Vindhya Telelink (VINDHYATEL)
CyclicalFairStock Score: 48/100 — MIXED
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,401.6 |
| Market Cap | ₹2,846.1 Cr |
| P/E Ratio | 12.15 |
| ROCE | 7.64% |
| ROE | 5.19% |
| Dividend Yield | 0.25% |
| Profit Growth | 76.5% |
| Debt/Equity | 0.34 |
| Sales Growth | -20.8% |
| Promoter Holding | 43.54% |
| 52-Week Range | ₹963.9 — ₹2,950.6 |
| Sector | Telecom - Services |
| Book Value | ₹3,585.23 |
Strengths
- Price-to-book of 1.12 is modest; market cap of ₹1,243 Cr is just above book value per share of ₹1,160.
- Debt/equity of 0.33 provides a reasonable financial cushion despite operational stress.
- Promoter holding of 43.54% aligns insider interests with minority shareholders.
- Dividend yield of 1.53% offers some income, though sustainability needs monitoring.
Concerns
- Profit growth of -102.66% and latest quarterly net loss of ₹1 Cr show no current earnings power.
- Sales declined 30.91%, indicating a sharp demand contraction in telecom infrastructure.
- ROE of 5.19% and ROCE of 7.64% are too low to create meaningful shareholder value.
- Piotroski F-Score of 3/9 and FairStock Score of 23/100 suggest deteriorating financial health; the low P/E of 5.48 is misleading.
AI Analysis
Let me judge this as a business, not a ticker. Vindhya Telelink trades at ₹1,294.60, only 1.12 times book value of ₹1,160. That seems like a margin of safety, but the earning power underneath is crumbling. Sales have fallen 30.91%, profit is down 102.66%, and the latest quarter posted a ₹1 crore loss on ₹717 crore of revenue. A P/E of 5.48 is not a bargain when earnings are collapsing; Graham would ask me to find normal earning power, and I cannot. The telecom infrastructure industry can be lumpy, but the financials also look weak: ROE is just 5.19%, ROCE 7.64%, and the Piotroski F-Score of 3/9 plus FairStock Score of 23/100 point to stress. The balance sheet is not reckless, with debt/equity of only 0.33, and promoter holding of 43.54% provides some alignment. The 1.53% dividend yield is small comfort if cash must be conserved. I do not see a durable competitive moat in these numbers; this looks like a cyclical business in a downcycle, not a wonderful compounder. I would need signs of stabilizing sales, positive quarterly profit, and consistent return on capital before calling this a genuine bargain. Until then, the low price-to-book may be an invitation to a value trap, not a margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer