VENTIVE - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.7
| Stock Code | VENTIVE | Market Cap | 18,029 Cr. | Current Price | 772 ₹ | High / Low | 845 ₹ |
| Stock P/E | 82.7 | Book Value | 197 ₹ | Dividend Yield | 0.00 % | ROCE | 10.0 % |
| ROE | 5.63 % | Face Value | 1.00 ₹ | DMA 50 | 740 ₹ | DMA 200 | 733 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | -0.01 % | PAT Qtr | 56.8 Cr. | PAT Prev Qtr | 56.0 Cr. |
| RSI | 59.8 | MACD | 5.55 | Volume | 3,23,226 | Avg Vol 1Wk | 1,41,307 |
| Low price | 523 ₹ | High price | 845 ₹ | PEG Ratio | 1.24 | Debt to equity | 0.19 |
| 52w Index | 77.5 % | Qtr Profit Var | 72.1 % | EPS | 9.28 ₹ | Industry PE | 31.0 |
📊 Analysis: VENTIVE trades at a very high P/E of 82.7 compared to the industry average of 31.0, indicating stretched valuations. ROE (5.63%) and ROCE (10.0%) are modest, showing limited capital efficiency. EPS of ₹9.28 is weak relative to valuation, and dividend yield is 0%, offering no income support. While PAT growth is stable (₹56.8 Cr vs ₹56.0 Cr) and quarterly profit variation (+72.1%) looks strong, sustainability remains uncertain. PEG ratio of 1.24 suggests moderate growth-adjusted valuation. Technicals show RSI at 59.8 (neutral to slightly overbought) and MACD positive (5.55), indicating short-term bullishness but limited upside.
💰 Entry Price Zone: Ideal accumulation zone is between ₹700 – ₹730, closer to DMA200 (₹733), offering margin of safety below current levels.
⏳ Exit / Holding Strategy: If already holding, consider partial exit near ₹820 – ₹845 (recent high zone). Long-term holding is not advisable unless ROE/ROCE improve significantly and earnings growth accelerates. Current fundamentals suggest cautious medium-term holding rather than aggressive long-term compounding.
Positive
- 📈 Quarterly profit variation (+72.1%) shows strong short-term momentum.
- 🏦 Low debt-to-equity (0.19), ensuring financial stability.
- 💡 Technicals (MACD positive) indicate short-term bullishness.
Limitation
- ⚠️ Extremely high P/E (82.7) vs industry average (31.0).
- 📉 Weak ROE (5.63%) and ROCE (10.0%).
- 🚫 No dividend yield (0%), limiting investor returns.
- 🔻 EPS (₹9.28) is modest relative to valuation.
Company Negative News
- 📉 Institutional confidence weak with FII (-0.10%) and DII (-0.01%) reductions.
- 🚫 Valuations remain stretched compared to peers.
Company Positive News
- ✅ PAT growth stable (₹56.8 Cr vs ₹56.0 Cr).
- 💡 Strong quarterly profit variation (+72.1%).
Industry
- 🏭 Industry PE ~31.0, much lower than VENTIVE’s valuation.
- 🌍 Sector growth depends on innovation and demand recovery, but VENTIVE lags peers in efficiency metrics.
Conclusion
VENTIVE is overvalued with weak ROE/ROCE and no dividend support, making it a risky candidate for long-term investment. Ideal entry is near ₹700–₹730 for margin of safety. Existing holders should consider partial exit near ₹820–₹845 unless profitability improves. The stock is better suited for cautious investors focusing on short-term momentum rather than long-term compounding.
Selva, since you’re benchmarking systematically, would you like me to prepare a peer overlay comparison (VENTIVE vs other mid-cap industrial/tech peers) so you can evaluate sector rotation and basket positioning more clearly?