Vakrangee (VAKRANGEE)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹5.92 |
| Market Cap | ₹641.25 Cr |
| P/E Ratio | 74 |
| ROCE | 5.86% |
| ROE | 7.34% |
| Dividend Yield | 0% |
| Profit Growth | -33.3% |
| Debt/Equity | 0.02 |
| Sales Growth | -18.8% |
| Promoter Holding | 40.05% |
| 52-Week Range | ₹4.61 — ₹9.77 |
| Sector | IT - Services |
| Book Value | ₹2.1 |
Strengths
- Debt/Equity of 0.02 indicates a nearly debt-free balance sheet.
- Piotroski F-Score of 6/9 suggests reasonable financial health.
- Reported profit growth of 168.07% shows recent earnings momentum.
- Promoter holding of 40.05% provides some owner alignment.
- Current price is closer to the lower half of the 52-week range of ₹4.61-₹9.77.
Concerns
- Sales are declining at -11.46%, while the latest quarter shows only ₹60 Cr revenue and ₹3 Cr net profit.
- Valuation is expensive at P/E of 60.16 and P/B of 4.74, leaving little margin of safety.
- Return on equity of 7.34% and ROCE of 5.86% are weak for a company valued like a high-growth franchise.
- No dividend yield means shareholders are entirely dependent on uncertain price appreciation.
AI Analysis
The first thing I notice about Vakrangee is that the market is pricing it as a growth story, but the underlying numbers do not match. A P/E of 60.16 and a P/B of 4.74 mean I am paying ₹4.74 for every ₹1 of book value, and book value itself is only ₹1.48. Graham taught me to buy with a margin of safety; here, I see little of it. Sales are down 11.46%, and the latest quarter shows revenue of only ₹60 crore and net profit of ₹3 crore. Yes, reported profit is up 168.07%, but when the top line is shrinking, I must question whether this is a genuine turnaround or just a low-base rebound. The balance sheet is one bright spot: debt/equity of 0.02 is almost debt-free, and the Piotroski score of 6/9 suggests financial health is not terrible. Yet the returns on capital are weak—ROE is just 7.34% and ROCE 5.86%. As a shareholder, I am not being paid to wait: there is zero dividend yield. Promoter holding of 40.05% is decent, but alignment alone cannot justify a rich multiple. In Buffett’s language, this is not a wonderful business at a fair price; it is an average business at an optimistic price. I would need several quarters of improving sales and durable margins before I could call it a disciplined investment. For now, I prefer to remain on the sidelines and let the market prove the story to me.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer