Virinchi Ltd Stock Research

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Virinchi Ltd Detail

Virinchi Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to IT sector.

As per the Company website it is Fintech and Healthcare company with a Market leading Loan Management System for Short Term Micro Credit Industry. The healthcare delivery business comprises of three operating hospitals in India.

The business operations of Company can be divided into below verticals

  • Fintech
  • Technology Services – Under the Ksoft specializes in SAP and .NET
  • Healthcare solutions

The Company has mobile app V23 for Patients for their healthcare needs. It has also started vCard which is India’s first downloadable instant settlement credit card, based on UPI BHIM.

QFund is a technology and segment leader for the short-term mortgage and lending industry in the US.PayEz is an innovative Point of Sale Credit service IT platform providing lead sourcing.

The company has Indian head office in Hyderabad and US office is situated in Edison New Jersey.

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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Virinchi Ltd Stock Performance

On an absolute basis Company has given 16 times return in past 16 years. The stock had very lean period after 2005 to 2016. It is only in year 2017 it broke above the recent high made in year 2005.

The stock performed well before 2006 period giving close to 10 times return on short span of time.This jump would have caught attention of investors and they were trapped for good long 10 years in the counter. This is the problem with too fast moving counters as they have wide silent years which force investors to book loss and get out of the counter.

Virinchi Ltd My Opinion

Virinchi Ltd is a IT company. It can not be clubbed as pure IT player as it has considerable presence in other verticals like Healthcare. It does have Healthcare chain running in India.

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I am not too fond of small companies having presence in too many sectors. This drains the energy of these companies fast. Healthcare as a sector have scope but many listed entities have not performed over the years barring Apollo Hospitals.

IT is defensive sound sector and has been darling of investors for too long. Some of the multibagger in past are from this sector only.  I have invested in one company from this sector and may not increase my exposure in the counter. IT industry is nearing saturation in India and it is better to look for stocks having presence in new verticals like Cloud and Analytics.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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