Vesuvius India Limited

Industrials — Specialty Industrial Machinery · NSE

₹414.00+₹1.40 (+0.34%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vesuvius India Limited manufactures and sells refractory products and services in India. The company offers engineered consumable ceramic products, systems, and robotics; molten metal handling solution; and foundry, aimed at improving casting quality and operation.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees652

Annual revenue₹2,100 Cr

How does it make money?

Turns over ₹2,100 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 652 employees supports ₹3.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.22 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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 21.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.9% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +57% 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+57%

Margin effect+44%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

78/ 100

Good

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.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

32.8x

4Y Median

41.7x

44 monthly readings · mean 44.4x · range 29.3x–65.6x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 4y median of 41.7x. 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 50% below the peer median of 66.2x.

vs. its own history

Cheap

41.7x median over 44 months · -21%

vs. sector peers

Cheap

66.2x median of 4 peers · -50%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.6x

PEG

1.05

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 14.1% to 18.8% over 3 years.
Cash generation is improving
Free cash flow is up 363% over 3 years.
Return on equity is rising
ROE has improved from 11.7% to 15.9%.
Return on capital is rising
ROCE has improved from 15.3% to 21.0%.
High return on capital employed
ROCE of 21.0% 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

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 131% against revenue up 57% — 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 21.0% 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 14.1% to 18.8%. 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 21% 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 50% 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?

Sales are being booked faster than collected
Receivables are up 131% against revenue up 57%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Small 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 12% a year✓ 16.3% CAGR
Latest reported year was 2.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹72 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 18%✓ 21.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹8,403 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.8x

Fair

Fairly valued against the generic band

P/B Ratio

4.81x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.61

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

21.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

2.3%

Modest

Modest growth

Profit Growth (YoY)

-7.4%

Falling

Profits are shrinking

Dividend Yield

0.36%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹72 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

21.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.9%

Average

Average margins

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

3.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

403.0 / 417.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹1,335 Cr	₹1,591 Cr	₹1,865 Cr	₹2,100 Cr	+16.3%
EBITDA	₹188 Cr	₹322 Cr	₹381 Cr	₹394 Cr	+28.1%
EBITDA Margin	14.1%	20.2%	20.4%	18.8%	—
PAT (Net Profit)	₹117 Cr	₹213 Cr	₹265 Cr	₹264 Cr	+31.3%
EPS	₹5.75	₹10.49	₹13.03	₹13.01	+31.3%
ROE	11.7%	17.8%	18.5%	15.9%	—
ROCE	15.3%	23.2%	23.8%	21.0%	—
Total Debt	—	₹13 Cr	₹13 Cr	₹14 Cr	—
Free Cash Flow	₹16 Cr	-₹117 Cr	₹16 Cr	₹72 Cr	+66.7%

🟢 Revenue has grown at 16.3% a year over 3 years.

🟢 EBITDA has grown at 28.1% a year over 3 years.

🟢 EBITDA Margin has risen from 14.1% to 18.8% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 31.3% a year over 3 years.

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

🟢 ROE has risen from 11.7% to 15.9% over 3 years (+4.2 pts).

🟢 ROCE has risen from 15.3% to 21.0% over 3 years (+5.6 pts).

🟢 Free Cash Flow has grown at 66.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹2,150 Cr

Total Liabilities

₹486 Cr

Cash & Equivalents

₹288 Cr

Operating Cash Flow

₹177 Cr

Capex

-₹105 Cr

Shareholding (proxy)

Institutional Holding

24.8%

Insider Holding

56.1%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

30 Apr 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 mixed4 general

Vesuvius India (NSEI:VESUVIUS) - Stock Analysis

Simply Wall Street, 14 Oct

Vesuvius India Share Price: price action and fundamentals

Univest, 24 Sept

Vesuvius India Q1FY27: Net Profit ₹5,585 Lakhs; EBITDA Margin Expands to 18.35%

scanx.trade, 08 May

Declining Stock and Solid Fundamentals: Is The Market Wrong About Vesuvius India Limited (NSE:VESUVIUS)?

Simply Wall Street, 13 Jan

Vesuvius India Share Price gains; sector benchmark view

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Vesuvius India Releases Full Transcript of May 7, 2026 Institutional Analyst Meet

scanx.trade, 07 MayAnalyst view

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · 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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑