Veedol Corporation Limited

Basic Materials — Specialty Chemicals · NSE

₹1,363.60+₹2.20 (+0.16%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Veedol Corporation Limited, together with its subsidiaries, engages in the manufacturing and marketing of lubricants under the Veedol brand in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees502

Annual revenue₹2,156 Cr

How does it make money?

Turns over ₹2,156 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 502 employees supports ₹4.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.29 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 22.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.5% 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 +16% while net margin moved +44% 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+16%

Margin effect+44%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.56 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

85/ 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

10.5x

3Y Median

17.8x

40 monthly readings · mean 19.3x · range 12.1x–40.1x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 17.8x. 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 74% below the peer median of 40.4x.

vs. its own history

Cheap

17.8x median over 40 months · -41%

vs. sector peers

Cheap

40.4x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.0x

PEG

0.56

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.9% to 12.6% over 3 years.
Cash generation is improving
Free cash flow is up 81% over 3 years.
Return on equity is rising
ROE has improved from 15.0% to 18.5%.
Return on capital is rising
ROCE has improved from 18.2% to 22.2%.
High return on capital employed
ROCE of 22.2% 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 Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 247% over 3 years, from ₹5 Cr to ₹16 Cr.
🔴High leverageFinancial
Debt/Equity of 1.53x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 45% against revenue up 16% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.2% 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 8.9% to 12.6%. 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 41% 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 74% 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?

Leverage amplifies any setback
Debt/Equity of 1.53x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 45% against revenue up 16%. 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 5.2% 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.
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
2 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

1EBITDA margin holds above 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.2% CAGR
Latest reported year was 18.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹159 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 2 neutral · 1 weak

Market Cap

₹2,317 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.5x

Cheap

Cheap against the generic band

P/B Ratio

2.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹129.3

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

22.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.53x

High

High leverage

Revenue Growth (YoY)

18.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.25%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹159 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.8%

Average

Average margins

Net Margin

9.7%

Average

Average bottom-line conversion

Current Ratio

2.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1365.6 / 1432.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,852 Cr	₹1,929 Cr	₹1,962 Cr	₹2,156 Cr	+5.2%
EBITDA	₹165 Cr	₹207 Cr	₹242 Cr	₹272 Cr	+18.2%
EBITDA Margin	8.9%	10.7%	12.3%	12.6%	—
PAT (Net Profit)	₹115 Cr	₹143 Cr	₹169 Cr	₹192 Cr	+18.7%
EPS	₹67.42	₹84.1	₹99.29	₹112.75	+18.7%
ROE	15.0%	17.3%	18.5%	18.5%	—
ROCE	18.2%	21.4%	20.9%	22.2%	—
Total Debt	₹5 Cr	₹1 Cr	₹22 Cr	₹16 Cr	+51.4%
Free Cash Flow	₹88 Cr	₹109 Cr	-₹12 Cr	₹159 Cr	+21.8%

🟢 Revenue has grown at 5.2% a year over 3 years.

🟢 EBITDA has grown at 18.2% a year over 3 years.

🟢 EBITDA Margin has risen from 8.9% to 12.6% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 18.7% a year over 3 years.

🟢 EPS has grown at 18.7% a year over 3 years.

🟢 ROE has risen from 15.0% to 18.5% over 3 years (+3.5 pts).

🟢 ROCE has risen from 18.2% to 22.2% over 3 years (+4.0 pts).

🔴 Total Debt has grown at 51.4% a year over 3 years.

🟢 Free Cash Flow has grown at 21.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,406 Cr

Total Liabilities

₹370 Cr

Cash & Equivalents

₹168 Cr

Operating Cash Flow

₹194 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

66.6%

Corporate Actions

Dividend Rate

₹58

Ex-Dividend Date

17 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

2 positive2 mixed2 general

Veedol (NSEI:VEEDOL) - Stock Analysis

Simply Wall Street, 15 Oct

Andrew Yule confirms no encumbrance on Veedol shares in FY26

scanx.trade, 23 Jun

Veedol Corp gains after Q4 PAT climbs 9% YoY to Rs 49 cr

Business Standard, 21 MayResults

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

Interested In Veedol's (NSE:VEEDOL) Upcoming ₹22.00 Dividend? You Have Three Days Left

Simply Wall Street, 13 JulCapital return

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

Veedol Corporation Share Price Target 2026: Rs 1,800 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Veedol Fixes July 17 Record Date for ₹22 Dividend

scanx.trade, 20 MayCapital return

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health · Risk

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

All 5 tripwires holding · see Key things to watch ↑