⚠ 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: 3.2
| Stock Code | VENTIVE | Market Cap | 15,605 Cr. | Current Price | 667 ₹ | High / Low | 845 ₹ |
| Stock P/E | 71.6 | Book Value | 197 ₹ | Dividend Yield | 0.00 % | ROCE | 10.0 % |
| ROE | 5.63 % | Face Value | 1.00 ₹ | DMA 50 | 712 ₹ | DMA 200 | 727 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | -0.01 % | PAT Qtr | 56.8 Cr. | PAT Prev Qtr | 56.0 Cr. |
| RSI | 37.1 | MACD | -22.1 | Volume | 82,549 | Avg Vol 1Wk | 67,458 |
| Low price | 619 ₹ | High price | 845 ₹ | PEG Ratio | 1.07 | Debt to equity | 0.19 |
| 52w Index | 21.3 % | Qtr Profit Var | 72.1 % | EPS | 9.28 ₹ | Industry PE | 28.4 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT remained flat (56.8 Cr. vs 56.0 Cr.), showing limited growth. EPS at 9.28 ₹ is modest.
- Margins & Returns: ROCE at 10.0% and ROE at 5.63% indicate weak efficiency and low shareholder returns.
- Debt: Debt-to-equity ratio of 0.19 is manageable, but profitability concerns overshadow balance sheet stability.
- Cash Flow: Stable operations, but low returns limit cash generation strength.
💹 Valuation
- P/E Ratio: 71.6 vs Industry PE of 28.4 → Significantly overvalued relative to peers.
- P/B Ratio: Current Price 667 ₹ vs Book Value 197 ₹ → High premium.
- PEG Ratio: 1.07 → Fair valuation relative to growth, but earnings remain weak.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in technology and engineering services with niche offerings.
- Moderate scale but lacks strong profitability metrics compared to peers.
- Low debt provides resilience, but weak ROE/ROCE limits competitive strength.
📈 Technicals & Entry Zone
- RSI at 37.1 → Near oversold territory, potential accumulation zone.
- MACD negative (-22.1) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 640–660 ₹.
- Long-Term Holding: Risky due to weak fundamentals; suitable only for speculative investors.
✅ Positive
- Low debt-to-equity ratio ensures financial stability.
- PEG ratio near fair value suggests potential if growth improves.
- RSI indicates oversold levels, offering accumulation opportunity.
⚠️ Limitation
- High P/E ratio compared to industry peers.
- Weak ROCE and ROE highlight poor efficiency.
- Flat quarterly PAT growth shows limited earnings momentum.
📉 Company Negative News
- FII holdings decreased by 0.10% and DII holdings by 0.01%, showing reduced institutional confidence.
- Stock has fallen significantly from its 52-week high of 845 ₹ to current levels.
📈 Company Positive News
- Quarterly PAT remained stable, showing resilience despite weak growth.
- 52-week performance up 21.3%, reflecting investor interest despite volatility.
🏭 Industry
- Industry PE at 28.4 suggests sector trades at lower multiples.
- VENTIVE commands premium valuation despite weak fundamentals, driven by speculative interest.
🔎 Conclusion
VENTIVE shows resilience with low debt and stable earnings, but weak efficiency metrics and high valuations limit attractiveness. Entry is favorable near 640–660 ₹ for speculative investors, but long-term holding carries risk due to poor ROE/ROCE and limited growth momentum. Caution is advised for conservative investors.