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Last Updated on: 08 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 511333 | NSE: VLSFINANCE

VLS Finance Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 7, 2024, 9:04 pm

Market Cap 1,436 Cr.
Current Price 413
High / Low455/182
Stock P/E4.41
Book Value 857
Dividend Yield0.36 %
ROCE14.1 %
ROE11.8 %
Face Value 10.0
PEG Ratio0.43

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for VLS Finance Ltd

Competitors of VLS Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HCKK Ventures Ltd 43.0 Cr. 116154/77.4187 11.30.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 121 Cr. 112177/53.512.7 2660.89 %3.34 %2.90 % 10.0
Haryana Capfin Ltd 192 Cr. 369448/0.0067.0 7690.00 %1.30 %0.97 % 10.0
Harmony Capital Services Ltd 19.8 Cr. 65.973.4/36.2 4.470.00 %6.55 %5.09 % 10.0
Gujarat Credit Corporation Ltd 160 Cr. 63.863.8/18.5 5.560.00 %0.06 %0.79 % 10.0
Industry Average4,055.60N/A58.89N/AN/A15.2316.04N/A

All Competitor Stocks of VLS Finance Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales11585961831-548071-151128411398
Expenses7565445496667
Operating Profit10880891326-577566-241057810791
OPM %94%94%94%72%86%94%94%94%93%95%92%
Other Income-1020001012622
Interest0000000000000
Depreciation0000111111112
Profit before tax10780921326-587566-241058210791
Tax %2%10%13%-22%-66%-25%17%19%-35%13%14%18%19%
Net Profit10572801543-436253-1692708874
EPS in Rs27.0918.6620.663.9611.09-11.2316.0513.73-4.0726.4320.2025.3021.28

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,3233,8174,6251,9152,6942,162153622223284412426
Expenses2,3183,8124,6171,9072,6312,13228391421222627
Operating Profit45876330-12-420921262386399
OPM %0%0%0%0%2%1%-82%-10%94%91%74%94%94%
Other Income-0015-5-000000611
Interest0002000000000
Depreciation0000011111466
Profit before tax448105830-13-520821058386405
Tax %49%16%10%10%23%15%-68%-914%-7%-0%4%16%
Net Profit24794425-43922121056324326
EPS in Rs0.500.961.842.2911.436.51-1.0810.1557.2554.3714.4893.2193.58
Dividend Payout %0%0%0%0%9%15%-93%15%3%3%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)100.00%75.00%28.57%388.89%-43.18%-116.00%1075.00%466.67%-4.98%-73.33%478.57%
Change in YoY Net Profit Growth (%)0.00%-25.00%-46.43%360.32%-432.07%-72.82%1191.00%-608.33%-471.64%-68.36%551.90%

VLS Finance Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-20%
5 Years:94%
3 Years:23%
TTM:72%
Compounded Profit Growth
10 Years:56%
5 Years:140%
3 Years:14%
TTM:70%
Stock Price CAGR
10 Years:31%
5 Years:51%
3 Years:25%
1 Year:121%
Return on Equity
10 Years:7%
5 Years:7%
3 Years:7%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 2:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital403939393939393939393535
Reserves1631661952042432641,2471,7132,3932,9272,4652,948
Borrowings0011700000110
Other Liabilities283333244110350438637719562570
Total Liabilities2312382672833233131,6362,1893,0683,6853,0633,552
Fixed Assets77711110101092892130
CWIP000002479000
Investments981682112402732561,5712,0412,8033,4342,7513,158
Other Assets126634942404451132247223221264
Total Assets2312382672833233131,6362,1893,0683,6853,0633,552

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 220-30-17-12-21-22-1041661657194
Cash from Investing Activity -90274351730113-72-18527-197
Cash from Financing Activity -00014-17-0-5-5-6-11-68-13
Net Cash Flow130-216-43488-31-34-15

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow4.005.007.00-10.0063.0030.00-12.00-4.00209.00211.0061.00386.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days13201002730327916
Inventory Days001112
Days Payable000001
Cash Conversion Cycle13212112730327916
Working Capital Days1442412275986207200625175
ROCE %2%2%4%3%26%12%-2%-0%10%8%2%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters45.65%45.76%45.76%45.76%45.76%50.22%50.85%50.85%50.85%50.85%50.85%52.02%
FIIs3.21%3.14%3.06%2.64%2.12%1.70%0.37%0.40%0.52%0.74%1.06%2.14%
DIIs0.08%0.08%0.08%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
Public51.06%51.02%51.10%51.57%52.09%48.05%48.76%48.73%48.61%48.39%48.05%45.81%
No. of Shareholders29,87930,08930,28230,25230,29027,63427,18327,16627,06727,48028,04129,252

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)93.0714.4954.3757.2610.15
Diluted EPS (Rs.)93.0714.4954.3757.2610.15
Cash EPS (Rs.)94.5217.0454.5857.2710.42
Book Value[Excl.RevalReserv]/Share (Rs.)854.18707.37764.57627.84452.31
Book Value[Incl.RevalReserv]/Share (Rs.)854.18707.37764.57627.84452.31
Revenue From Operations / Share (Rs.)116.5623.2159.1357.247.86
PBDIT / Share (Rs.)112.3017.6654.5453.80-0.92
PBIT / Share (Rs.)110.6716.4654.1653.59-1.23
PBT / Share (Rs.)110.6116.4154.1553.59-1.24
Net Profit / Share (Rs.)92.8815.8354.2057.0810.12
NP After MI And SOA / Share (Rs.)92.8815.8354.2057.0710.12
PBDIT Margin (%)96.3476.0992.2393.98-11.79
PBIT Margin (%)94.9470.8991.5993.63-15.60
PBT Margin (%)94.8970.7191.5793.62-15.82
Net Profit Margin (%)79.6868.2091.6699.71128.70
NP After MI And SOA Margin (%)79.6868.2091.6599.71128.68
Return on Networth / Equity (%)10.872.237.089.102.24
Return on Capital Employeed (%)10.891.905.716.77-0.21
Return On Assets (%)9.121.825.707.211.79
Asset Turnover Ratio (%)0.120.020.110.110.02
Current Ratio (X)792.10663.73406.721676.18499.89
Quick Ratio (X)792.10663.73406.721676.18499.89
Dividend Payout Ratio (NP) (%)0.0010.362.752.619.85
Dividend Payout Ratio (CP) (%)0.009.622.732.619.56
Earning Retention Ratio (%)0.0089.6497.2597.3990.15
Cash Earning Retention Ratio (%)0.0090.3897.2797.3990.44
Interest Coverage Ratio (X)1907.30410.536528.635534.30-54.83
Interest Coverage Ratio (Post Tax) (X)1578.50368.996489.415872.71599.34
Enterprise Value (Cr.)801.06466.64542.40212.02105.95
EV / Net Operating Revenue (X)1.975.692.370.953.47
EV / EBITDA (X)2.047.472.561.02-29.46
MarketCap / Net Operating Revenue (X)2.076.412.701.434.09
Retention Ratios (%)0.0089.6397.2497.3890.14
Price / BV (X)0.280.210.200.130.07
Price / Net Operating Revenue (X)2.076.412.701.434.09
EarningsYield0.380.100.330.690.31

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of VLS Finance Ltd as of November 8, 2024 is: 447.57

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 8, 2024, VLS Finance Ltd is Undervalued by 8.37% compared to the current share price ₹413.00

Intrinsic Value of VLS Finance Ltd as of November 8, 2024 is: 493.79

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 8, 2024, VLS Finance Ltd is Undervalued by 19.56% compared to the current share price ₹413.00

Last 5 Year EPS CAGR: 10.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,244.00 cr) compared to borrowings (1.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (110.85 cr) and profit (104.85 cr) over the years.
  1. The stock has a low average ROCE of 6.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 207.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 14.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in VLS Finance Ltd:
    1. Net Profit Margin: 79.68%
      • 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: 10.89% (Industry Average ROCE: 15.23%)
      • 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. ROE%: 10.87% (Industry Average ROE: 16.04%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1578.5
      • 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.
    5. Quick Ratio: 792.1
      • 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.
    6. Stock P/E: 4.41 (Industry average Stock P/E: 58.89)
      • 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.
    7. Total Debt / Equity: 0
      • 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.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

VLS Finance Ltd. is a Public Limited Listed company incorporated on 20/01/1986 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L65910DL1986PLC023129 and registration number is 023129. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 285.55 Cr. and Equity Capital is Rs. 38.78 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsGround Floor, 90, Okhla New Delhi Delhi 110020vls@vlsfinance.com
http://www.vlsfinance.com
Management
NamePosition Held
Mr. Anoop MishraChairman & Ind.Director
Mr. Gaurav GoelVice Chairman & Non Exe.Dire
Mr. S K AgarwalManaging Director
Mr. Keshav TandanExecutive Director
Mr. K K SoniDirector - Finance & CFO
Mr. D K MehrotraIndependent Director
Mr. Adesh Kumar JainIndependent Director
Mr. Najeeb Hamid JungIndependent Director
Mrs. Neeraj Vinay BansalIndependent Director
Mr. Shivesh Ram MehrotraNon Executive Director

FAQ

What is the latest fair value of VLS Finance Ltd?

The latest fair value of VLS Finance Ltd is ₹447.57.

What is the Market Cap of VLS Finance Ltd?

The Market Cap of VLS Finance Ltd is 1,436 Cr..

What is the current Stock Price of VLS Finance Ltd as on 08 November 2024?

The current stock price of VLS Finance Ltd as on 08 November 2024 is 413.

What is the High / Low of VLS Finance Ltd stocks in FY 2024?

In FY 2024, the High / Low of VLS Finance Ltd stocks is 455/182.

What is the Stock P/E of VLS Finance Ltd?

The Stock P/E of VLS Finance Ltd is 4.41.

What is the Book Value of VLS Finance Ltd?

The Book Value of VLS Finance Ltd is 857.

What is the Dividend Yield of VLS Finance Ltd?

The Dividend Yield of VLS Finance Ltd is 0.36 %.

What is the ROCE of VLS Finance Ltd?

The ROCE of VLS Finance Ltd is 14.1 %.

What is the ROE of VLS Finance Ltd?

The ROE of VLS Finance Ltd is 11.8 %.

What is the Face Value of VLS Finance Ltd?

The Face Value of VLS Finance Ltd is 10.0.

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 VLS Finance 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