VTM (532893)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• ROCE of 19.49% suggests decent operating efficiency on capital employed, even though ROE is weak.
• Current price ₹69.88 is much closer to the 52-week low of ₹53.51 than the high of ₹103.33, reducing some downside expectations.
• Latest quarter sales of ₹100 Cr imply reasonable scale; if annualised, sales would be roughly ₹400 Cr against a market cap of ₹296 Cr.
• Book value per share of ₹30.28 provides a reference floor, though price is 2.31x book.
• Dividend yield of 1.03% indicates the company is still returning some cash to shareholders.

Concerns

• Profit growth has collapsed by 80.55%, and latest quarterly profit is just ₹3 Cr on ₹100 Cr sales—a thin 3% net margin.
• P/E of 36.60 is expensive for a business with declining earnings and negative sales growth of -3.45%.
• Piotroski F-Score of 3/9 points to weak financial health and deteriorating fundamentals.
• ROE of 8.12% is far below the ROCE of 19.49% and does not justify a P/B of 2.31.

AI Analysis

At first glance, VTM’s price of ₹69.88 looks reasonable only if you ignore the numbers behind it. A market cap of ₹296 Cr against book value of ₹30.28 per share means I am paying 2.31 times net worth for a business that earned only about 8.12% on that equity. In Buffett’s world, a wonderful business produces high returns on equity; this one does not. The profit collapse of 80.55% is a red flag. The latest quarter shows ₹100 Cr of sales but just ₹3 Cr of net profit—a 3% margin. At a P/E of 36.60, the market is pricing in a sharp recovery that may or may not come. Piotroski’s score of 3 out of 9 confirms the financial stress: this is not a company getting healthier on operating or balance-sheet metrics. What do I like? ROCE is 19.49%, which suggests that the capital employed still earns a decent operating return; the price is much closer to the 52-week low of ₹53.51 than the high of ₹103.33, so some optimism has been removed; and the dividend yield of 1.03%, while small, shows cash is still being returned. But I don’t have promoter holding or debt/equity data, so I cannot judge management quality or leverage risk. In Graham’s framework, a bargain must have a margin of safety. Here I see falling sales, collapsed profits, and a low F-score. The only sensible way to approach VTM is as a turnaround candidate: wait for several quarters of improving profit margins, rising sales, and better returns on equity. Until earnings recover and the price gives me more cushion, I would watch from the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer