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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: | NSE:

Fundamental Analysis of Vera Synthetic Ltd

About the Company - Vera Synthetic Ltd

Vera Synthetic Ltd. is a Public Limited Listed company incorporated on 16/02/2000 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L17110GJ2000PLC037369 and registration number is 037369. Currently company belongs to the Industry of Textiles - Synthetic/Silk. Company’s Total Operating Revenue is Rs. 34.98 Cr. and Equity Capital is Rs. 4.94 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Synthetic/SilkOffice No.UL-27, Bhavnagar Gujarat 364002info@sujlonropes.com
http://www.sujlonropes.com
Management
NamePosition Held
Mrs. Meera S MakwanaWhole Time Director
Mr. Devjibhai P MakwanaExecutive Director
Mr. Ravikumar B AdhiyaIndependent Director
Mr. Dineshbhai M PatelIndependent Director
Mrs. Divyaben H MehtaIndependent Director
Mr. Sunil D MakwanaChairman & Managing Director

Vera Synthetic Ltd. Share Price Update

Share PriceValue
Today₹52.00
Previous Day₹52.00

Basic Stock Data of Vera Synthetic Ltd

Market Cap 25.7 Cr.
Current Price 52.0
High / Low99.2/50.5
Stock P/E16.3
Book Value 38.3
Dividend Yield0.00 %
ROCE13.3 %
ROE9.98 %
Face Value 10.0

Data Source: screener.in

Competitors of Vera Synthetic Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Zenith Exports Ltd 97.4 Cr. 180203/76.248.0 1490.00 %2.23 %0.95 % 10.0
Eastern Silk Industries Ltd 19.7 Cr. 2.503.45/1.75 6.370.00 %11.9 %% 2.00
Industry Average58.55 Cr91.252477.690%7.07%0.48%6

Vera Synthetic Ltd Quarterly Results

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales18.0115.5614.7013.4317.4017.5819.6140.7121.55
Expenses16.3713.9712.4213.3616.5715.3517.9337.7821.21
Operating Profit1.641.592.280.070.832.231.682.930.34
OPM %9.11%10.22%15.51%0.52%4.77%12.68%8.57%7.20%1.58%
Other Income0.000.000.001.030.31-0.050.050.170.01
Interest0.100.090.070.090.070.090.070.160.05
Depreciation0.310.370.300.310.340.170.210.490.54
Profit before tax1.231.131.910.700.731.921.452.45-0.24
Tax %27.64%15.93%29.84%27.14%26.03%25.52%24.14%25.71%-4.17%
Net Profit0.900.961.350.510.541.421.091.82-0.25
EPS in Rs1.821.952.741.031.092.882.213.69-0.51

Vera Synthetic Ltd Quarterly Chart

Vera Synthetic Ltd Profit & Loss

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales16.1120.2319.5824.3221.8918.1322.1533.7332.2927.7634.9840.7162.26
Expenses15.5119.1418.6723.3721.0217.1719.8631.0329.2225.4331.9337.7858.99
Operating Profit0.601.090.910.950.870.962.292.703.072.333.052.933.27
OPM %3.72%5.39%4.65%3.91%3.97%5.30%10.34%8.00%9.51%8.39%8.72%7.20%5.25%
Other Income0.000.000.180.180.060.020.100.170.171.050.260.170.18
Interest0.000.400.330.350.130.100.370.250.190.160.160.160.21
Depreciation0.400.450.280.380.400.260.480.650.670.610.510.491.03
Profit before tax0.200.240.480.400.400.621.541.972.382.612.642.452.21
Tax %5.00%29.17%31.25%90.00%32.50%32.26%31.17%28.93%21.85%28.74%25.76%25.71%
Net Profit0.190.160.330.050.270.431.061.401.851.861.971.821.57
EPS in Rs1.060.891.830.281.502.392.942.843.753.773.993.693.18
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Vera Synthetic Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2011-20122014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-15.79%-84.85%440.00%59.26%146.51%32.08%32.14%0.54%5.91%-7.61%
Change in YoY Net Profit Growth (%)0.00%-69.06%524.85%-380.74%87.25%-114.44%0.07%-31.60%5.37%-13.53%

Vera Synthetic Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:8%
TTM:67%
Compounded Profit Growth
10 Years:%
5 Years:11%
3 Years:0%
TTM:-37%
Stock Price CAGR
10 Years:%
5 Years:1%
3 Years:14%
1 Year:-16%
Return on Equity
10 Years:%
5 Years:13%
3 Years:11%
Last Year:10%

Vera Synthetic Ltd Balance Sheet

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1.801.801.801.801.801.803.604.944.944.944.944.944.94
Reserves0.490.661.612.402.672.331.586.708.5510.4112.3814.2013.95
Borrowings3.473.403.311.270.810.855.011.761.401.821.681.132.27
Other Liabilities1.162.521.791.592.042.895.122.293.373.444.522.925.37
Total Liabilities6.928.388.517.067.327.8715.3115.6918.2620.6123.5223.1926.53
Fixed Assets2.191.972.012.412.401.063.453.974.014.473.056.086.74
CWIP0.000.000.370.370.000.000.000.000.000.000.000.000.00
Investments0.000.000.000.000.000.000.000.000.000.000.000.000.00
Other Assets4.736.416.134.284.926.8111.8611.7214.2516.1420.4717.1119.79
Total Assets6.928.388.517.067.327.8715.3115.6918.2620.6123.5223.1926.53

Vera Synthetic Ltd Reserves and Borrowings Chart

Vera Synthetic Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0.000.002.60-0.63-1.421.471.23-1.334.04
Cash from Investing Activity 0.000.00-2.66-2.85-1.14-0.66-0.920.93-3.51
Cash from Financing Activity 0.000.00-0.063.574.36-0.650.14-0.37-0.73
Net Cash Flow0.000.00-0.120.091.800.160.45-0.77-0.20

Vera Synthetic Ltd Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days45.3165.1354.8146.8345.6936.04136.2882.6792.0183.3689.0182.13
Inventory Days50.6513.1821.1531.9738.305.4628.5251.6030.2338.86
Days Payable11.5410.2316.107.0581.6216.3823.5033.4137.5714.65
Cash Conversion Cycle45.3165.1393.9149.7750.7460.9792.9671.7697.02101.5581.67106.34
Working Capital Days76.3564.4178.6739.7736.5221.3492.4470.0186.02124.65140.76107.05
ROCE %11.02%12.31%9.86%14.04%25.18%18.82%17.96%16.47%15.48%13.29%

Vera Synthetic Ltd Financial Efficiency Indicators Chart

Vera Synthetic Ltd Share Holding Pattern

MonthApr 2018Sep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Promoters58.76%59.25%59.86%59.86%59.86%59.95%60.19%60.19%60.19%68.30%68.30%68.66%
Public41.24%40.76%40.14%40.15%40.15%40.05%39.80%39.82%39.82%31.70%31.70%31.34%
No. of Shareholders29495999292103106999897104109

Vera Synthetic Ltd Shareholding Pattern Chart

No. of Vera Synthetic Ltd Shareholders

This stock is not held by any mutual fund

Vera Synthetic Ltd ROCE Trend

Vera Synthetic Ltd EPS Trend

Vera Synthetic Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.693.993.763.762.84
Diluted EPS (Rs.)3.693.993.763.762.84
Cash EPS (Rs.)4.675.014.995.124.16
Book Value[Excl.RevalReserv]/Share (Rs.)38.7735.0831.0927.3323.58
Book Value[Incl.RevalReserv]/Share (Rs.)38.7735.0831.0927.3323.58
Revenue From Operations / Share (Rs.)82.4870.8956.9567.6868.71
PBDIT / Share (Rs.)6.286.716.856.555.81
PBIT / Share (Rs.)5.305.685.625.184.49
PBT / Share (Rs.)4.975.365.294.813.99
Net Profit / Share (Rs.)3.693.993.763.762.84
PBDIT Margin (%)7.619.4612.039.678.46
PBIT Margin (%)6.428.019.867.666.54
PBT Margin (%)6.027.569.287.105.80
Net Profit Margin (%)4.465.626.605.554.13
Return on Networth / Equity (%)9.5111.3612.0913.7412.03
Return on Capital Employeed (%)13.2815.2316.6617.5716.99
Return On Assets (%)7.848.369.0010.158.92
Long Term Debt / Equity (X)0.020.060.080.070.12
Total Debt / Equity (X)0.050.090.080.070.12
Asset Turnover Ratio (%)1.741.591.451.972.19
Current Ratio (X)4.803.954.003.734.34
Quick Ratio (X)3.913.553.383.284.20
Inventory Turnover Ratio (X)7.265.384.9417.0519.94
Interest Coverage Ratio (X)19.2521.3020.7017.3611.49
Interest Coverage Ratio (Post Tax) (X)12.2913.6612.3510.966.61
Enterprise Value (Cr.)35.2912.3314.2840.9133.91
EV / Net Operating Revenue (X)0.860.350.501.221.00
EV / EBITDA (X)11.383.734.2212.6611.82
MarketCap / Net Operating Revenue (X)0.880.360.561.271.03
Price / BV (X)1.890.741.043.142.99
Price / Net Operating Revenue (X)0.880.360.561.271.03
EarningsYield0.050.150.110.040.04

Vera Synthetic Ltd Profitability Ratios (%)

Vera Synthetic Ltd Liquidity Ratios

Vera Synthetic Ltd Liquidity Ratios (%)

Vera Synthetic Ltd Interest Coverage Ratios (X)

Vera Synthetic Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vera Synthetic Ltd

Fair Value: ₹63.55

The stock is undervalued by 22.21% compared to the current price ₹52

*Investments are subject to market risks

Strength and Weakness of Vera Synthetic Ltd

StrengthWeakness
  1. The company has higher reserves (5.99 cr) compared to borrowings (2.17 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (28.78 cr) and profit (1.40 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.25 and average Dividend Yield of 7.15%.
  2. The stock has a low average ROCE of 12.87%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 78.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 76.43, which may not be favorable.

Should I Buy Vera Synthetic Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Vera Synthetic Ltd:
    1. Net Profit Margin: 4.46% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.28% (Industry Average ROCE: 7.07%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 12.29 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 3.91 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 16.3 (Industry average Stock P/E: 25.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.05 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Vera Synthetic Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE