Privi Speciality Chemicals Limited

Basic Materials — Specialty Chemicals · NSE

₹3,353.10−₹12.00 (−0.36%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Privi Speciality Chemicals Limited, together with its subsidiaries, manufactures, supplies, and trades in aroma and fragrance chemicals in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees780

Annual revenue₹2,542 Cr

How does it make money?

Turns over ₹2,542 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 780 employees supports ₹3.26 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.2%

Net margin12.9%

Revenue / employee₹3.26 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.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 25.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE25.1%

ROE23.2%

Peer median ROE22.3%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 29.8% and earnings to grow about 33.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+29.8%

Est. earnings growth+33.1%

Analysts3

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +58% while net margin moved +831% 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+58%

Margin effect+831%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.09 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

84/ 100

Excellent

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.

Historical Valuation

Current P/E

37.3x

3Y Median

72.5x

40 monthly readings · mean 114.7x · range 41.3x–292.9x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 3y median of 72.5x. 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 is priced broadly in line with the peer median of 40.4x.

vs. its own history

Cheap

72.5x median over 40 months · -49%

vs. sector peers

Fair

40.4x median of 4 peers · -8%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

37.3x

P/B

9.27x

EV/EBITDA

21.2x

PEG

0.26

Dividend Yield

0.30%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 12.9% to 26.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 2.7% to 23.2%.
Return on capital is rising
ROCE has improved from 7.7% to 25.1%.
High return on capital employed
ROCE of 25.1% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 37.3x the stock trades 49% below its own median of 72.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.1% 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.
Margin expansion has further to run
EBITDA margin has risen from 12.9% to 26.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 49% 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.
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?

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
Small 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 12% a year✓ 16.6% CAGR
Latest reported year was 19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹230 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

12 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹13,098 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.3x

Fair

Fairly valued against the generic band

P/B Ratio

9.27x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹89.99

Profitable

Profitable on a per-share basis

ROE

23.2%

Strong

Strong capital efficiency

ROCE

25.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.74x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.30%

Modest

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

Free Cash Flow

₹230 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3,353.1

P/E (Forward)

24.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.2%

Good

Healthy core-business profitability

Net Margin

13.1%

Good

Strong bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3483.8 / 3482.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,605 Cr	₹1,752 Cr	₹2,092 Cr	₹2,542 Cr	+16.6%
EBITDA	₹207 Cr	₹347 Cr	₹473 Cr	₹665 Cr	+47.5%
EBITDA Margin	12.9%	19.8%	22.6%	26.2%	—
PAT (Net Profit)	₹22 Cr	₹95 Cr	₹187 Cr	₹328 Cr	+145.2%
EPS	₹5.45	₹24.3	₹47.3	₹81.08	+145.9%
ROE	2.7%	10.3%	16.9%	23.2%	—
ROCE	7.7%	15.8%	20.3%	25.1%	—
Total Debt	₹1,079 Cr	₹1,008 Cr	₹1,143 Cr	₹1,021 Cr	-1.8%
Free Cash Flow	-₹91 Cr	₹204 Cr	-₹18 Cr	₹230 Cr	—

🟢 Revenue has grown at 16.6% a year over 3 years.

🟢 EBITDA has grown at 47.5% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 26.2% over 3 years (+13.3 pts).

🟢 PAT (Net Profit) has grown at 145.2% a year over 3 years.

🟢 EPS has grown at 145.9% a year over 3 years.

🟢 ROE has risen from 2.7% to 23.2% over 3 years (+20.5 pts).

🟢 ROCE has risen from 7.7% to 25.1% over 3 years (+17.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.8% a year).

🟢 Free Cash Flow has turned positive, from -₹91 Cr to ₹230 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,170 Cr

Total Liabilities

₹1,729 Cr

Total Debt

₹1,021 Cr

Cash & Equivalents

₹44 Cr

Operating Cash Flow

₹550 Cr

Capex

-₹320 Cr

Shareholding (proxy)

Institutional Holding

8.6%

Insider Holding

58.5%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹4,365

+30.2% vs CMP

Target Range

₹4,205 – ₹4,490

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

Here's Why We Think Privi Speciality Chemicals (NSE:PRIVISCL) Is Well Worth Watching

Simply Wall Street, 13 May

Privi Speciality Chemicals accelerates global expansion with major capacity boost

Indiatimes, 17 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Privi Speciality Chemicals Share Price Forecast to 2030

Univest, 23 Jul

Buy Privi Speciality Chemicals; target of Rs 4400: Motilal Oswal

Moneycontrol.com, 03 Aug

Privi Speciality Chemicals gets NCLT notice for subsidiary amalgamation

scanx.trade, 05 Oct

Privi Speciality Chemicals consolidated net profit rises 35.98% in the June 2026 quarter

Business Standard, 30 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong16.7/20

🟢Financial HealthStrong15.3/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12.9/15

🟡ValuationFair7.9/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 12% a year16.6% CAGR
✓EBITDA margin holds above 24%26.2%
✓Free cash flow remains positive₹230 Cr
✓Debt / EBITDA stays below 2x1.5x
✓ROCE stays above 22%25.1%