⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VENTIVE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | VENTIVE | Market Cap | 16,860 Cr. | Current Price | 725 ₹ | High / Low | 845 ₹ |
| Stock P/E | 86.8 | Book Value | 197 ₹ | Dividend Yield | 0.00 % | ROCE | 10.0 % |
| ROE | 5.63 % | Face Value | 1.00 ₹ | DMA 50 | 737 ₹ | DMA 200 | 732 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | -0.01 % | PAT Qtr | 56.0 Cr. | PAT Prev Qtr | 48.1 Cr. |
| RSI | 44.0 | MACD | 0.60 | Volume | 40,113 | Avg Vol 1Wk | 1,11,979 |
| Low price | 523 ₹ | High price | 845 ₹ | PEG Ratio | 1.30 | Debt to equity | 0.19 |
| 52w Index | 62.8 % | Qtr Profit Var | 170 % | EPS | 8.16 ₹ | Industry PE | 32.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 48.1 Cr. to 56 Cr. (+170% YoY), showing growth momentum, though absolute earnings remain modest.
- Margins & Returns: ROCE at 10.0% and ROE at 5.63% indicate weak efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 0.19 reflects manageable leverage.
- Cash Flows: No dividend payout (0.00%) suggests reinvestment strategy, but limits shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 86.8 vs industry average of 32.6 → significantly overvalued.
- P/B Ratio: Current Price / Book Value ≈ 3.68 → moderately above fair value.
- PEG Ratio: 1.30 → indicates valuation is stretched but supported by growth.
- Intrinsic Value: Current price (725 ₹) appears expensive relative to fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in technology-driven solutions, with growth potential in niche markets.
- Moderate leverage provides financial flexibility.
- Weak return ratios limit competitive edge compared to industry leaders.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 680 ₹ – 700 ₹, near DMA support levels.
- Long-Term Holding: Suitable for growth-oriented investors, but high valuation and weak returns suggest cautious allocation.
✅ Positive
- Quarterly PAT growth (+170% YoY) shows strong momentum.
- Manageable debt-to-equity ratio (0.19).
- Stock trading close to DMA 200, offering technical support.
⚠️ Limitation
- High P/E ratio (86.8) compared to industry average.
- Weak ROCE (10%) and ROE (5.63%) limit efficiency appeal.
- No dividend yield reduces shareholder returns.
📉 Company Negative News
- Stock trading below 50 DMA (737 ₹), showing weak near-term momentum.
- Decline in both FII (-0.10%) and DII (-0.01%) holdings reflects reduced institutional confidence.
📈 Company Positive News
- Quarterly PAT improved sequentially from 48.1 Cr. to 56 Cr.
- MACD at 0.60 suggests neutral-to-positive technical outlook.
🏭 Industry
- Industry P/E at 32.6 indicates sector trades at lower multiples.
- Technology-driven businesses benefit from innovation and demand cycles.
- VENTIVE trades at a significant premium, reflecting growth expectations but weak returns.
🔎 Conclusion
VENTIVE shows strong profit growth momentum but trades at a steep premium with weak efficiency ratios. Entry is advisable near 680 ₹ – 700 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains positioned for growth, but high valuation and modest returns warrant cautious optimism.
I can also map out support and resistance levels with RSI/MACD signals to refine entry timing for VENTIVE if you’d like.