Valiant Communications Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Valiant Communications Ltd trades at ₹946, in a confirmed uptrend and 63 weeks into that stage. That is +1.0% against its own 200-day average. It sits at 49% of a 52-week range of ₹657 to ₹1,244. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (5 weeks and counting).

Today the stock is in a confirmed uptrend — week 63 of stage 2, confirmed. At ₹946 it trades +1.0% versus its 200-day average and sits at 49% of its 52-week range (₹657–₹1,244).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +1,848% while the NIFTY 500 moved +282% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (5 weeks and counting; last ahead the week of 2026-07-01) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Valiant Communications Ltd trades at 45.8× P/E, near the bottom of its own range — cheaper only 30% of the time. Its long-run median P/E is 60.8×, measured across 9.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 45.8× is near the bottom of its own range — cheaper only 30% of the time, against a long-run median of 60.8× measured over 9.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +150.7% against a +53.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +86.8%/yr price move, ~+68.4%/yr came from earnings growth and ~+18.4 pp from the multiple (expanding); over 10y, of the +34.5%/yr price move, ~+58.6%/yr came from earnings growth and ~−24.1 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Valiant Communications Ltd reads as consistent on its fundamental arc. Consistent — revenue and profit growth have stayed positive through the window, with ROCE at 40.0% and holding. The read is built from 10 quarters across 3 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

67.9/100 — rank 3 of 18 in Telecom Services · 71% evidence confidence

Valiant Communications Ltd scores 67.9 out of 100 against the 18 companies it is compared with in Telecom Services, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 29.9 + 20.3 + 10.4 + 7.3 = 67.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Valiant Communications Ltd reported ₹24.2 Cr of revenue in the Mar 26 quarter, +50.4% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 19.8% a year. The last full year, FY26, came in at ₹85.0 Cr. The last four reported quarters add to ₹84.9 Cr.

FY26 revenue came in at ₹85.0 Cr (+66.7% on the year), capping 10 years at 19.8% compound. The latest quarter (Mar 26) printed ₹24.2 Cr, +50.4% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +77.0% growth against the decade's 19.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +66.9% over the last 4 quarters against +35.3%/yr over the last 8 — accelerating; TTM profit +151.5% vs +97.6%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Valiant Communications Ltd's operating margin is 38.2% in the Mar 26 quarter, +3.6 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged −23.0% to 36.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 38.2%, +3.6 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −23.0%–36.0%, and FY26's 36.0% is the top of that band — a record year.

Why the margin moved: operating margin went +3.6 pp year on year while gross margin went +0.1 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Valiant Communications Ltd earned ₹8.1 Cr of net profit in the Mar 26 quarter, +92.9% year on year. Full-year FY26 profit was ₹24.0 Cr. That is 33.6% of the quarter's revenue. The same quarter a year earlier earned ₹4.2 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹8.1 Cr, +92.9% year on year. On the full year, FY26 printed ₹24.0 Cr (+140.0%).

Why profit moved: revenue contributed +50.4% and the margin +3.6 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +77.5% vs revenue +77.0%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 90% of Valiant Communications Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹32.0 Cr of operating cash against ₹24.0 Cr of profit. After ₹7.0 Cr of capital spending, ₹25.0 Cr was left as free cash.

FY26: operating cash of ₹32.0 Cr against reported profit of ₹24.0 Cr, leaving free cash of ₹25.0 Cr after ₹7.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 90% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 90%: the cash cycle tightened 213 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Valiant Communications Ltd's cash conversion cycle runs 172 days in FY26, down from 385 days in FY21. Capital spending ran ₹13.0 Cr over the last 3 years. At FY26 sales of ₹85.0 Cr each day of that cycle holds about ₹0.2 Cr, so roughly ₹40.0 Cr sits inside the business at any moment.

FY26: debtors at 81 days, inventory at 161 days — roughly 5.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 172 days, tighter than FY21's 385.

The full loop: cash goes out to suppliers and production on day 0; stock waits 161 days to sell; customers pay about 81 days after that; and suppliers themselves are paid at 71 days — netting out to the 172-day cycle.

In money terms: at FY26 sales of ₹85.0 Cr, each day of the cycle holds about ₹0.2 Cr — so the 172-day loop keeps roughly ₹40.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹13.0 Cr over the last 3 fiscal years against ₹8.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Valiant Communications Ltd earns a ROCE of 40% in FY26. That is up from a trough of −14% in FY22. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 28.2% net margin on 0.76× asset turns.

FY26 ROCE is 40%, recovered from a FY22 trough of −14% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 28.2% net margin × 0.76× asset turns × 1.17× balance-sheet leverage ≈ 25.1% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Valiant Communications Ltd carries ₹3.0 Cr of borrowings against ₹96.0 Cr of equity in FY26, a debt-to-equity of 0.03. Over 5 years borrowings went from ₹0.0 Cr to ₹3.0 Cr. Capital spending ran ₹13.0 Cr across the last 3 of those years.

FY26: borrowings of ₹3.0 Cr against equity of ₹96.0 Cr — a debt-to-equity of 0.03. Over 5 years borrowings went from ₹0.0 Cr to ₹3.0 Cr while capital spending ran ₹13.0 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 3.1 points of Valiant Communications Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 3.3% of the company. Promoters moved −2.2 points over the same window, to 39.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.1 points over 8 quarters to 3.3%; Promoters: −2.2 points over 8 quarters to 39.6%; Foreign institutions: +0.8 points over 8 quarters to 1.0%.

Why the register moved: domestic institutions drove it (+3.1 points), absorbed on the other side by promoters (−2.2 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Valiant Communications Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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