Virtual Galaxy Infotech IPO Review

Virtual Galaxy Infotech is a SaaS product focused company engaged in providing core banking software solution, IT solutions, ERP implementation and customized software solutions development, IT services for the BFSI, ERP, and E-Governance domains. They are primarily involved in the development, customization, installation, and implementation of software applications, along with comprehensive post-implementation support, monitoring, and maintenance services for the delivered solutions.

The operations are conducted by an experienced management team including Avinash Narayanrao Shende, the Chairman, Executive Director and CFO, and Sachin Purushottam Pande, the Managing Director and CTO, having over 26 years of experience in the IT industry. The experienced senior management team has been pivotal in driving the growth of the operations, with many members having been with the company for over 15 years.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 10,137.06 Lakh, ₹ 6,357.66 Lakh, ₹ 5,976.47 Lakh and ₹ 4,343.74 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 4,562.80 Lakh, ₹ 3,143.30 Lakh, ₹ 1,201.20 Lakh, and ₹ 927.39 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,741.51 Lakh, ₹ 1,653.95 Lakh, ₹ 71.77 Lakh, and ₹ 40.22 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 10.06 and post-issue EPS of ₹ 6.65 for FY24. The pre-issue P/E ratio is 14.17x, while the post-issue P/E ratio is 21.35x against the Industry P/E ratio is 142x. The company's ROCE for FY24 is 31.68%, ROE for FY24 is 53.52% and RoNW is 39.95%. The Annualised EPS based on the latest financial data is ₹ 20.22 and PE ratio is 7.02x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Virtual Galaxy Infotech showing listing gains of 14.78 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Virtual Galaxy Infotech Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.