Viaz Tyres Limited

Sector n/a · NSE

₹56.50−₹0.50 (−0.88%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

The 60-second version of Viaz Tyres 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 ₹106 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 12.3% 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.

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 +130% while net margin moved +13% 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+130%

Margin effect+13%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 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

12.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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 · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 82% over 3 years, from ₹11 Cr to ₹20 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹20 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 11.3% to 7.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 24% a year✓ 32.1% CAGR
Latest reported year was 84.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 12.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 7 neutral · 1 weak

Market Cap

₹81 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

8.6%

Moderate

Moderate capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

84.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

58.0%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

11.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

2.18

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

83.4 / 75.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

85.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹50 Cr	₹57 Cr	₹106 Cr	+32.1%
EBITDA	₹5 Cr	₹5 Cr	₹8 Cr	₹8 Cr	+14.4%
EBITDA Margin	11.3%	10.6%	13.3%	7.4%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹5 Cr	+37.7%
EPS	₹2.18	₹1.94	₹2.72	—	—
ROE	6.5%	7.1%	9.1%	8.6%	—
ROCE	11.7%	11.5%	14.9%	12.3%	—
Total Debt	₹11 Cr	₹14 Cr	₹16 Cr	₹20 Cr	+22.1%
Free Cash Flow	-₹13 Cr	₹2 Cr	-₹3 Cr	-₹20 Cr	—

🟢 Revenue has grown at 32.1% a year over 3 years.

🟢 EBITDA has grown at 14.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.3% to 7.4% over 3 years (-4.0 pts).

🟢 PAT (Net Profit) has grown at 37.7% a year over 3 years.

🟢 ROE has risen from 6.5% to 8.6% over 3 years (+2.1 pts).

🟡 ROCE has held roughly flat at 12.3% over 3 years.

🔴 Total Debt has grown at 22.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹88 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹36 Cr

Recent News

1 mixed5 general

Viaz Tyres Limited Postpones Scheduled Interview with Stock Knocks Under Regulation 30

scanx.trade, 11 May

Viaz Tyres (NSEI:VIAZ) - Stock Analysis

Simply Wall Street, 01 Mar

Viaz Tyres IPO GMP, Date, Price, Review, Allotment 2023

IPO Watch, 16 Feb

Viaz Tyres Bets on Tyre Manufacturing Expansion After Strong FY26 Growth

Business Standard, 21 MayCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Viaz Tyres Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

JKTYRE Stock Price and Chart — NSE:JKTYRE

TradingView, 21 Jul

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

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑