Vikram Thermo (India) Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹400.05+₹3.60 (+0.91%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vikram Thermo (India) Limited engages in the manufacture, marketing, and export of pharmaceutical excipients and chemicals in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees153

Annual revenue₹133 Cr

How does it make money?

Turns over ₹133 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 153 employees supports ₹86.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹86.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.5% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +20% while net margin moved +89% 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+20%

Margin effect+89%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

58/ 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

28.6x

3Y Median

29.1x

40 monthly readings · mean 38.1x · range 18.7x–95.0x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 29.1x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Fair

29.1x median over 40 months · -2%

vs. sector peers

Fair

33.3x median of 4 peers · -14%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.8x

PEG

0.91

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 24.6% to 41.3% over 3 years.
Debt is being paid down
Total debt is down 75% over 3 years.
Cash generation is improving
Free cash flow is up 14242% over 3 years.
Return on equity is rising
ROE has improved from 18.9% to 24.5%.
Return on capital is rising
ROCE has improved from 24.1% to 32.4%.
High return on capital employed
ROCE of 32.4% 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

🔴High leverageFinancial
Debt/Equity of 2.96x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.4% 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 24.6% to 41.3%. 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 75% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 2.96x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.4% 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.
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.

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

1EBITDA margin holds above 39%✓ 41.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 32.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹42 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 32.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 3 neutral · 2 weak

Market Cap

₹1,254 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.6x

Fair

Fairly valued against the generic band

P/B Ratio

7.99x

Rich

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

EPS (TTM)

₹13.99

Profitable

Profitable on a per-share basis

ROE

24.5%

Strong

Strong capital efficiency

ROCE

32.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.96x

High

High leverage

Revenue Growth (YoY)

32.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.31%

Modest

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

Free Cash Flow

₹42 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

45.2%

Good

Healthy core-business profitability

Net Margin

30.6%

Good

Strong bottom-line conversion

Current Ratio

3.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

400.1 / 335.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹110 Cr	₹100 Cr	₹125 Cr	₹133 Cr	+6.4%
EBITDA	₹27 Cr	₹37 Cr	₹46 Cr	₹55 Cr	+26.5%
EBITDA Margin	24.6%	37.1%	37.1%	41.3%	—
PAT (Net Profit)	₹17 Cr	₹25 Cr	₹8 Cr	₹38 Cr	+31.5%
EPS	₹5.39	₹8.09	₹2.58	₹12.28	+31.6%
ROE	18.9%	22.4%	6.7%	24.5%	—
ROCE	24.1%	29.4%	35.6%	32.4%	—
Total Debt	₹19 Cr	₹7 Cr	₹6 Cr	₹5 Cr	-36.9%
Free Cash Flow	₹0 Cr	₹16 Cr	-₹17 Cr	₹42 Cr	+423.4%

🟢 Revenue has grown at 6.4% a year over 3 years.

🟢 EBITDA has grown at 26.5% a year over 3 years.

🟢 EBITDA Margin has risen from 24.6% to 41.3% over 3 years (+16.7 pts).

🟢 PAT (Net Profit) has grown at 31.5% a year over 3 years.

🟢 EPS has grown at 31.6% a year over 3 years.

🟢 ROE has risen from 18.9% to 24.5% over 3 years (+5.7 pts).

🟢 ROCE has risen from 24.1% to 32.4% over 3 years (+8.3 pts).

🟢 Total Debt has shrunk at 36.9% a year over 3 years.

🟢 Free Cash Flow has grown at 423.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹188 Cr

Total Liabilities

₹31 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹52 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.5%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive1 mixed3 general

Vikram Thermo (India) (VIKRAMTH) Share Price near all-time high after 13.29% jump

Univest, 12 Oct

Mrs. Rachana Vikalp Patel increases stake in Vikram Thermo to 66.01%

scanx.trade, 27 Jun

Vikram Thermo Q4 Net Profit Jumps 107% to ₹8.5 Cr as Revenue Surges 39%

Sahi, 27 MayResults

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

Vikram Thermo Standalone June 2026 Net Sales at Rs 37.87 crore, up 32.41% Y-o-Y

Moneycontrol.com, 18 Aug

Vikram Thermo (India) standalone net profit rises 109.34% in the March 2026 quarter

Business Standard, 27 MayResults

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

Vikram Thermo Share Price Fall: Key Fundamental Context

Univest, 01 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

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

All 5 tripwires holding · see Key things to watch ↑