IVP Limited

Basic Materials — Specialty Chemicals · NSE

₹222.00−₹4.18 (−1.85%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

IVP Limited engages in the manufacture and distributes chemicals in India. The company offers polyurethane systems for footwear; adhesives for flexible packaging industry; and foundry chemicals, coatings, composites, refractory, powder, and insulation resin products.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees202

Annual revenue₹594 Cr

How does it make money?

Turns over ₹594 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 202 employees supports ₹2.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.94 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 11.9% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -10% while net margin moved -26% 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-10%

Margin effect-26%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.4% a year
✗ Profit has declined at 12.6% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

88/ 100

Cheap

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.

Historical Valuation

Current P/E

7.3x

3Y Median

12.8x

40 monthly readings · mean 12.2x · range 5.7x–20.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 12.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 82% below the peer median of 40.4x.

vs. its own history

Cheap

12.8x median over 40 months · -43%

vs. sector peers

Cheap

40.4x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 45% over 3 years.
Cash generation is improving
Free cash flow is up 42% over 3 years.
High return on capital employed
ROCE of 20.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.6% to 11.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 40.8% to 20.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 45% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹50 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 23.6% to 11.9%. 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.
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

1EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹50 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 18%✓ 20.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

9 / 11 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
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹229 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.3x

Cheap

Cheap against the generic band

P/B Ratio

1.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹30.5

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

12.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1080.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.68%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹50 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

17.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

12.3%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

227.0 / 206.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹660 Cr	₹545 Cr	₹538 Cr	₹594 Cr	-3.4%
EBITDA	₹45 Cr	₹32 Cr	₹30 Cr	₹41 Cr	-3.2%
EBITDA Margin	6.8%	5.9%	5.6%	6.8%	—
PAT (Net Profit)	₹28 Cr	₹12 Cr	₹11 Cr	₹19 Cr	-12.6%
EPS	₹27.13	₹11.89	₹10.96	₹18.09	-12.6%
ROE	23.6%	9.5%	8.1%	11.9%	—
ROCE	40.8%	19.1%	16.3%	20.5%	—
Total Debt	₹120 Cr	₹89 Cr	₹104 Cr	₹65 Cr	-18.2%
Free Cash Flow	₹35 Cr	₹42 Cr	-₹7 Cr	₹50 Cr	+12.5%

🔴 Revenue has shrunk at 3.4% a year over 3 years.

🔴 EBITDA has shrunk at 3.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 12.6% a year over 3 years.

🔴 EPS has shrunk at 12.6% a year over 3 years.

🔴 ROE has fallen from 23.6% to 11.9% over 3 years (-11.7 pts).

🔴 ROCE has fallen from 40.8% to 20.5% over 3 years (-20.3 pts).

🟢 Total Debt has shrunk at 18.2% a year over 3 years.

🟢 Free Cash Flow has grown at 12.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹342 Cr

Total Liabilities

₹185 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹53 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

30 Jul 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Why Is IVP Share Price Falling Key Reasons 2026

Univest, 18 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Be Sure To Check Out IVP Limited (NSE:IVP) Before It Goes Ex-Dividend

Simply Wall Street, 26 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

IVP Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 21 Sept

City Civil Court quashes MBPT order against IVP Ltd, remands matter

scanx.trade, 25 Jul

TIDCO to invest in Raptee, Agnikul Cosmos, iVP Semiconductor as Tamil Nadu positions itself as startup hub

Moneycontrol.com, 11 Mar

Is IVP the Best Stock in Its Sector? A Look at the Numbers

Univest, 29 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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.

All 5 tripwires holding · see Key things to watch ↑