Vakrangee Limited

Technology — Information Technology Services · NSE

₹6.09+₹1.01 (+19.88%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Vakrangee Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vakrangee Limited, a technology company, provides e-commerce, white label ATM, financial, and logistics services in India. It operates through two segments, Vakrangee Kendra and Sale of Automated Teller Machines (ATM') Products/Services.

IndustryInformation Technology Services

SectorTechnology

Employees235

Annual revenue₹255 Cr

How does it make money?

Turns over ₹255 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 235 employees supports ₹1.08 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.1%

Net margin4.4%

Revenue / employee₹1.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 6.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE6.8%

ROE6.2%

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved +768% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect+768%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.60 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

87.0x

3Y Median

254.5x

40 monthly readings · mean 825.1x · range 51.4x–3015.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 66% below its 3y median of 254.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 426% above the peer median of 16.5x.

vs. its own history

Cheap

254.5x median over 40 months · -66%

vs. sector peers

Expensive

16.5x median of 4 peers · +426%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

87.0x

P/B

2.90x

EV/EBITDA

18.6x

PEG

0.70

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Debt is being paid down
Total debt is down 93% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 0.8% to 6.2%.
Return on capital is rising
ROCE has improved from 2.7% to 6.8%.
Valuation below its historical average
At 87.0x the stock trades 66% below its own median of 254.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 632% against revenue growth of 29% — stock may not be moving.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 1.71x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 632% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 93% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 66% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.71x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 426% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 13.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.9% CAGR
Latest reported year was -18.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹660 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

87.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

6.2%

Weak

Weak capital efficiency

ROCE

6.8%

Weak

Low return on total capital employed

Debt/Equity

1.71x

High

High leverage

Revenue Growth (YoY)

-18.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-33.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹6.09

Operating Margin

3.7%

Weak

Thin margins leave little room for error

Net Margin

4.4%

Average

Average bottom-line conversion

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.2 / 5.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

76.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹197 Cr	₹213 Cr	₹255 Cr	₹255 Cr	+8.9%
EBITDA	₹24 Cr	₹28 Cr	₹27 Cr	₹33 Cr	+11.2%
EBITDA Margin	12.3%	13.3%	10.6%	13.1%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹6 Cr	₹11 Cr	+123.8%
EPS	₹0.01	₹0.04	₹0.06	₹0.1	+115.4%
ROE	0.8%	2.7%	3.2%	6.2%	—
ROCE	2.7%	7.2%	4.8%	6.8%	—
Total Debt	₹58 Cr	₹12 Cr	₹5 Cr	₹4 Cr	-59.6%
Free Cash Flow	-₹50 Cr	₹24 Cr	-₹33 Cr	₹45 Cr	—

🟢 Revenue has grown at 8.9% a year over 3 years.

🟢 EBITDA has grown at 11.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.1% over 3 years.

🟢 PAT (Net Profit) has grown at 123.8% a year over 3 years.

🟢 EPS has grown at 115.4% a year over 3 years.

🟢 ROE has risen from 0.8% to 6.2% over 3 years (+5.4 pts).

🟢 ROCE has risen from 2.7% to 6.8% over 3 years (+4.1 pts).

🟢 Total Debt has shrunk at 59.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹50 Cr to ₹45 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹312 Cr

Total Liabilities

₹119 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹41 Cr

Operating Cash Flow

₹61 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

4.0%

Insider Holding

40.3%

Corporate Actions

Ex-Dividend Date

20 Sept 2024

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive2 mixed3 general

Vakrangee Share Price rises 15.52%: price action, metrics

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Vakrangee (VAKRANGEE) Share/Stock Price Live, NSE

TechGraph, 12 Oct

Vakrangee Scam: How Its Outlet Network Became a Credibility Crisis

HDFC Sky, 09 Sept

Vakrangee Upper Circuit Today: Price, Data and Peers

Univest, 16 Oct

Vakrangee (NSE:VAKRANGEE) stock falls 11% in past week as five-year earnings and shareholder returns continue downward trend

Simply Wall Street, 22 JanResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Vakrangee standalone net profit rises 18.51% in the March 2026 quarter

Business Standard, 29 AprResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-18.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong13.3/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.3/15

🔴RiskHigh3.9/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 11%13.1%
✓Revenue growth stays above 7% a year8.9% CAGR
✓Free cash flow remains positive₹45 Cr
✓Debt / EBITDA stays below 2x0.1x
✗ROCE stays above 8%6.8%