⚠ 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.
VMM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | VMM | Market Cap | 58,188 Cr. | Current Price | 124 ₹ | High / Low | 158 ₹ |
| Stock P/E | 97.5 | Book Value | 14.2 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 7.62 % | Face Value | 10.0 ₹ | DMA 50 | 131 ₹ | DMA 200 | 132 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.05 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 41.9 | MACD | -2.84 | Volume | 52,27,058 | Avg Vol 1Wk | 1,53,57,222 |
| Low price | 96.0 ₹ | High price | 158 ₹ | PEG Ratio | 3.01 | Debt to equity | 0.02 |
| 52w Index | 46.1 % | Qtr Profit Var | 40.1 % | EPS | 1.28 ₹ | Industry PE | 39.1 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose from 131 Cr. to 182 Cr. (+40.1%), showing strong growth momentum.
- Margins & Returns: ROCE at 10.1% and ROE at 7.62% indicate modest efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 0.02 reflects negligible leverage, ensuring financial stability.
- Cash Flows: No dividend payout (0.00%) suggests reinvestment focus, limiting immediate shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 97.5 vs industry average of 39.1 → trades at a steep premium.
- P/B Ratio: Current Price / Book Value ≈ 8.7 → significantly above intrinsic value.
- PEG Ratio: 3.01 → signals overvaluation relative to growth.
- Intrinsic Value: Current price (124 ₹) appears expensive compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in mass-market consumer segment with wide reach.
- Strong revenue growth momentum provides competitive positioning.
- Low debt enhances resilience, though weak return ratios limit efficiency appeal.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 110 ₹ – 118 ₹, closer to support levels.
- Long-Term Holding: Suitable for growth-oriented investors, but staggered buying recommended due to high valuation and modest returns.
✅ Positive
- Quarterly PAT growth (+40.1%) shows strong momentum.
- Negligible debt-to-equity ratio (0.02) ensures financial safety.
- FII (+0.12%) and DII (+0.05%) holdings increased, reflecting institutional confidence.
⚠️ Limitation
- High P/E ratio (97.5) compared to industry average.
- PEG ratio of 3.01 signals overvaluation relative to growth.
- Weak ROCE (10.1%) and ROE (7.62%) limit efficiency appeal.
📉 Company Negative News
- Stock trading below both 50 DMA (131 ₹) and 200 DMA (132 ₹), indicating weak momentum.
- RSI at 41.9 and negative MACD (-2.84) suggest bearish technical outlook.
- Low EPS (1.28 ₹) relative to price highlights valuation risk.
📈 Company Positive News
- Quarterly PAT improved significantly from 131 Cr. to 182 Cr.
- Institutional holdings (FII and DII) showed marginal increases.
- Strong trading volumes reflect active investor interest.
🏭 Industry
- Industry P/E at 39.1 indicates sector trades at lower multiples.
- Consumer sector benefits from broad demand and scalability.
- VMM trades at a premium, reflecting growth expectations but weak efficiency.
🔎 Conclusion
VMM shows strong profit growth momentum and negligible debt, but trades at a steep premium with weak efficiency ratios. Entry is advisable near 110 ₹ – 118 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains positioned for growth, though high valuation and modest returns warrant cautious optimism.
I can also outline support and resistance levels with RSI/MACD signals to refine entry timing for VMM if you’d like.