Vijay Solvex Limited

Consumer Defensive — Packaged Foods · NSE

₹655.10+₹2.40 (+0.37%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vijay Solvex Limited manufactures and sells edible oils and vanaspati ghee in India and internationally. It operates through three segments: Edible Oils, Ceramics, and Wind Power Generation.

IndustryPackaged Foods

SectorConsumer Defensive

Employees141

Annual revenue₹2,361 Cr

How does it make money?

Turns over ₹2,361 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 141 employees supports ₹16.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹16.75 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. 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 7.3% 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.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved +16% 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-2%

Margin effect+16%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.8% a year
✗ Profit CAGR of only 4.3%

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

72/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

8.8x

Sector Median

51.7x

median of 4 sector peers

🟢Against its sector it trades 83% below the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

51.7x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.3x

PEG

2.04

What's Good / What's Bad

🟢 What's Going Well2

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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 73% over 3 years, from ₹38 Cr to ₹65 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 144% against revenue up -2% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹67 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 83% 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?

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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -1%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹67 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 7.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹210 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.8x

Cheap

Cheap against the generic band

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹74.43

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

7.3%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

35.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

428.5%

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

-₹67 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

RSI (14)

56.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,422 Cr	₹1,829 Cr	₹1,828 Cr	₹2,361 Cr	-0.8%
EBITDA	₹22 Cr	₹9 Cr	₹29 Cr	₹28 Cr	+8.5%
EBITDA Margin	0.9%	0.5%	1.6%	1.2%	—
PAT (Net Profit)	₹17 Cr	₹3 Cr	₹18 Cr	₹19 Cr	+4.3%
EPS	₹53.12	₹9.18	₹57.56	₹60.29	+4.3%
ROE	5.3%	0.9%	5.4%	5.5%	—
ROCE	7.5%	1.5%	6.4%	7.3%	—
Total Debt	₹38 Cr	₹9 Cr	₹33 Cr	₹65 Cr	+20.1%
Free Cash Flow	₹63 Cr	₹21 Cr	-₹27 Cr	-₹67 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.8% a year).

🟢 EBITDA has grown at 8.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.2% over 3 years.

🟢 PAT (Net Profit) has grown at 4.3% a year over 3 years.

🟢 EPS has grown at 4.3% a year over 3 years.

🟡 ROE has held roughly flat at 5.5% over 3 years.

🟡 ROCE has held roughly flat at 7.3% over 3 years.

🔴 Total Debt has grown at 20.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹63 Cr to -₹67 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹463 Cr

Total Liabilities

₹110 Cr

Cash & Equivalents

₹43 Cr

Operating Cash Flow

-₹61 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.5%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

6 general

Compare Agro Tech Foods with VIJAY SOLVEX

Equitymaster, 16 Oct

Vijay Solvex Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Vijay Solvex schedules 38th AGM for September 28, 2026

scanx.trade, 28 Sept

Vijay Solvex Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Vijay Solvex equity shares admitted to NSE dealings from August 17

scanx.trade, 10 Sept

Vijay Solvex Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑