Veekayem Fashion and Apparels Limited

Sector n/a · NSE

₹208.95+₹0.15 (+0.07%)

DalalBaazaar Score

55 / 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: 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, 7:49 pm

Understanding the Business

The 60-second version of Veekayem Fashion and Apparels 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 ₹320 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.7%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +115% while net margin moved +88% 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+115%

Margin effect+88%

DalalBaazaar Score

55/ 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

60/ 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

11.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 6.1% to 13.6%.
Return on capital is rising
ROCE has improved from 21.7% to 30.7%.
High return on capital employed
ROCE of 30.7% 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

6 items require attention · 3 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.00x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🔴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.
🟡Debt is increasingFinancial
Total debt is up 37% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 153% against revenue up 115% — 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 30.7% 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.
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?

The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 153% against revenue up 115%. 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 22% a year✓ 29.1% CAGR
Latest reported year was 31.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹145 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

13.6%

Moderate

Moderate capital efficiency

ROCE

30.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.00x

High

High leverage

Revenue Growth (YoY)

31.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

89.9%

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

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

14.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

115.0 / 111.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

92.0

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹149 Cr	₹234 Cr	₹243 Cr	₹320 Cr	+29.1%
EBITDA	₹10 Cr	₹13 Cr	₹16 Cr	₹23 Cr	+31.3%
EBITDA Margin	6.8%	5.7%	6.5%	7.1%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹4 Cr	₹8 Cr	+59.5%
EPS	₹3.21	₹3.44	₹6.85	—	—
ROE	6.1%	4.9%	9.8%	13.6%	—
ROCE	21.7%	24.2%	27.1%	30.7%	—
Total Debt	₹82 Cr	₹89 Cr	₹96 Cr	₹112 Cr	+11.2%
Free Cash Flow	₹5 Cr	-₹3 Cr	₹2 Cr	-₹13 Cr	—

🟢 Revenue has grown at 29.1% a year over 3 years.

🟢 EBITDA has grown at 31.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.1% over 3 years.

🟢 PAT (Net Profit) has grown at 59.5% a year over 3 years.

🟢 ROE has risen from 6.1% to 13.6% over 3 years (+7.5 pts).

🟢 ROCE has risen from 21.7% to 30.7% over 3 years (+9.0 pts).

🔴 Total Debt has grown at 11.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹206 Cr

Total Liabilities

₹150 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹9 Cr

Recent News

6 general

Veekayem Fashion And Apparels Upper Circuit Streak: Day 2

Univest, 16 Oct

Veekayem Fashion And Apparels Upper Circuit Today

Univest, 15 Oct

Compare with

Equitymaster, 30 Sept

Veekayem Fashion & Apparels Ltd

Equitypandit, 03 Apr

VEEKAYEM Stock Price and Chart — NSE:VEEKAYEM

TradingView, 07 Dec

Veekayem Fashion and Apparels IPO Subscription Status Live from NSE

IPO Watch, 04 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability · Valuation

WeakFinancial Health · Risk

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑