vivanta industries share price target 2024, 2025, 2026, 2028, 2030

Vivanta Industries Ltd. (VIL), established in 2013, has carved a niche in the Indian construction sector. This small-cap company, with a market cap of Rs 50.38 crore (as of February 18, 2024), offers a range of civil construction and engineering services.

As investors contemplate the company’s potential, this analysis aims to illuminate its future trajectory by outlining share price targets for 2024, 2025, 2026, 2028, and 2030.

Vivanta Industries Company Overview

Historical Evolution

Vivanta Industries Ltd. was established on May 31, 2013, in Ahmedabad, Gujarat under the Companies Act of 1956. Initially named Vernes Infotech Pvt. Ltd., it transformed from a private to a public limited company on April 22, 2017. Following this transition, its name was changed from Vernes Infotech Pvt. Ltd. to Vernes Infotech Ltd., and then finally to Vivanta Industries Ltd. on April 27, 2017​​. Vivanta Industries went public, listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company’s strategic acquisitions and investments in advanced technology have enabled it to become a leading player in the Indian construction sector.

Financial Indicators

  • P/E Ratio: 43.71 (High, Indicates overvalued)
  • Return on Assets (ROA): 4.66% (Bad sign for future performance)
  • Current Ratio: 1.03 (Low)
  • Return on Equity (ROE): 9.71% (Good)
  • Debt to Equity Ratio: 0.27 (Low Debt)
  • Inventory Turnover Ratio: 0 (Inefficient inventory management)
  • Sales Growth: 1,876.83% (Fair)
  • Operating Margin: 8.03%
  • Dividend Yield: 0.74%

vivanta industries share historical movement

vivanta industries share historical price

Recent Developments

  • Drone Expansion: In September 2023, Vivanta signed a preliminary agreement (MOU) with Vivanta Drone Research Centre Tanzania (VDRCTL). This paves the way for a 50% stake acquisition in VDRCTL, allowing Vivanta to establish a drone assembly line and R&D facility in Tanzania.
  • CFO Transition: Kuldip Parekh, the current CFO, is stepping down on March 4th, 2024. Vikas Patel will succeed him as the new CFO starting March 5th, 2024.
  • Financial Performance: Vivanta Industries recently reported their financial results. For the quarter ending December 31, 2023, they had a total income of Rs 10.08 crore and a profit of Rs 0.28 crore. Looking at the full year ending March 31, 2023, their total income was Rs 24.82 crore with a profit of Rs 1.30 crore.

Role in the construction Sector

Vivanta Industries Limited (VIL) is a full-service civil construction and engineering partner, guiding your project from conception to completion. We take the complexity out of construction by offering a wide range of services, including:

  • Site Selection & Planning: We handle location analysis, market assessment, and project conceptualization to ensure your project thrives.
  • Land Acquisition: Our team streamlines land procurement with title search, legal clearances, and permitting expertise.
  • Engineering & Design: VIL provides land surveying, project design, and fiscal studies to lay a solid foundation for your build.
  • Project Management: We oversee project implementation, ensuring quality, budget adherence, and timely completion.

Vivanta Industries Share Price Analysis

Current Share Price Dynamics

Vivanta Industries Ltd. is currently trading at ₹4.03, which is down 0.75% from the previous day. The stock has fallen 41.85% from its 52-week high of ₹6.9.

Some technical indicators suggest that the stock may be oversold, such as the MFI being below 30. However, other indicators are bearish, such as the MACD being below its signal and center line. The stock is also trading below all of its moving averages.

Technical Analysis

Overall Trend: Neutral to slightly bearish

Key Indicators:

  • Price: Currently trading at ₹4.03, down 41.85% from its 52-week high.
  • Moving Averages: Price is below all short-term and long-term SMAs (8/8). This indicates a downtrend.
  • Oscillators:
    • RSI (14): At 32.4, which is considered oversold territory. This suggests a potential short-term bounce.
    • MFI: At 20.3, also oversold territory, supporting the possibility of a price rebound.
    • MACD: Below its signal line and center line, indicating a bearish trend.
    • Most other oscillators: In bearish zone.

Volume: The average weekly delivery volume is 77.01%, which is relatively high. This suggests strong participation from investors.

Support and Resistance:

  • Current Price: ₹4.03
  • Pivot Point: ₹3.99
  • Support Levels: ₹3.94, ₹3.84, ₹3.79
  • Resistance Levels: ₹4.09, ₹4.14, ₹4.24

Beta: Low volatility (Beta < 1 for all timeframes).

Shareholding Structure of Vivanta Industries

Investor TypePercentage
Promoters11.98
Domestic institutional investors0.00
Foreign Institutional Investors2.92
Public & Other84.09
Government Holding0.00
Corporate Holding1.02

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

Financial Measure2023
Price (Rs)4.03
P/E Ratio43.71
Sales Growth (%)1,876.83
Profit Growth (%)266.66
ROE (%)9.71
ROCE (%)9.82
Debt/Equity Ratio0.27
Current Ratio1.03
Inventory Turnover Ratio0

Evaluation of Financial Health and Stability

Vivanta Industries has shown significant sales growth (1,876.83%) in the past year. However, the company’s profitability ratios (low ROE, ROA) are weak, and it has a high P/E ratio, indicating that the stock may be overvalued. The company also has a low current ratio, which could raise concerns about its short-term liquidity.

Strengths

  • High Sales Growth: Vivanta Industries has experienced impressive sales growth in recent years.
  • Healthy Interest Coverage Ratio: The company has a healthy interest coverage ratio, indicating its ability to meet its debt obligations.
  • Efficient Cash Conversion Cycle: The company has a short cash conversion cycle, which is positive for cash flow.

Weaknesses

  • Poor Profitability Ratios: Vivanta Industries has low ROE and ROA ratios, indicating that it is not generating a good return on its assets or equity.
  • High P/E Ratio: The company’s P/E ratio is high, suggesting that the stock may be overvalued.
  • Low Current Ratio: The company’s current ratio is low, which could raise concerns about its ability to pay its short-term liabilities.
  • Declining Promoter Stake: The promoter stake in the company has decreased significantly in recent years.
  • Low Inventory Turnover Ratio: The company’s inventory turnover ratio is low, suggesting that it may be holding onto inventory for too long.

Vivanta Industries Share Price Targets (2024-2030)

vivanta industries share price target graph
vivanta industries share price target graph
YearLow Growth (%)High Growth (%)
2024₹ 4.03₹ 4.80
2025₹ 5.04₹ 6.05
2026₹ 6.16₹ 8.32
2027₹ 7.43₹ 11.03
2028₹ 8.87₹ 14.19
2029₹ 10.52₹ 17.82
2030₹ 12.38₹ 22.02

Vivanta Industries Share Price Target 2024

Vivanta Industries’ share price target for 2024 is projected to range between ₹4.03 and ₹ 4.80, depending on the company’s future growth trajectory. This forecast is based on an analysis of the company’s current financial performance, historical growth trends, and potential future scenarios.

Several factors could influence which scenario unfolds. Vivanta Industries’ future performance will likely hinge on its ability to:

  • Boost profitability: The company’s current financial ratios suggest a need for improvement in profitability. Focusing on increasing sales margins and controlling debt levels will be crucial for attracting investors.
  • Capitalize on industry growth: The engineering and construction sector in India is expected to witness significant growth in the coming years, driven by factors like urbanization and infrastructural development projects. Vivanta Industries’ ability to tap into this growth will significantly impact its future.
  • Maintain investor confidence: Strategic partnerships, new product offerings, and a commitment to operational efficiency can all contribute to a positive investor sentiment and drive the share price upwards.

Vivanta Industries Share Price Target 2025

Vivanta Industries, a company currently trading at ₹4.03 (as of March 7, 2024), presents a range of potential share price targets for 2025 based on different growth scenarios. Analysts predict a potential increase ranging from ₹5.04 for a low-growth scenario to ₹6.05 for a high-growth scenario.

There are several factors that could propel Vivanta Industries’ share price upwards in 2025:

  • Past Performance: The company has shown impressive sales growth in the past year (figures not provided). This positive sales trajectory could continue into 2025, boosting investor confidence.
  • Industry Outlook: The future prospects of the engineering and construction sector, in which Vivanta Industries operates, will play a significant role. If the sector experiences strong growth, it could positively impact the company’s performance and share price.
  • Focus on Improvement: The recent appointment of a CFO might signify a shift towards a more financially focused management approach. Improved financial performance could attract more investors and drive the share price up.

For 2025, the anticipated increase to ₹5.04 reflects a positive outlook on Vivanta Industries’ growth potential. This uniform growth projection implies a belief in the company’s ability to sustain its growth momentum. Factors likely contributing to this optimism include successful market penetration, particularly in promising sectors and geographies, and robust financial performance underpinning the stock’s upward trajectory.

Vivanta Industries Share Price Target 2026

Vivanta Industries’ share price target for 2026 is projected to range between ₹6.16 and ₹8.32, depending on the company’s future growth trajectory. This forecast is based on an analysis of the company’s current financial performance, historical growth trends, and potential future scenarios.

Several factors could influence Vivanta Industries’ share price in unexpected ways:

  • Industry Outlook: The overall health and growth prospects of the engineering and construction sector will play a significant role.
  • Market Conditions: Broader market trends, interest rates, and economic fluctuations can impact investor sentiment and ultimately the share price.
  • Company Performance: The company’s ability to execute its strategic plans, manage costs, and achieve profitability targets will directly affect the share price.
  • Unforeseen Events: Mergers, acquisitions, legal issues, or unexpected events can significantly impact the share price.

Vivanta Industries Share Price Target 2027

Vivanta Industries’ share price target for 2027 presents an interesting proposition for potential investors. Based on various growth projections, the company’s share price could range from ₹7.43 in a low-growth scenario to a high of ₹11.03 in a high-growth scenario.

Several factors can influence Vivanta Industries’ share price trajectory by 2027:

  • Company Performance: The company’s future sales, profitability, and overall financial performance will significantly impact the share price. Investors will closely monitor these metrics to assess the company’s growth potential.
  • Industry Outlook: The health of the engineering and construction sector will play a role. Positive industry trends and growth projections will boost investor confidence in Vivanta Industries.
  • Market Conditions: Overall market conditions, interest rates, and economic factors can affect the stock price. A strong and stable market environment could favor Vivanta Industries’ share price.
  • Investor Sentiment: Positive investor sentiment towards Vivanta Industries and the sector can drive the share price up. Conversely, negative sentiment could lead to a decline.
  • Unforeseen Events: Mergers, acquisitions, legal issues, or unexpected events can significantly impact the share price.

Vivanta Industries Share Price Target 2028

In 2028, Vivanta Industries’ share price is projected to range between ₹8.87 and ₹14.19, reflecting the company’s future prospects and the potential impact of various growth factors.

It’s important to remember that these are just potential forecasts, and the actual share price of Vivanta Industries in 2028 could be higher or lower. Several factors will influence its future performance, including:

  • Company Performance: Future sales, profitability, and overall business performance will significantly impact the share price.
  • Industry Outlook: The growth prospects of the engineering and construction sector will influence investor sentiment.
  • Market Conditions: Overall market conditions, interest rates, and economic factors can affect the stock price.
  • Investor Sentiment: Positive or negative investor sentiment towards the company and the sector can drive the share price up or down.
  • Unforeseen Events: Mergers, acquisitions, legal issues, or unexpected events can significantly impact the share price.

Vivanta Industries Share Price Target 2029

Based on our analysis, Vivanta Industries’ share price in 2029 could potentially range from ₹10.52 to ₹17.82.

Several factors could contribute to a rise in Vivanta Industries’ share price by 2029:

  • Capitalizing on Past Growth Momentum: The company’s impressive sales growth of 1876.83% in the past year indicates strong market potential. Maintaining or exceeding this growth trajectory can significantly boost investor confidence and propel the share price upwards.
  • Improved Financial Performance: While current profitability ratios might be low, a focus on financial improvement, as suggested by the recent appointment of a CFO, could lead to increased profitability and margins, making Vivanta Industries a more attractive investment proposition.
  • Industry Outlook: The growth prospects of the engineering and construction sector will significantly influence Vivanta Industries’ performance. A positive industry outlook with rising demand for the company’s offerings can translate to higher share prices

Vivanta Industries Share Price Target 2030

Based on a comprehensive analysis, Vivanta Industries’ share price in 2030 is projected to fall within a range of ₹10.52 and ₹22.02.

Several key factors will influence which end of the spectrum Vivanta Industries lands on:

  • Company Performance: Future sales growth, profitability, and overall financial health will significantly impact the share price. A consistent improvement in these metrics will bolster investor confidence and drive the price upwards.
  • Industry Outlook: The future prospects of the engineering and construction sector will play a crucial role. If the sector experiences robust growth, it will positively impact Vivanta Industries’ share price. Conversely, a stagnant or declining sector could dampen investor sentiment and limit price appreciation.
  • Market Conditions: Overall market sentiment, interest rates, and economic factors can significantly influence the share price. A strong and bullish market environment can propel the share price higher, while economic downturns or rising interest rates could put downward pressure on the price.
  • Investor Sentiment: Positive investor perception towards the company’s future prospects and the industry can drive significant price increases. Conversely, negative sentiment can lead to a decline in share price.

Comparative Analysis with Competitors

CompanyPriceMarket Cap (Cr.)P/EP/BEPS (Rs.)ROE (%)ROCE (%)
Vivanta Industries₹4.0350.3843.712.990.099.719.82
Akash Infra-Projects₹37.4063.070.81-1.565.111.02
Madhucon Projects₹8.4562.360.12-0.41-6.19-0.30
Julien Agro Infra₹31.0661.471.480.03208.34202.17
Consolidated Constn.₹1.5059.78-2.89-5.850.44
ARSS Infra Project₹24.2055.030.580.14-53.54
Expo Gas Containers₹23.2544.262.08-1.12-10.353.58
VSF Projects₹63.8041.960.98
Sonu Infratech₹53.4041.6115.221.853.4816.3612.94
Shreeshay Engineers₹30.3639.61197.111.750.150.890.82

SWOT analysis

Strengths

  • Healthy Interest Coverage Ratio (193.78): This indicates Vivanta’s ability to service its debt obligations without difficulty.
  • Efficient Cash Conversion Cycle (4.50 days): This signifies Vivanta’s efficiency in managing its working capital.

Weaknesses

  • Poor ROE (4.23%) and ROCE (4.04%): These low ratios suggest that Vivanta is generating inadequate returns on its equity and invested capital.
  • Low EBITDA Margin (-6.44%): This indicates that a significant portion of Vivanta’s revenue is consumed by its operating expenses, limiting profitability.
  • High P/E Ratio (43.71): This suggests that Vivanta’s stock price might be inflated relative to its earnings potential.
  • Decreasing Promoter Stake: The significant decrease in promoter holding from 39.14% to 11.98% raises concerns about their confidence in the company’s future prospects.

Opportunities

  • Capitalize on High Sales Growth: Vivanta’s impressive sales growth presents an opportunity to leverage economies of scale and improve profitability margins.
  • Reduce Operating Expenses: By streamlining operations and identifying cost-saving measures, Vivanta can enhance its EBITDA margin.

Threats

  • Competition: The engineering and construction industry is likely competitive. Vivanta needs to maintain a competitive edge to sustain its high sales growth.
  • Debt Management: Though the current debt level is manageable, excessive debt can restrict future growth and financial flexibility.

Future Outlook for Vivanta Industries Share

Expert Opinions and Market Sentiments

Analyst Opinion

Based on the financial ratios and recent news, Vivanta Industries has some positive aspects like a healthy interest coverage ratio and efficient cash conversion cycle. However, the company also has concerning factors such as poor ROE and ROCE, a low EBITDA margin, and a high EV/EBITDA. The significant decrease in promoter stake also raises questions.

Market Sentiments

  • The stock price has increased slightly today.
  • The company’s financials show mixed signals, with some strengths but also some weaknesses.
  • The high sales growth is positive, but the low ROE and ROCE are negative indicators.
  • The decreasing promoter stake may raise concerns about the company’s future prospects.

Growth Drivers and Challenges

Growth Drivers

  • High Revenue Growth: Vivanta Industries has reported a revenue growth of 1,876.83% in the last year. This indicates a significant expansion of the company’s business operations.
  • Improved Profitability: The company’s profitability has also improved, with a net profit growth of 266.66% in the last year.
  • Healthy Interest Coverage Ratio: Vivanta Industries has a healthy interest coverage ratio of 193.78, indicating its ability to meet its debt obligations.
  • Efficient Cash Conversion Cycle: The company has an efficient cash conversion cycle of 4.50 days, which suggests it effectively manages its working capital.

Challenges

  • Poor ROE and ROCE: Vivanta Industries has a low ROE of 4.23% and ROCE of 4.04% over the past 3 years. This indicates that the company is not generating a good return on its equity and invested capital.
  • Low EBITDA Margin: The company has a low EBITDA margin of -6.44% over the past 5 years. This suggests that the company is struggling to generate profits from its core operations.
  • Decreasing Promoter Stake: The promoter stake in Vivanta Industries has decreased from 39.14% to 11.98% in the past year. This could indicate a lack of confidence in the company’s future prospects from the promoters.
  • High Valuation Ratios: Vivanta Industries is trading at a high PE ratio of 43.71, which suggests that the stock may be overvalued.

Risk Assessment of Vivanta Industries Share

Comprehensive Risk Analysis

  • Potential Overvaluation: The high P/E ratio suggests the stock might be overvalued.
  • Low Profitability: The company’s ROE has been low in recent years.
  • Liquidity Concerns: The current ratio is low, raising concerns about the company’s ability to meet its short-term obligations.
  • Inventory Management Issues: The inventory turnover ratio suggests the company might be holding onto excess inventory.

Mitigation Strategies

  • Improve Profitability: Vivanta should focus on increasing its profitability margins by controlling operating expenses and exploring new revenue streams. This could involve cost-cutting measures, renegotiating contracts with vendors, or expanding into higher-margin markets.
  • Enhance Return on Equity (ROE): Strategies to improve ROE include retaining more earnings for reinvestment in the business, reducing the company’s outstanding share capital, or increasing net profits.
  • Strengthen Capital Structure: Vivanta should maintain a healthy debt-to-equity ratio to avoid financial risks associated with excessive debt. This might involve reducing debt through generating higher cash flow or issuing new equity.
  • Improve Inventory Management: The zero inventory turnover ratio indicates inefficiencies. Implementing a robust inventory management system can optimize inventory levels and improve working capital management.
  • Transparency and Investor Confidence: Vivanta should prioritize open communication with investors and address concerns regarding the decrease in promoter holding. Regularly disclosing financial results and future plans can rebuild trust and investor confidence.

Conclusion

Vivanta Industries Limited has demonstrated resilience, innovation, and a commitment to sustainability in the Indian construction sector. The company’s strong financial performance, favorable market dynamics, and strategic initiatives position it as a promising investment opportunity. Vivanta Industries’ share price is expected to experience steady growth, driven by robust demand, operational efficiency, and a diverse product portfolio.

References and Citations

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