BSE:512175

Stock Analysis Report

Vama Industries

Executive Summary

Vama Industries Limited provides IT services and consulting, engineering, and IT infrastructure solutions in India and internationally.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 512175's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

512175

0.6%

IN Electronic

0.5%

IN Market


1 Year Return

-18.7%

512175

17.8%

IN Electronic

5.6%

IN Market

Return vs Industry: 512175 underperformed the Indian Electronic industry which returned 17.8% over the past year.

Return vs Market: 512175 underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

512175IndustryMarket
7 Day-7.8%0.6%0.5%
30 Day-20.5%-2.3%2.1%
90 Day-33.7%16.8%10.4%
1 Year-18.5%-18.7%18.7%17.8%7.6%5.6%
3 Year-50.1%-50.8%101.0%95.5%37.0%29.9%
5 Year55.1%51.6%71.3%65.1%39.6%27.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 512175 (₹7.58) is trading above our estimate of fair value (₹2.61)

Significantly Below Fair Value: 512175 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 512175 is poor value based on its PE Ratio (24.7x) compared to the Electronic industry average (11x).

PE vs Market: 512175 is poor value based on its PE Ratio (24.7x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 512175's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 512175 is overvalued based on its PB Ratio (2x) compared to the IN Electronic industry average (0.7x).


Next Steps

Future Growth

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

17.4%

Forecasted Tech 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 Vama Industries 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

  • Take a look at our analysis of 512175’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Vama Industries competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Vama Industries performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 512175 has high quality earnings.

Growing Profit Margin: 512175 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 512175's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: 512175 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 512175 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (19.7%).


Return on Equity

High ROE: 512175's Return on Equity (7.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vama Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 512175's short term assets (₹421.4M) exceeds its short term liabilities (₹284.4M)

Long Term Liabilities: 512175's short term assets (₹421.4M) exceeds its long term liabilities (3.7M)


Debt to Equity History and Analysis

Debt Level: 512175's debt to equity ratio (40.5%) is considered high.

Reducing Debt: 512175's debt to equity ratio has increased from 39.6% to 40.5% over the past 5 years.

Debt Coverage: 512175's debt is well covered by operating cash flow (36.2%).

Interest Coverage: 512175's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: 512175 has a high level of physical assets or inventory.

Debt Coverage by Assets: 512175's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

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

0.26%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 512175's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 512175's dividend (0.26%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).


Stability and Growth of Payments

Stable Dividend: 512175 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 512175 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 512175 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 512175'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 Vama Industries's salary, the management and board of directors tenure and is there insider trading?

9.6yrs

Average board tenure


CEO

Vijay Raju (56yo)

14.6yrs

Tenure

₹1,980,000

Compensation

Mr. Vegesna Atchyuta Rama Raju, also known as Vijay, has been the Chairman and Managing Director of Vama Industries Limited since April 2005. Mr. Raju is in the business of polymers for about more than a d ...


CEO Compensation Analysis

Compensation vs Market: Vijay's total compensation ($USD27.60K) is about average for companies of similar size in the Indian market ($USD33.45K).

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


Board Age and Tenure

9.6yrs

Average Tenure

53yo

Average Age

Experienced Board: 512175's board of directors are considered experienced (9.6 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 not been meaningfully diluted in the past year.


Management Team

  • Vijay Raju (56yo)

    Chairman & MD

    • Tenure: 14.6yrs
    • Compensation: ₹1.98m
  • Oshadhi Chirala (52yo)

    Manager of Administration

    • Tenure: 0yrs
    • Compensation: ₹240.00k
  • Vegesna Raju (52yo)

    Executive Director

    • Tenure: 16.4yrs
    • Compensation: ₹1.80m
  • Gavireddy Siva (39yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹1.06m
  • T. Chandramouli (53yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: ₹2.10m
  • M. Kalyan Varma (36yo)

    Senior Manager of Global Sales

    • Tenure: 0yrs
  • N. Venkatesh (34yo)

    Accounts Manager

    • Tenure: 0yrs
  • Vandana Modani

    Company Secretary & Compliance Officer

    • Tenure: 1yrs
    • Compensation: ₹372.45k
  • T. Harish (38yo)

    Head of HPCC

    • Tenure: 0yrs

Board Members

  • Vijay Raju (56yo)

    Chairman & MD

    • Tenure: 14.6yrs
    • Compensation: ₹1.98m
  • Kallepalli Vara Raju (54yo)

    Non-Executive Independent Director

    • Tenure: 15.5yrs
  • Vegesna Raju (52yo)

    Executive Director

    • Tenure: 16.4yrs
    • Compensation: ₹1.80m
  • Rama Rambatla (33yo)

    Non-Executive Director

    • Tenure: 4.7yrs
  • Vitakula Srinivas (58yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
  • Kakumanu Krishna Rao (49yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs

Company Information

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


Key Information

  • Name: Vama Industries Limited
  • Ticker: 512175
  • Exchange: BSE
  • Founded: 1985
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: ₹394.050m
  • Shares outstanding: 52.54m
  • Website: https://www.vamaind.com

Number of Employees


Location

  • Vama Industries Limited
  • Lakshmi Towers
  • 8-2-248/1/7/78/12, 13, Block-A
  • Hyderabad
  • Andhra Pradesh
  • 500082
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512175BSE (Mumbai Stock Exchange)INR2ININRNo data
512175BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2005

Biography

Vama Industries Limited provides IT services and consulting, engineering, and IT infrastructure solutions in India and internationally. The company offers IT services and consulting solutions, including so ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 12:32
End of Day Share Price2019/11/21 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.