Vasa Denticity Limited

Sector n/a · NSE

₹563.10−₹4.70 (−0.83%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

The 60-second version of Vasa Denticity Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹279 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 7.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +263% while net margin moved -48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+263%

Margin effect-48%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

18/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

74.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 96% over 3 years.
Very low debt
Debt/Equity of 0.07x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 90.0% to 5.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 72.5% to 7.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 787% against revenue up 263% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 717% against revenue up 263% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 3.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 96% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 8.0% to 4.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 787% against revenue up 263%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 90.0% to 5.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 40% a year✓ 53.6% CAGR
Latest reported year was 11.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹31 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹977 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

5.9%

Weak

Weak capital efficiency

ROCE

7.6%

Weak

Low return on total capital employed

Debt/Equity

0.07x

Low

Conservative leverage

Revenue Growth (YoY)

11.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-39.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

29.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

8.01

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

445.3 / 419.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY24	FY25	FY26	3Y CAGR
Revenue	₹77 Cr	₹172 Cr	₹249 Cr	₹279 Cr	+53.6%
EBITDA	₹6 Cr	₹20 Cr	₹25 Cr	₹13 Cr	+28.7%
EBITDA Margin	8.0%	11.7%	10.0%	4.7%	—
PAT (Net Profit)	₹5 Cr	₹15 Cr	₹17 Cr	₹10 Cr	+23.7%
EPS	₹3.38	₹9.74	₹10.44	—	—
ROE	90.0%	22.1%	12.8%	5.9%	—
ROCE	72.5%	28.1%	17.2%	7.6%	—
Total Debt	₹3 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-66.7%
Free Cash Flow	-₹0 Cr	-₹14 Cr	-₹24 Cr	-₹31 Cr	—

🟢 Revenue has grown at 53.6% a year over 3 years.

🟢 EBITDA has grown at 28.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.0% to 4.7% over 3 years (-3.3 pts).

🟢 PAT (Net Profit) has grown at 23.7% a year over 3 years.

🔴 ROE has fallen from 90.0% to 5.9% over 3 years (-84.2 pts).

🔴 ROCE has fallen from 72.5% to 7.6% over 3 years (-64.9 pts).

🟢 Total Debt has shrunk at 66.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹197 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹25 Cr

Capex

-₹6 Cr

Recent News

4 mixed2 general

Earnings Not Telling The Story For Vasa Denticity Limited (NSE:DENTALKART)

Simply Wall Street, 10 FebResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare with

Equitymaster, 15 Oct

Vasa Denticity Share Price Analysis NSE DENTALKART RSI Oversold Trend

Kalkine India, 25 Mar

Vasa Denticity - Ashish Kacholia's Q1 portfolio: 13 stocks the ace investor bought, sold or likely exited. Full list

The Economic Times, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Vasa Denticity Limited Calls Off Proposed Acquisition of IDS Denmed Private Limited

scanx.trade, 09 MayM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Vasa Denticity's (NSE:DENTALKART) Anemic Earnings Might Be Worse Than You Think

Simply Wall Street, 03 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑