Vintage Coffee and Beverages Limited

Consumer Defensive — Beverages - Non-Alcoholic · NSE

₹177.00−₹1.26 (−0.71%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vintage Coffee and Beverages Limited, through its subsidiaries, primarily engages in the manufacture, export, and sale of coffee and beverage products in India and internationally.

IndustryBeverages - Non-Alcoholic

SectorConsumer Defensive

Employees16

Annual revenue₹553 Cr

How does it make money?

Turns over ₹553 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹34.57 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹34.57 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSUMER PRODUCT LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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?Some evidence

ROCE of 15.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

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 +779% while net margin moved +113% 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+779%

Margin effect+113%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.38 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

71/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

32.7x

2Y Median

49.6x

26 monthly readings · mean 66.3x · range 34.0x–135.9x

Sector Median

59.3x

median of 3 sector peers

🟢Current valuation is approximately 34% below its 2y median of 49.6x. 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 45% below the peer median of 59.3x.

vs. its own history

Cheap

49.6x median over 26 months · -34%

vs. sector peers

Cheap

59.3x median of 3 peers · -45%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.5x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 3.6% to 12.7%.
Return on capital is rising
ROCE has improved from 5.8% to 15.4%.
Very low debt
Debt/Equity of 0.22x 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

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.2 points, from 24.9% to 18.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 1003% against revenue up 779% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 73% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 34% 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 45% 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?

Margins are being competed away
EBITDA margin has fallen from 24.9% to 18.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 1003% against revenue up 779%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 80% a year✓ 106.4% CAGR
Latest reported year was 58.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹142 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹2,593 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.41

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

15.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

58.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

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

Free Cash Flow

-₹142 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.9%

Good

Healthy core-business profitability

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

4.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

179.3 / 170.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹63 Cr	₹131 Cr	₹309 Cr	₹553 Cr	+106.4%
EBITDA	₹16 Cr	₹26 Cr	₹58 Cr	₹103 Cr	+87.5%
EBITDA Margin	24.9%	19.9%	18.6%	18.7%	—
PAT (Net Profit)	₹4 Cr	₹12 Cr	₹40 Cr	₹72 Cr	+165.4%
EPS	₹0.55	₹1.14	₹3.19	₹5.21	+111.6%
ROE	3.6%	7.2%	13.3%	12.7%	—
ROCE	5.8%	8.4%	13.8%	15.4%	—
Total Debt	₹102 Cr	₹97 Cr	₹82 Cr	₹124 Cr	+6.5%
Free Cash Flow	₹11 Cr	-₹37 Cr	-₹30 Cr	-₹142 Cr	—

🟢 Revenue has grown at 106.4% a year over 3 years.

🟢 EBITDA has grown at 87.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.9% to 18.7% over 3 years (-6.2 pts).

🟢 PAT (Net Profit) has grown at 165.4% a year over 3 years.

🟢 EPS has grown at 111.6% a year over 3 years.

🟢 ROE has risen from 3.6% to 12.7% over 3 years (+9.1 pts).

🟢 ROCE has risen from 5.8% to 15.4% over 3 years (+9.6 pts).

🔴 Total Debt has grown at 6.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹142 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹725 Cr

Total Liabilities

₹156 Cr

Cash & Equivalents

₹86 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹157 Cr

Shareholding (proxy)

Institutional Holding

8.1%

Insider Holding

10.2%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

23 Sept 2026

Peer Comparison

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

Recent News

1 mixed5 general

Vintage Coffee board to meet Oct 20 to consider fund raising plans

scanx.trade, 15 Oct

Vintage Coffee and Beverages' (NSE:VINCOFE) Earnings Might Be Weaker Than You Think

Simply Wall Street, 29 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Vintage Coffee And Beverages Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

Vintage Coffee jumps after SBI Funds Management buys stake via bulk deals

Business Standard, 12 Jun

Vintage Coffee and Other Stocks in Focus After Shares Worth ₹126 Cr Change Hands By Trade Brains

Investing.com India, 12 Jun

Vintage Coffee to CCL Products: Coffee stocks surge on high global prices, supply concerns; what investors should know

Upstox, 25 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑