Vapi Enterprise Limited

Industrials — Specialty Business Services · BSE

₹122.00₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Vapi Enterprise Limited does not have significant operations. Previously, it was engaged in paper products business. The company was formerly known as Vapi Paper Mills Limited. Vapi Enterprise Limited was incorporated in 1974 and is based in Mumbai, India.

IndustrySpecialty Business Services

SectorIndustrials

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 5.3% 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.

ROCE5.3%

ROE4.0%

Peer median ROE15.2%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 66.1% a year
✗ Profit fell 10.3% in the latest year

Quality vs. Valuation

Company Quality

28/ 100

Weak

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

Valuation

70/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

19.2x

3Y Median

19.4x

40 monthly readings · mean 19.8x · range 0.5x–49.7x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 19.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 78% below the peer median of 88.8x.

vs. its own history

Fair

19.4x median over 40 months · -1%

vs. sector peers

Cheap

88.8x median of 3 peers · -78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.2x

P/B

0.75x

EV/EBITDA

14.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 115.0% to 4.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 144.0% to 5.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 96% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 115.0% to 4.0%. 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

1Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
2Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3ROCE stays above 8%✗ 5.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 19.4x✓ 19.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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)
✗ 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

2 good · 5 neutral · 4 weak

Market Cap

₹28 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.37

Profitable

Profitable on a per-share basis

ROE

4.0%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

1.28x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-10.3%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹122

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

40.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

121.0 / 132.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹2 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+7.0%
PAT (Net Profit)	₹38 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-66.1%
EPS	₹168.71	₹3.65	₹5.77	₹6.55	-66.1%
ROE	115.0%	2.4%	3.7%	4.0%	—
ROCE	144.0%	3.6%	4.8%	5.3%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+0.0%
Free Cash Flow	₹8 Cr	₹9 Cr	-₹30 Cr	-₹7 Cr	—

🟢 EBITDA has grown at 7.0% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 66.1% a year over 3 years.

🔴 EPS has shrunk at 66.1% a year over 3 years.

🔴 ROE has fallen from 115.0% to 4.0% over 3 years (-111.0 pts).

🔴 ROCE has fallen from 144.0% to 5.3% over 3 years (-138.8 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹1 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹7 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.1%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed1 negative3 general

Vapi Enterprise Ltd Downgraded to Strong Sell Amid Technical and Fundamental Concerns

MarketsMojo, 14 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Vapi Enterprise closes trading window from July 1 till Q1FY26 results

scanx.trade, 23 JunResults

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

Vapi Enterprise appoints Sanket Goyal as Independent Director

scanx.trade, 30 Jul

Vapi Enterprise approves HRU & Associates as secretarial auditor for five years

scanx.trade, 05 Aug

AI voice startup Vapi hits $500M valuation after winning Amazon Ring over 40 rivals

CryptoRank, 12 May

GKP Printing shareholders approve FY26 results and Vapi unit sale

scanx.trade, 29 SeptResults

🟡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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak4.1/20

🟡Financial HealthAdequate9.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4.4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

This thesis breaks if

✗Free cash flow remains positive-₹7 Cr
✓Debt / EBITDA stays below 2x0.3x
✗ROCE stays above 8%5.3%
✓Valuation vs its own median of 19.4x19.2x today