VAMA WOVENFAB LIMITED

Consumer Cyclical — Packaging & Containers · BSE

₹86.20−₹4.50 (−4.96%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. 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

Company site ↗

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

What does this company do?

Vama Wovenfab Limited manufactures and sells Polypropylene and High Density Polyethylene woven sack bags, fabrics, and plastic granules. It serves businesses in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Annual revenue₹215 Cr

How does it make money?

Turns over ₹215 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 54.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 50.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +917% while net margin moved -1253% 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+917%

Margin effect-1253%

DalalBaazaar Score

70/ 100

Good

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

73/ 100

Good

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

Valuation

87/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

3.9x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 94% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from -1.5% to 40.2%.
Return on capital is rising
ROCE has improved from 18.3% to 54.6%.
High return on capital employed
ROCE of 54.6% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 54% over 3 years, from ₹17 Cr to ₹25 Cr.
🔴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 2091% against revenue up 917% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 54.6% 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.
Cheaper than its peers
It trades 94% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.1% to 8.2%. 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 2091% against revenue up 917%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 87% a year✓ 116.6% CAGR
Latest reported year was 177.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 52%✓ 54.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.9x

Cheap

Cheap against the generic band

P/B Ratio

1.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹22.25

Profitable

Profitable on a per-share basis

ROE

50.9%

Strong

Strong capital efficiency

ROCE

54.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.89x

Moderate

Moderate leverage

Revenue Growth (YoY)

177.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

68.8%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

15.2%

Good

Assets are working hard

Operating Margin

8.1%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.55

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹28 Cr	₹77 Cr	₹215 Cr	+116.6%
EBITDA	₹3 Cr	₹5 Cr	₹10 Cr	₹18 Cr	+85.9%
EBITDA Margin	13.1%	19.1%	13.4%	8.2%	—
PAT (Net Profit)	-₹0 Cr	₹3 Cr	₹7 Cr	₹12 Cr	—
EPS	₹-0.19	₹5.07	₹13.18	—	—
ROE	-1.5%	29.1%	39.9%	40.2%	—
ROCE	18.3%	43.5%	50.1%	54.6%	—
Total Debt	₹17 Cr	₹11 Cr	₹17 Cr	₹25 Cr	+15.4%
Free Cash Flow	-₹7 Cr	₹7 Cr	-₹3 Cr	-₹7 Cr	—

🟢 Revenue has grown at 116.6% a year over 3 years.

🟢 EBITDA has grown at 85.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.1% to 8.2% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹12 Cr.

🟢 ROE has risen from -1.5% to 40.2% over 3 years (+41.8 pts).

🟢 ROCE has risen from 18.3% to 54.6% over 3 years (+36.4 pts).

🔴 Total Debt has grown at 15.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹74 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

VAMA WOVENFAB LIMITED Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Vasundhara Chem Plast acquires 0.55% stake in Vama Wovenfab

scanx.trade, 13 Oct

VAMA WOVENFAB LIMITED Share Price

Upstox, 22 Sept

Vama Wovenfab Q1 Results 2026 - Find Vama Wovenfab Q1 Earnings Result | Vama Wovenfab Q1 results

Livemint, 23 SeptResults

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

Vama Wovenfab Lists Flat at ₹341, Slips 5% on BSE SME

HDFC Sky, 22 Sept

3 SME IPOs make D-Street debut: Vama Wovenfab, Shakti Polytarp, Quanto Agroworld shares list flat at issue

The Economic Times, 22 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑