Virinchi Ltd
It - Software | Small Cap
Health Score : 4.44Virinchi Ltd, operating in the IT & Software sector, demonstrates a mixed financial performance. The company shows strong asset and net income growth, coupled with high gross and operating profit margins, indicating efficient core operations. However, its liquidity position is concerning, and revenue growth is negative. The company's profitability metrics such as ROCE, ROE, and ROA are low, suggesting inefficient capital deployment. The company's solvency is good, with a low debt-to-equity ratio. Overall, Virinchi Ltd showcases potential through its asset growth and profitability margins but needs to address its liquidity and revenue challenges to ensure sustainable financial health.
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- Valuation MetricsNeutral
- Market Metrics
- Stock Reports
- Stock News
- Growth Ratio4.80
- Financial Ratio4.40
- Profitability Ratio4.40
- Efficiency Ratio2.50
- Coverage Ratio2.00
- Solvency Ratio9.09
- Liquidity Ratio0.00
- Peer Assessment
- Management AssessmentBalanced
- Risk AssessmentBalanced
- 1 HourNeutral
- 2 HoursNeutral
- 4 HoursNeutral
- 1 DayNeutral
- 1 WeekNeutral
- 1 MonthNeutral
Health Score : 4.44Virinchi Ltd, operating in the IT & Software sector, demonstrates a mixed financial performance. The company shows strong asset and net income growth, coupled with high gross and operating profit margins, indicating efficient core operations. However, its liquidity position is concerning, and revenue growth is negative. The company's profitability metrics such as ROCE, ROE, and ROA are low, suggesting inefficient capital deployment. The company's solvency is good, with a low debt-to-equity ratio. Overall, Virinchi Ltd showcases potential through its asset growth and profitability margins but needs to address its liquidity and revenue challenges to ensure sustainable financial health.
Overall Valuation Score
P/E RATIO (TTM)
-15.10
Industry Median
18.52
Small Cap Median
17.08
P/E RATIO
289.00
P/B RATIO
0.45
Industry Median
3.54
Small Cap Median
3.39
P/S RATIO
N/A
Industry Median
2.66
Small Cap Median
2.37
Others
PEG RATIO
-5.11
EV/EBITDA RATIO
2.15
The Calculations Shown Above Are Based on the Last Traded Price (LTP) of ₹20.23 as on Feb 20, 2026.
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Growth Score : 4.80The company exhibits mixed growth signals. While asset and net income growth are strong, revenue and operating profit growth are lagging. The strong growth in assets and net income suggests potential for future expansion and profitability. Sustaining this growth will depend on addressing the challenges in revenue and operating profit.
Revenue Growth RatePoorOperating Profit Growth RatePoorEarnings Per Share (EPS) GrowthPoorAsset Growth RateExcellentNet Income Growth RateExcellent| Growth Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Revenue Growth Rate | N/A | N/A | N/A | N/A | N/A |
| Operating Profit Growth Rate | -13.51 | 5.21 | 5.94 | 1.87 | -17.43 |
| Earnings Per Share (EPS) Growth | -94.8 | 386.49 | -14.44 | -5.19 | -95.21 |
| Asset Growth Rate | N/A | 2.33 | 11.95 | 8.13 | -0.47 |
| Net Income Growth Rate | N/A | N/A | N/A | N/A | N/A |
Revenue Growth Rate
Operating Profit Growth Rate
Earnings Per Share (EPS) Growth
Asset Growth Rate
Net Income Growth Rate
Financial Score : 4.40The company's financial health is mixed. While capital expenditures are well-managed, earnings per share and dividend payouts are low. Improving earnings and shareholder returns is crucial for enhancing investor confidence. The book value per share indicates the net asset value of the company, reflecting its intrinsic worth.
Adjusted Earnings Per Share (Adjusted EPS)Poor
Cash Earnings Per Share (Cash EPS)WeakBook Value Per ShareAverageDividend Per Share (DPS)PoorCapital Expenditures (CapEx)Excellent| Financial Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Adjusted Earnings Per Share (Adjusted EPS) | N/A | N/A | N/A | N/A | N/A |
| Cash Earnings Per Share (Cash EPS) | N/A | N/A | N/A | N/A | N/A |
| Book Value Per Share | 101.62 | 46.96 | 48.57 | 48.4 | 46.21 |
| Dividend Per Share (DPS) | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures (CapEx) | 0 | 0 | 0 | 0 | 0 |
Adjusted Earnings Per Share (Adjusted EPS)
Cash Earnings Per Share (Cash EPS)
Book Value Per Share
Dividend Per Share (DPS)
Capital Expenditures (CapEx)
Profitability Score : 4.40The company exhibits high gross and operating profit margins but struggles with overall profitability. The strong margins suggest efficient core operations, but the low returns on capital, equity, and assets indicate inefficient capital deployment. Enhancing asset utilization and cost management can improve overall profitability and shareholder returns.
Gross Profit MarginExcellentReturn on Capital Employed (ROCE)PoorReturn on Equity (ROE)PoorReturn on Assets (ROA)PoorOperating MarginExcellentNet MarginPoor| Profitability Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Gross Profit Margin | N/A | N/A | N/A | N/A | N/A |
| Return on Capital Employed (ROCE) | N/A | N/A | N/A | N/A | N/A |
| Return on Equity (ROE) | N/A | N/A | N/A | N/A | N/A |
| Return on Assets (ROA) | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | N/A | N/A | N/A | N/A | N/A |
| Net Margin | N/A | N/A | N/A | N/A | N/A |
Gross Profit Margin
Return on Capital Employed (ROCE)
Return on Equity (ROE)
Return on Assets (ROA)
Operating Margin
Net Margin
Efficiency Score : 2.50The company's efficiency in managing its assets needs improvement. The company may not be maximizing the use of its inventory and receivables to generate revenue. Enhancing asset turnover can lead to better profitability and cash flow management.
Inventory Turnover RatioPoorReceivables Turnover RatioWeakDays Sales in Inventory RatioPoorReceivable DaysPoor| Efficiency Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Fixed Asset Turnover Ratio | N/A | N/A | N/A | N/A | N/A |
| Inventory Turnover Ratio | N/A | N/A | N/A | N/A | N/A |
| Receivables Turnover Ratio | N/A | N/A | N/A | N/A | N/A |
| Days Sales in Inventory Ratio | N/A | N/A | N/A | N/A | N/A |
| Receivable Days | N/A | N/A | N/A | N/A | N/A |
| Capital Turnover Ratio | 0 | 0 | 0 | 0 | 0 |
Inventory Turnover Ratio
Receivables Turnover Ratio
Days Sales in Inventory Ratio
Receivable Days
Coverage Score : 2.00The company's ability to cover its interest expenses is weak. The company may face challenges in servicing its debt if earnings decline. Enhancing earnings and managing debt levels are crucial for improving the coverage ratio and reducing financial risk.
Interest Coverage RatioPoor| Coverage Ratios | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|
| Interest Coverage Ratio | 3.09 | 1.67 | 2.04 | 1.62 | 1.4 | 1.05 |
| Equity Dividend Coverage Ratio | N/A | N/A | N/A | N/A | N/A | N/A |
Interest Coverage Ratio
Solvency Score : 9.09The company's solvency position is strong. The company's debt levels are well-managed, suggesting a low risk of financial distress. A strong solvency position enhances investor confidence and provides financial flexibility for future growth initiatives.
Debt RatioGoodDebt to Equity RatioExcellentInterest Coverage RatioGood| Solvency Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Debt Ratio | 0 | 0 | 0 | 0 | 0 |
| Debt to Equity Ratio | 0 | 0 | 0 | 0 | 0 |
| Equity Ratio | 1 | 1 | 1 | 1 | 1 |
| Debt To Asset Ratio | 0 | 0 | 0 | 0 | 0 |
Debt Ratio
Debt to Equity Ratio
Interest Coverage Ratio
Liquidity Score : 0.00The liquidity position of the company needs improvement. The company may face challenges in meeting its short-term obligations if current assets are not sufficient to cover current liabilities. In the IT sector, maintaining adequate liquidity is crucial for managing operational expenses and investing in new technologies.
Current RatioAverageQuick RatioAverageCash RatioAverage| Liquidity Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Current Ratio | N/A | N/A | N/A | N/A | N/A |
| Quick Ratio | N/A | N/A | N/A | N/A | N/A |
| Cash Ratio | N/A | N/A | N/A | N/A | N/A |
| Operating Cash Flow Ratio | N/A | N/A | N/A | N/A | N/A |
Current Ratio
Quick Ratio
Cash Ratio
Peer Comparison empowers investors to evaluate a company against its industry peers using key financial metrics like P/E ratio, EPS, and profit margins. It helps identify whether a company is overvalued, undervalued, or performing in line with competitors. Investors can use this data to spot opportunities, assess risks, and make informed decisions. This contextual view adds depth beyond standalone company analysis.
| NO | Company Name | Health Score | P/E Ratio | Valuation | OPM | EPS | Latest Profit & Loss |
|---|---|---|---|---|---|---|---|
| 1 | Virinchi Ltd | 4.44 | 289.00 | Neutral | 89.00 | 1.56 | N/A |
Balanced ManagementThe management effectiveness of Virinchi Ltd. shows a mixed performance, highlighting both strengths and weaknesses. The company has improved its operational efficiency, as indicated by the increasing OPM. However, there are concerns about declining sales and profit growth, as well as increasing debt. The decrease in promoter holding also raises questions about long-term stability. These factors contribute to an overall assessment of mixed management effectiveness.
| Category | Metric | Value | Assessment |
|---|---|---|---|
| PROS | Operating Profit Margin | Improved OPM | Enhanced operational efficiency |
| CONS | Compounded Sales Growth | Declined -6% (5 Years) | Potential challenges in revenue expansion |
| CONS | Compounded Profit Growth | Declined -26% (5 Years) | Difficulties in sustaining profitability |
| CONS | Promoter Holding | Decreased to 38.07% | Potential lack of confidence from company's founders |
Financial Performance & GrowthAverageCapital Efficiency & ReturnsWeakFinancial Health & PrudencePoorShareholding & Ownership StructureWeakFinancial Performance & Growth
Virinchi Ltd.'s financial performance indicates a mixed trend. The Operating Profit Margin (OPM) has improved, but sales and profit growth have been inconsistent.
PROS: Improving Operating Profit Margin
The company's Operating Profit Margin (OPM) has shown improvement, indicating enhanced operational efficiency. This suggests effective cost control and improved profitability from core business activities.
| Metric | Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|---|---|---|---|
| OPM % | 29.01% | 35.40% | 45.00% | 37.24% | 30.51% | 39.91% | 37.65% | 28.75% | 32.35% |
CONS: Declining Sales Growth
Compounded Sales Growth has declined, indicating potential challenges in maintaining revenue expansion. This could be due to increased competition, changing market dynamics, or internal operational issues. The trend suggests a need for strategic adjustments to revitalize sales performance.
| Metric | 10 Years | 5 Years | 3 Years | TTM |
|---|---|---|---|---|
| CAGR % | 10% | -6% | -6% | -4% |
CONS: Declining Profit Growth
Compounded Profit Growth has also decreased, reflecting potential difficulties in sustaining profitability. This decline may be attributed to rising costs, decreasing sales, or other factors affecting the bottom line.
| Metric | 10 Years | 5 Years | 3 Years | TTM |
|---|---|---|---|---|
| CAGR % | 13% | -26% | 60% | -63% |
Capital Efficiency & Returns
The capital efficiency and returns for Virinchi Ltd. are concerning, with low ROCE and ROE indicating inefficient use of capital and shareholder funds.
CONS: Low Return on Capital Employed (ROCE)
The Return on Capital Employed (ROCE) is low, suggesting that the company is not effectively utilizing its capital to generate profits. This could be due to underperforming assets, high capital costs, or inefficient operations.
| Metric | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| ROCE % | 13% | 10% | 9% | 8% | 8% |
CONS: Low Return on Equity (ROE)
The Return on Equity (ROE) is also low, indicating that shareholder funds are not yielding good returns. This could be due to low profitability or inefficient use of equity. Enhancing ROE is crucial for maximizing shareholder value.
| Metric | 10 Years | 5 Years | 3 Years | Last Year |
|---|---|---|---|---|
| ROE % | 8% | 5% | 3% | 3% |
Financial Health & Prudence
Virinchi Ltd.'s financial health is under pressure due to increasing debt levels.
CONS: Increasing Debt
Borrowings have increased, leading to a higher debt burden. This can elevate financial risk and limit the company's flexibility in pursuing growth opportunities.
| Metric | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Borrowings | 156 | 261 | 276 | 317 | 330 |
Shareholding & Ownership Structure
The shareholding pattern of Virinchi Ltd. reveals a concerning trend with decreasing promoter holding.
CONS: Decreasing Promoter Holding
The promoter holding has decreased, indicating a potential lack of confidence or commitment from the company's founders. This decline may raise concerns among investors regarding the long-term vision and stability of the company.
| Metric | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
|---|---|---|---|---|
| Promoter Holding | 49.33% | 41.42% | 37.30% | 38.07% |
Balanced RiskThe risk assessment for Virinchi Ltd. indicates a moderate level of concern. Segment performance volatility is evident. The company's increasing reliance on borrowings contributes to heightened financial risk. These factors collectively suggest a need for cautious monitoring. While the company exhibits certain strengths, the identified risks could pose challenges to its stability and growth.
Segment performance volatilityAverageForeign exchange or interest rate exposureAverageSegment performance volatility
The quarterly results of Virinchi Ltd. show volatility in both sales and profit growth, which indicates segment performance instability. The YOY Sales Growth % and YOY Profit Growth % fluctuate significantly, reflecting inconsistency in operational performance.
| Metric | Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|---|---|---|---|
| YOY Sales Growth % | -3.52% | -3.38% | -7.05% | 5.95% | -8.24% | -8.37% | -4.21% | -5.95% | 2.44% |
| YOY Profit Growth % | -1,613% | -6% | 396% | 348% | 142% | -6% | -83% | -76% | -88% |
Foreign exchange or interest rate exposure
With increasing borrowings, the company's sensitivity to interest rate fluctuations becomes a pertinent risk. Any upward movement in interest rates could further strain profitability and debt management capabilities. Continuous monitoring of interest rate trends and proactive hedging strategies are essential to mitigate this risk.
| Metric | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Interest | 22 | 33 | 27 | 34 | 43 |
| Borrowings | 156 | 261 | 276 | 317 | 330 |
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Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 1 Technical Indicators From The 1 Hour Timeframe
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Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 1 Technical Indicators From The 2 Hours Timeframe
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Strong Bearish
Bearish
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Bullish
Strong Bullish
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Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
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Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 1 Technical Indicators From The 1 Week Timeframe
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 1 Technical Indicators From The 1 Month Timeframe