Fundamental Analysis of Vakrangee #StockScoreCard


Vakrangee is a technology driven company, focusing on creating India's largest network of last-mile retail points-of-sale, to potentially enable every Indian to seamlessly benefit from financial inclusion, social inclusion, Digital India, Skill Development, Employment, Government programmes and a wider access to basic goods and services.

Vakrangee - Company Profile

Interesting Facts

  • At the core, vakrangee is a very asset-light franchise based model
  • 44,000 Vakrangee Kendras (Franchise) across 17 states in India
  • World's Third Largest Franchise Network. (1st is "7-Eleven Stores", 2nd is "McDonalds")
  • They need very little capital to grow / expand in coming years
  • ZERO Debt Company!
  • Strong positive cashflow

Fundamental Analysis

1. Growth Story

Vakrangee has an amazing growth story
  • Sales has grown 158% in last five years (from 1500 cr. in Mar'13 to 4000 cr. in Mar'17)
  • Net profit has grown 409% in last five years (from 104 cr. in Mar'13 to 530 cr. in Mar'17)
  • EPS has grown 87% in last one year!

2. Shareholding Pattern

  • Promoter holds 41.74% of the company shares which is amazing!
  • Company has also announced a buy back of 1000 cr.

3. Debts

  • Vakrangee has almost zero debts which is fantastic!
  • In fact, they have requested SEBI for a debt-free company certification.

4. Return on Equity

  • Vakrangee has maintained return on equity of more than 25 consistently for last 5 years! This is an incredible return on equity compared to most large caps.
  • You can check out more info here: link 

5. Valuations

  • Current Stock Price: 205
  • Earnings: 4.66+3.59+3.17+2.87 = 14.29
  • PE Ratio: 205/14.29 = 14.3
  • Personally, we feel it is dramatically undervalued and has huge potential to grow in coming days.

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