Vera Synthetic Limited

Sector n/a · NSE

₹68.75+₹6.25 (+10.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

The 60-second version of Vera Synthetic 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 ₹49 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved +60% 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+21%

Margin effect+60%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

88/ 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.

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

5.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 7.6% to 11.7% over 3 years.
Debt is being paid down
Total debt is down 97% over 3 years.
Cash generation is improving
Free cash flow is up 1609% over 3 years.
Return on equity is rising
ROE has improved from 9.5% to 13.3%.
Return on capital is rising
ROCE has improved from 13.2% to 17.9%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
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

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 55% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.6% to 11.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 97% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Growth barely outpaces inflation
Revenue compounding at 6.5% 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.

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

1EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 16.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 6 neutral · 0 weak

Market Cap

₹34 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

13.3%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

16.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

74.0%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

27.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

6.00

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

86.3 / 85.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹39 Cr	₹42 Cr	₹49 Cr	+6.5%
EBITDA	₹3 Cr	₹4 Cr	₹4 Cr	₹6 Cr	+22.9%
EBITDA Margin	7.6%	9.4%	8.9%	11.7%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹4 Cr	+24.7%
EPS	₹3.69	₹3.64	₹4.11	—	—
ROE	9.5%	8.6%	8.8%	13.3%	—
ROCE	13.2%	12.1%	11.9%	17.9%	—
Total Debt	₹1 Cr	—	₹0 Cr	₹0 Cr	-70.6%
Free Cash Flow	₹0 Cr	₹4 Cr	₹0 Cr	₹4 Cr	+157.6%

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 22.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.6% to 11.7% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 24.7% a year over 3 years.

🟢 ROE has risen from 9.5% to 13.3% over 3 years (+3.8 pts).

🟢 ROCE has risen from 13.2% to 17.9% over 3 years (+4.6 pts).

🟢 Total Debt has shrunk at 70.6% a year over 3 years.

🟢 Free Cash Flow has grown at 157.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Recent News

6 general

Vera Synthetic Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

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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

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑