Vidhi Specialty Food Ingredients Limited

Basic Materials — Specialty Chemicals · NSE

₹335.00−₹1.35 (−0.40%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

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, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vidhi Specialty Food Ingredients Limited engages in the manufacture and selling synthetic and natural food-grade colours for applications in foods and beverages, confectionery, pharmaceuticals, animal nutrition, cosmetics, inkjet inks, and salt-free colour formulations.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees125

Annual revenue₹369 Cr

How does it make money?

Turns over ₹369 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 125 employees supports ₹2.95 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.95 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 20.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.9% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved +40% 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-7%

Margin effect+40%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.4% a year
• Profit CAGR of 9.1%

Quality vs. Valuation

Company Quality

68/ 100

Good

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.

Historical Valuation

Current P/E

31.4x

3Y Median

56.1x

40 monthly readings · mean 51.1x · range 31.7x–72.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 56.1x. 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 22% below the peer median of 40.4x.

vs. its own history

Cheap

56.1x median over 40 months · -44%

vs. sector peers

Cheap

40.4x median of 4 peers · -22%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.7x

PEG

3.45

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 13.8% to 21.4% over 3 years.
High return on capital employed
ROCE of 20.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x 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

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 42% against revenue up -7% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 34% against revenue up -7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.7% 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.
Margin expansion has further to run
EBITDA margin has risen from 13.8% to 21.4%. 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 44% 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 22% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹26 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 42% against revenue up -7%. 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
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 19%✓ 21.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 18%✓ 20.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 56.1x✓ 31.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹1,673 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.4x

Fair

Fairly valued against the generic band

P/B Ratio

5.11x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹10.66

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

20.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

66.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.90%

Modest

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

Free Cash Flow

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

16.3%

Good

Healthy core-business profitability

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

3.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.04

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

346.9 / 339.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹396 Cr	₹290 Cr	₹374 Cr	₹369 Cr	-2.4%
EBITDA	₹55 Cr	₹57 Cr	₹69 Cr	₹79 Cr	+13.0%
EBITDA Margin	13.8%	19.6%	18.4%	21.4%	—
PAT (Net Profit)	₹38 Cr	₹36 Cr	₹43 Cr	₹49 Cr	+9.1%
EPS	₹7.55	₹7.31	₹8.68	₹9.8	+9.1%
ROE	15.0%	13.0%	14.4%	14.9%	—
ROCE	20.1%	17.7%	19.9%	20.7%	—
Total Debt	₹52 Cr	₹20 Cr	₹66 Cr	₹58 Cr	+3.8%
Free Cash Flow	₹53 Cr	₹51 Cr	-₹12 Cr	₹26 Cr	-20.8%

🔴 Revenue has shrunk at 2.4% a year over 3 years.

🟢 EBITDA has grown at 13.0% a year over 3 years.

🟢 EBITDA Margin has risen from 13.8% to 21.4% over 3 years (+7.6 pts).

🟢 PAT (Net Profit) has grown at 9.1% a year over 3 years.

🟢 EPS has grown at 9.1% a year over 3 years.

🟡 ROE has held roughly flat at 14.9% over 3 years.

🟡 ROCE has held roughly flat at 20.7% over 3 years.

🔴 Total Debt has grown at 3.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 20.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹419 Cr

Total Liabilities

₹91 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹42 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.5%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

14 Nov 2025

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 positive1 mixed3 general

Vidhi Specialty Food Ingredients Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Vidhi Specialty Food Ingredients profit rises 35% in Q1FY27 on revenue surge

scanx.trade, 29 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Vidhi Specialty Food Ingredients consolidated net profit rises 34.80% in the June 2026 quarter

Business Standard, 29 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Vidhi Specialty Food Ingredients Share Price Target 2026: Rs 335 Analyst Forecast

Univest, 26 JunAnalyst view

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

Vidhi Specialty Food Ingredients Ltd (NSE:VIDHIING): What to Know About I

Kalkine India, 14 Sept

Vidhi Specialty Food Ingredients Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation · Risk

WeakGrowth

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑