Vaidya Sane Ayurved Laboratories Limited

Sector n/a · NSE

₹148.00−₹1.95 (−1.30%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

The 60-second version of Vaidya Sane Ayurved Laboratories 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 ₹107 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 11.7% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +8% while net margin moved +72% 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+8%

Margin effect+72%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

56/ 100

Average

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

Valuation

60/ 100

Fair

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

9.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 9.3% to 16.0% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 15.8% to 11.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1829% over 3 years, from ₹0 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 2.96x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 71% against revenue up 8% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.3% to 16.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 2.96x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 71% against revenue up 8%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 2.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 2.5% CAGR
Latest reported year was 18.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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 · 7 neutral · 2 weak

Market Cap

₹156 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

10.3%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.96x

High

High leverage

Revenue Growth (YoY)

18.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

82.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

3.99

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

168.7 / 169.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹99 Cr	₹99 Cr	₹90 Cr	₹107 Cr	+2.5%
EBITDA	₹9 Cr	₹6 Cr	₹15 Cr	₹17 Cr	+23.0%
EBITDA Margin	9.3%	5.9%	17.1%	16.0%	—
PAT (Net Profit)	₹5 Cr	₹2 Cr	₹7 Cr	₹9 Cr	+23.0%
EPS	₹4.6	₹1.75	₹5.78	—	—
ROE	11.9%	3.6%	11.4%	10.3%	—
ROCE	15.8%	5.4%	14.9%	11.7%	—
Total Debt	₹0 Cr	₹2 Cr	₹1 Cr	₹3 Cr	+168.2%
Free Cash Flow	-₹7 Cr	-₹12 Cr	₹17 Cr	-₹2 Cr	—

🟢 Revenue has grown at 2.5% a year over 3 years.

🟢 EBITDA has grown at 23.0% a year over 3 years.

🟢 EBITDA Margin has risen from 9.3% to 16.0% over 3 years (+6.7 pts).

🟢 PAT (Net Profit) has grown at 23.0% a year over 3 years.

🔴 ROE has fallen from 11.9% to 10.3% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 15.8% to 11.7% over 3 years (-4.0 pts).

🔴 Total Debt has grown at 168.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹105 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹8 Cr

Recent News

6 general

Here's Why Vaidya Sane Ayurved Laboratories (NSE:MADHAVBAUG) Has Caught The Eye Of Investors

Simply Wall Street, 30 Apr

Vaidya Sane Ayurved Laboratories Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Madhavbaug launches FoodRx to manage lifestyle disorders

scanx.trade, 29 May

Vaidya Sane Ayurved Laboratories Limited (Madhavbaug) gets NSE approval for SME IPO

PR Newswire, 05 Jan

Press Release Distribution India

Business Wire India, 04 Feb

SURAKSHA Stock Price and Chart — NSE:SURAKSHA

TradingView, 20 Aug

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

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑