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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 511333 | NSE: VLSFINANCE

Fundamental Analysis of VLS Finance Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:33 am

Market Cap 891 Cr.
Current Price 257
High / Low322/146
Stock P/E3.80
Book Value 830
Dividend Yield0.58 %
ROCE2.13 %
ROE2.05 %
Face Value 10.0

Data Source: screener.in

Competitors of VLS Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Advik Capital Ltd 113 Cr. 2.644.35/1.9017.8 2.630.00 %10.1 %7.43 % 1.00
Ashika Credit Capital Ltd 95.8 Cr. 80.691.0/31.05.70 54.50.00 %13.6 %10.8 % 10.0
TCI Finance Ltd 7.46 Cr. 5.806.22/2.65 41.00.00 %%% 10.0
Viji Finance Ltd 30.2 Cr. 3.703.82/1.41252 1.480.00 %1.62 %0.99 % 1.00
Welspun Investments & Commercials Ltd 282 Cr. 786935/27652.7 1,0300.00 %4.36 %3.26 % 10.0
Industry Average105.69 Cr175.7565.64225.920.00%5.94%4.50%6.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6611585961831-548071-1511284113
Expenses3756544549666
Operating Profit6310880891326-577566-2410578107
OPM %95%94%94%94%72%86%94%94%94%93%95%
Other Income2-102000101262
Interest0000000000000
Depreciation0000011111111
Profit before tax6410780921326-587566-2410582107
Tax %-15%2%10%13%-22%-66%25%17%19%35%13%14%18%
Net Profit7410572801543-436253-16927088
EPS in Rs19.1127.0918.6620.663.9611.09-11.2316.0513.73-4.0726.4320.2025.30

Last Updated: April 10, 2024, 5:19 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:30 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,2042,3233,8174,6251,9152,6942,162153622223284294
Expenses2,2002,3183,8124,6171,9072,6312,132283914212228
Operating Profit445876330-12-420921262266
OPM %0%0%0%0%0%2%1%-82%-10%94%91%74%91%
Other Income1-0015-5-00000010
Interest1000200000000
Depreciation2000001111146
Profit before tax3448105830-13-520821058271
Tax %-6%49%16%10%10%23%15%68%914%-7%-0%4%
Net Profit324794425-43922121056235
EPS in Rs0.730.500.961.842.2911.436.51-1.0810.1557.2554.3714.4867.86
Dividend Payout %0%0%0%0%0%9%15%-93%15%3%3%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-33.33%100.00%75.00%28.57%388.89%-43.18%-116.00%1075.00%466.67%-4.98%-73.33%
Change in YoY Net Profit Growth (%)0.00%133.33%-25.00%-46.43%360.32%-432.07%-72.82%1191.00%-608.33%-471.64%-68.36%

Growth

Compounded Sales Growth
10 Years:-28%
5 Years:-48%
3 Years:33%
TTM:130%
Compounded Profit Growth
10 Years:40%
5 Years:13%
3 Years:13%
TTM:105%
Stock Price CAGR
10 Years:33%
5 Years:33%
3 Years:46%
1 Year:52%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:6%
Last Year:2%

Last Updated: April 17, 2024, 2:33 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital40403939393939393939393535
Reserves1611631661952042432641,2471,7132,3932,9272,4652,854
Borrowings-0-0-0117-0-000-0110
Other Liabilities29283333244110350438637719562644
Total Liabilities2292312382672833233131,6362,1893,0683,6853,0633,534
Fixed Assets77771111010109289289
CWIP-0-0-0-0-0024790-0-0
Investments95981682112402732561,5712,0412,8033,4342,7513,214
Other Assets127126634942404451132247223221231
Total Assets2292312382672833233131,6362,1893,0683,6853,0633,534

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -16220-30-17-12-21-22-1041661657
Cash from Investing Activity 10-90274351730113-72-18527
Cash from Financing Activity -17-00014-17-0-5-5-6-11-68
Net Cash Flow-23130-216-43488-31-34

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow4.004.005.007.00-10.0063.0030.00-12.00-4.00209.00211.0061.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days14132010-027303279
Inventory Days0001112
Days Payable0000001
Cash Conversion Cycle14132121127303279
Working Capital Days161442412275986207200625
ROCE %2%2%2%4%3%26%12%-2%-0%10%8%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters45.65%45.65%45.65%45.65%45.76%45.76%45.76%45.76%50.22%50.85%50.85%50.85%
FIIs2.59%2.66%3.12%3.21%3.14%3.06%2.64%2.12%1.70%0.37%0.40%0.52%
DIIs0.03%0.09%0.03%0.08%0.08%0.08%0.03%0.03%0.03%0.03%0.03%0.03%
Public51.73%51.60%51.20%51.06%51.02%51.10%51.57%52.09%48.05%48.76%48.73%48.61%
No. of Shareholders23,28924,78930,98329,87930,08930,28230,25230,29027,63427,18327,16627,067

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)14.4954.3757.2610.15-1.08
Diluted EPS (Rs.)14.4954.3757.2610.15-1.08
Cash EPS (Rs.)17.0454.5857.2710.42-0.92
Book Value[Excl.RevalReserv]/Share (Rs.)707.37764.57627.84452.31331.97
Book Value[Incl.RevalReserv]/Share (Rs.)707.37764.57627.84452.31331.97
Revenue From Operations / Share (Rs.)23.2159.1357.247.864.09
PBDIT / Share (Rs.)17.6654.5453.80-0.92-3.21
PBIT / Share (Rs.)16.4654.1653.59-1.23-3.37
PBT / Share (Rs.)16.4154.1553.59-1.24-3.37
Net Profit / Share (Rs.)15.8354.2057.0810.12-1.08
NP After MI And SOA / Share (Rs.)15.8354.2057.0710.12-1.08
PBDIT Margin (%)76.0992.2393.98-11.79-78.49
PBIT Margin (%)70.8991.5993.63-15.60-82.23
PBT Margin (%)70.7191.5793.62-15.82-82.29
Net Profit Margin (%)68.2091.6699.71128.70-26.32
NP After MI And SOA Margin (%)68.2091.6599.71128.68-26.28
Return on Networth / Equity (%)2.237.089.102.24-0.32
Return on Capital Employeed (%)1.905.716.77-0.21-0.80
Return On Assets (%)1.825.707.211.79-0.25
Asset Turnover Ratio (%)0.020.110.110.020.02
Current Ratio (X)663.73406.721676.18499.89150.04
Quick Ratio (X)663.73406.721676.18499.89150.04
Dividend Payout Ratio (NP) (%)10.362.752.619.85-92.62
Dividend Payout Ratio (CP) (%)9.622.732.619.56-107.98
Earning Retention Ratio (%)89.6497.2597.3990.15192.62
Cash Earning Retention Ratio (%)90.3897.2797.3990.44207.98
Interest Coverage Ratio (X)410.536528.635534.30-54.83-1312.16
Interest Coverage Ratio (Post Tax) (X)368.996489.415872.71599.34-439.03
Enterprise Value (Cr.)466.64542.40212.02105.95209.91
EV / Net Operating Revenue (X)5.692.370.953.4713.22
EV / EBITDA (X)7.472.561.02-29.46-16.84
MarketCap / Net Operating Revenue (X)6.412.701.434.0914.19
Retention Ratios (%)89.6397.2497.3890.14192.62
Price / BV (X)0.210.200.130.070.17
Price / Net Operating Revenue (X)6.412.701.434.0914.19
EarningsYield0.100.330.690.31-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 65.03

The stock is overvalued by 74.70% compared to the current price ₹257

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,153.46 cr) compared to borrowings (1.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (69.15 cr) and profit (65.08 cr) over the years.
  1. The stock has a low average ROCE of 5.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 194.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 14.58, 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: 68.20%
      • 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: 1.90% (Industry Average ROCE: 5.94%)
      • 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%: 2.23% (Industry Average ROE: 4.5%)
      • 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): 368.99
      • 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: 663.73
      • 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: 3.80 (Industry average Stock P/E: 65.64)
      • 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: N/A
      • 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

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. Ajit KumarChairman & Ind.Director
Mr. M P MehrotraExecutive Vice Chairman
Mr. S K AgarwalManaging Director
Mr. K K SoniDirector - Finance & CFO
Ms. Divya MehrotraNon Executive Director
Mr. D K MehrotraIndependent Director
Mr. Anoop MishraIndependent Director
Mr. Adesh Kumar JainIndependent Director

VLS Finance Ltd. Share Price Update

Share PriceValue
Today₹257.75
Previous Day₹262.15

FAQ

What is the latest fair value of VLS Finance Ltd?

The latest fair value of VLS Finance Ltd is ₹65.03.

What is the Market Cap of VLS Finance Ltd?

The Market Cap of VLS Finance Ltd is 891 Cr..

What is the current Stock Price of VLS Finance Ltd as on 23 April 2024?

The current stock price of VLS Finance Ltd as on 23 April 2024 is 257.

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 ₹322/146.

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

The Stock P/E of VLS Finance Ltd is 3.80.

What is the Book Value of VLS Finance Ltd?

The Book Value of VLS Finance Ltd is 830.

What is the Dividend Yield of VLS Finance Ltd?

The Dividend Yield of VLS Finance Ltd is 0.58 %.

What is the ROCE of VLS Finance Ltd?

The ROCE of VLS Finance Ltd is 2.13 %.

What is the ROE of VLS Finance Ltd?

The ROE of VLS Finance Ltd is 2.05 %.

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