VENTIVE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | VENTIVE | Market Cap | 14,473 Cr. | Current Price | 620 ₹ | High / Low | 845 ₹ |
| Stock P/E | 66.4 | Book Value | 197 ₹ | Dividend Yield | 0.00 % | ROCE | 10.0 % |
| ROE | 5.63 % | Face Value | 1.00 ₹ | DMA 50 | 644 ₹ | DMA 200 | 699 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | -0.07 % | PAT Qtr | 56.8 Cr. | PAT Prev Qtr | 56.0 Cr. |
| RSI | 49.2 | MACD | -5.68 | Volume | 29,912 | Avg Vol 1Wk | 55,790 |
| Low price | 542 ₹ | High price | 845 ₹ | PEG Ratio | 0.99 | Debt to equity | 0.19 |
| 52w Index | 25.6 % | Qtr Profit Var | 72.1 % | EPS | 9.28 ₹ | Industry PE | 28.8 |
📊 Financials: VENTIVE shows weak efficiency with ROCE at 10% and ROE at 5.63%, reflecting poor capital utilization. Debt-to-equity ratio of 0.19 is manageable, but profitability remains modest. EPS of ₹9.28 supports earnings, though quarterly PAT growth (+72.1%) is largely flat sequentially (₹56.8 Cr vs ₹56.0 Cr).
💹 Valuation: Current P/E of 66.4 is significantly above industry average (28.8), indicating steep overvaluation. PEG ratio of 0.99 suggests valuations are somewhat aligned with growth, but premium multiples remain a concern. P/B ratio (~3.15) is elevated relative to fundamentals. Dividend yield is 0.00%, limiting investor returns.
🏢 Business Model & Advantage: VENTIVE operates in a stable sector with moderate demand visibility. Competitive advantage is limited, with efficiency metrics trailing peers. Business model relies on speculative growth rather than strong profitability.
📈 Entry Zone: Attractive accumulation near ₹540–₹580 (closer to support and below DMA 200). Current price (₹620) is slightly above fair entry, with resistance at ₹845.
⏳ Long-Term Holding: High-risk candidate. Suitable only for speculative medium-term trades unless ROE/ROCE improve and dividend policy strengthens. Long-term holding not recommended without efficiency turnaround.
Positive
- PEG ratio of 0.99 suggests valuations aligned with growth
- EPS of ₹9.28 supports profitability
- Quarterly PAT growth (+72.1%)
- Manageable debt-to-equity ratio (0.19)
Limitation
- Weak ROCE (10%) and ROE (5.63%)
- High P/E (66.4 vs industry 28.8)
- Dividend yield of 0.00%
- MACD negative (-5.68) and trading below DMA 200
Company Negative News
- Decline in institutional confidence (FII -0.13%, DII -0.07%)
- Valuation premium raises risk of correction
Company Positive News
- Stable quarterly PAT with marginal improvement
- EPS consistency supports earnings visibility
Industry
- Industry P/E at 28.8 indicates moderate sector valuation
- Peers show stronger efficiency metrics compared to VENTIVE
Conclusion
VENTIVE is a speculative candidate with modest profitability and steep valuations. Entry is safer near ₹540–₹580, with exits recommended near ₹820–₹845 resistance. Long-term holding is not advisable unless ROE/ROCE improve significantly and dividend policy strengthens.