Vimta Labs Limited

Healthcare — Diagnostics & Research · NSE

₹523.60+₹1.95 (+0.37%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Vimta Labs Limited provides contract research and testing services in India and internationally.

IndustryDiagnostics & Research

SectorHealthcare

Employees1,384

Annual revenue₹407 Cr

How does it make money?

Turns over ₹407 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 1,384 employees supports ₹29.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin38.5%

Net margin19.0%

Revenue / employee₹29.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

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 17.0% 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.

ROCE21.0%

ROE17.0%

Peer median ROE14.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +29% while net margin moved +24% 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+29%

Margin effect+24%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.6x already prices in growth
• P/E is close to its own historical median of 31.5x
✗ P/B of 5.12x is a steep premium to book

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

54/ 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

29.6x

3Y Median

31.5x

40 monthly readings · mean 35.9x · range 18.9x–76.0x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 31.5x — 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

31.5x median over 40 months · -6%

vs. sector peers

Fair

33.3x median of 4 peers · -11%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.6x

P/B

5.12x

EV/EBITDA

14.8x

PEG

1.73

Dividend Yield

0.38%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 32.1% to 38.5% over 3 years.
Debt is being paid down
Total debt is down 78% over 3 years.
Cash generation is improving
Free cash flow is up 24% over 3 years.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

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 32.1% to 38.5%. 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 78% 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?

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 37%✓ 38.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.9% CAGR
Latest reported year was 11.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹47 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

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

₹2,340 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.6x

Fair

Fairly valued against the generic band

P/B Ratio

5.12x

Rich

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

EPS (TTM)

₹17.66

Profitable

Profitable on a per-share basis

ROE

17.0%

Strong

Strong capital efficiency

ROCE

21.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.73x

Moderate

Moderate leverage

Revenue Growth (YoY)

11.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.38%

Modest

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

Free Cash Flow

₹47 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹523.6

Operating Margin

22.7%

Good

Healthy core-business profitability

Net Margin

18.9%

Good

Strong bottom-line conversion

Current Ratio

3.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.10

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

573.0 / 607.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹315 Cr	₹289 Cr	₹344 Cr	₹407 Cr	+8.9%
EBITDA	₹101 Cr	₹101 Cr	₹129 Cr	₹157 Cr	+15.8%
EBITDA Margin	32.1%	35.1%	37.6%	38.5%	—
PAT (Net Profit)	₹48 Cr	₹41 Cr	₹67 Cr	₹78 Cr	+17.2%
EPS	₹10.68	₹9.12	₹14.93	₹17.4	+17.7%
ROE	17.1%	13.1%	17.8%	17.0%	—
ROCE	21.6%	18.8%	22.5%	21.0%	—
Total Debt	₹15 Cr	₹19 Cr	₹9 Cr	₹3 Cr	-39.4%
Free Cash Flow	₹38 Cr	-₹16 Cr	₹15 Cr	₹47 Cr	+7.5%

🟢 Revenue has grown at 8.9% a year over 3 years.

🟢 EBITDA has grown at 15.8% a year over 3 years.

🟢 EBITDA Margin has risen from 32.1% to 38.5% over 3 years (+6.4 pts).

🟢 PAT (Net Profit) has grown at 17.2% a year over 3 years.

🟢 EPS has grown at 17.7% a year over 3 years.

🟡 ROE has held roughly flat at 17.0% over 3 years.

🟡 ROCE has held roughly flat at 21.0% over 3 years.

🟢 Total Debt has shrunk at 39.4% a year over 3 years.

🟢 Free Cash Flow has grown at 7.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹562 Cr

Total Liabilities

₹105 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

₹147 Cr

Capex

-₹100 Cr

Shareholding (proxy)

Institutional Holding

4.5%

Insider Holding

65.6%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

18 Jun 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive1 mixed4 general

Vimta Labs (VIMTALABS) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Vimta Labs Q1FY27 PAT rises 11.4% to ₹210.42 Mn

scanx.trade, 14 Oct

Vimta Labs vs Nifty 50: 1Y Return -24.69% vs -11.35%

Univest, 13 Oct

VIMTALABS Forecast — Price Target — Prediction for 2027

TradingView, 30 JulAnalyst view

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

Compare with VIMTA LABS

Equitymaster, 14 Oct

Vimta Labs Limited (NSE:VIMTALABS) Looks Interesting, And It's About To Pay A Dividend

Simply Wall Street, 14 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong16.7/20

🟢Financial HealthStrong16.6/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong12.8/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 37%38.5%
✓Revenue growth stays above 7% a year8.9% CAGR
✓Free cash flow remains positive₹47 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 18%21.0%