YesEquity SharesININRJun 2000

Biography

Vakrangee Limited, a technology company, provides banking, ATM, insurance, financial services, e-governance, e-commerce, and logistics services in India. The company offers savings bank account opening, deposit in account, urban counter tatkal remittance, cash credit, term loans repayment, fixed deposit, retail loan, overdraft, micro pension, and SHG management services, as well as transaction deposit, withdrawal, A/C to A/C remittance, and tatkal remittance services; direct benefit transfer services; pension transactions; and life and non-life insurance products. It also provides utility collection services, including bill payments for electricity, telephone, mobile, and Mahanagar Gas; cess and tax collection services; recruitment application processing and grievance management services; and online registration and issuance of certificates for birth, death, and marriage. In addition, the company offers telecommunication services and products; direct-to-home services; and literacy-related services. Further, it provides Aadhaar Card enrolment services issued by the Government of India; electoral rolls enrolment services; and assistance in registration of marriages, societies, firms, and non-trading companies. Additionally, the company engages in the digitization of old records, automation of the Ministry's internal processes, computerization of payroll and administration functions, training of staff, building infrastructure, designing application software, and other services; and provision of procuring, commissioning, and maintaining the Smart Card Infrastructure. As of November 13, 2019, it had a total of approximately 8,500 Vakrangee Kendra outlets. The company was formerly known as Vakrangee Softwares Limited and changed its name to Vakrangee Limited in October 2013. Vakrangee Limited was founded in 1990 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:06
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.