Vaxfab Enterprises Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹65.48+₹0.51 (+0.78%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vaxfab Enterprises Limited is involved in the trading of textile products and clothing in India and United Arab Emirates. It also trades in agriculture products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹1 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?Little sign of one

Returns on capital of 11.7% 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.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +462% while net margin moved +94% 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+462%

Margin effect+94%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak
✓ ROE has improved by 6.3 points over the period

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

30/ 100

Expensive

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

N/A

No P/E — the company is lossmaking

EV/EBITDA

219.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 603% over 3 years.
Return on equity is rising
ROE has improved from 2.0% to 8.4%.
Return on capital is rising
ROCE has improved from 2.8% to 11.7%.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 2.8% to 1.0% over 3 years.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 12895% over 3 years, from ₹0 Cr to ₹44 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 2604% against revenue up 462% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 133% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.8% to 1.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 46.0x 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 2604% against revenue up 462%. 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.

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

1Revenue growth stays above 58% a year✓ 77.8% CAGR
Latest reported year was -97.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 46.0x
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.
5ROCE stays above 9%✓ 11.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹169 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-5.12

Loss-making

Negative earnings per share — the business is losing money

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-97.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

978.9%

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 generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1417.9%

Weak

Thin margins leave little room for error

Net Margin

-6.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.05

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.9 / 65.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17 Cr	₹9 Cr	₹59 Cr	₹94 Cr	+77.8%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	₹1 Cr	+27.3%
EBITDA Margin	2.8%	0.5%	-0.3%	1.0%	—
PAT (Net Profit)	₹0 Cr	-₹4 Cr	₹0 Cr	₹4 Cr	+121.6%
EPS	₹1.7	₹-4.25	₹0.4	₹4.33	+36.6%
ROE	2.0%	-27.8%	2.5%	8.4%	—
ROCE	2.8%	-32.6%	3.4%	11.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹8 Cr	₹44 Cr	+406.5%
Free Cash Flow	₹2 Cr	-₹7 Cr	-₹6 Cr	₹13 Cr	+91.5%

🟢 Revenue has grown at 77.8% a year over 3 years.

🟢 EBITDA has grown at 27.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 2.8% to 1.0% over 3 years (-1.8 pts).

🟢 PAT (Net Profit) has grown at 121.6% a year over 3 years.

🟢 EPS has grown at 36.6% a year over 3 years.

🟢 ROE has risen from 2.0% to 8.4% over 3 years (+6.3 pts).

🟢 ROCE has risen from 2.8% to 11.7% over 3 years (+9.0 pts).

🔴 Total Debt has grown at 406.5% a year over 3 years.

🟢 Free Cash Flow has grown at 91.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹204 Cr

Total Liabilities

₹160 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.8%

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

Vaxfab Enterprises Ltd is Rated Strong Sell

MarketsMojo, 18 Oct

Vaxfab Enterprises appoints Dhruvi Patel as company secretary

scanx.trade, 18 Oct

Compare PHOTOQUIP(I) with

Equitymaster, 16 Oct

Compare with VINTRON INFORM

Equitymaster, 16 Oct

Multibagger small-cap stock surges 19% to 52-week high despite stock market crash; here's why

Livemint, 01 Jun

Multibagger Stock Alert: Small Cap Stock Jumps 8.5% After Posting Q4 Profit

Goodreturns, 03 OctResults

🟡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

Revenue growth is negative (-97.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Valuation

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

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑