Variman Global Enterprises Limited

Technology — Software - Application · BSE

₹4.50−₹0.09 (−1.96%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Variman Global Enterprises Limited provides information technology (IT) solutions in India.

IndustrySoftware - Application

SectorTechnology

Employees42

Annual revenue₹133 Cr

How does it make money?

Turns over ₹133 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 42 employees supports ₹3.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.17 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.1% 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.

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 +15% while net margin moved +59% 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+15%

Margin effect+59%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.5% is weak

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

51/ 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

40.9x

3Y Median

177.4x

40 monthly readings · mean 185.8x · range 26.2x–424.7x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 77% below its 3y median of 177.4x. 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 147% above the peer median of 16.5x.

vs. its own history

Cheap

177.4x median over 40 months · -77%

vs. sector peers

Expensive

16.5x median of 4 peers · +147%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.1x

PEG

1.84

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 4.1% to 6.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 62% over 3 years, from ₹22 Cr to ₹35 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 65% against revenue up 15% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.1% to 6.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 77% 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?

The debt load needs earnings to hold up
Debt is 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 65% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 147% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 4.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

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

1EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 4.7% CAGR
Latest reported year was 114.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹88 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.11

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

10.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

114.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

444.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

3.6%

Average

Average asset productivity

Operating Margin

7.3%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.8 / 4.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹116 Cr	₹114 Cr	₹109 Cr	₹133 Cr	+4.7%
EBITDA	₹5 Cr	₹5 Cr	₹5 Cr	₹9 Cr	+22.8%
EBITDA Margin	4.1%	4.4%	4.8%	6.6%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹1 Cr	₹3 Cr	+22.2%
EPS	₹0.09	₹0.07	₹0.03	₹0.17	+21.9%
ROE	5.9%	3.3%	1.3%	6.5%	—
ROCE	9.3%	9.1%	6.1%	10.1%	—
Total Debt	₹22 Cr	₹27 Cr	₹32 Cr	₹35 Cr	+17.4%
Free Cash Flow	-₹10 Cr	-₹8 Cr	-₹19 Cr	-₹4 Cr	—

🟢 Revenue has grown at 4.7% a year over 3 years.

🟢 EBITDA has grown at 22.8% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 6.6% over 3 years (+2.5 pts).

🟢 PAT (Net Profit) has grown at 22.2% a year over 3 years.

🟢 EPS has grown at 21.9% a year over 3 years.

🟡 ROE has held roughly flat at 6.5% over 3 years.

🟡 ROCE has held roughly flat at 10.1% over 3 years.

🔴 Total Debt has grown at 17.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹58 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.1%

Corporate Actions

Ex-Dividend Date

09 Sept 2021

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 mixed1 negative4 general

Variman Global Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 10 Sept

Compare with

Equitymaster, 15 Oct

Variman Global passes all 9 AGM resolutions, approves capital raise

scanx.trade, 29 Sept

Variman Global withdraws proposed Ecogenics stake acquisition

scanx.trade, 07 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Indian Railway Catering & Tourism Corporation consolidated net profit declines 0.16% in the June 2026 quarter

Business Standard, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Reganto Enterprises - 14 penny stocks surge up to 125% in a month; 2 turn multibaggers. Did you own any?

The Economic Times, 26 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑