Vineet Laboratories Limited

Basic Materials — Chemicals · NSE

₹39.20+₹0.62 (+1.61%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vineet Laboratories Limited engages in the research, development, manufacture, and sale of active pharmaceutical ingredients (API), intermediates, and fine chemicals primarily in India.

IndustryChemicals

SectorBasic Materials

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are 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?Little sign of one

Returns on capital of 10.7% 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 ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -72% while net margin moved +217% 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-72%

Margin effect+217%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 34.6% a year
✗ Profit has declined at 3.9% a year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

56/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

39.2x

3Y Median

42.5x

40 monthly readings · mean 45.9x · range 31.2x–71.4x

Sector Median

33.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 42.5x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 16% above the peer median of 33.8x.

vs. its own history

Fair

42.5x median over 40 months · -8%

vs. sector peers

Fair

33.8x median of 3 peers · +16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 3.3% to 14.4% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴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 39% against revenue up -72% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 46% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 75% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.3% to 14.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 12%✓ 14.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹75 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.99x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

105.5%

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

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.5%

Average

Average asset productivity

Operating Margin

10.5%

Average

Average margins

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

36.6 / 37.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

72.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹212 Cr	₹151 Cr	₹75 Cr	₹59 Cr	-34.6%
EBITDA	₹7 Cr	₹6 Cr	-₹14 Cr	₹9 Cr	+6.7%
EBITDA Margin	3.3%	4.2%	-19.1%	14.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹20 Cr	₹1 Cr	-3.9%
EPS	₹1.14	₹0.93	₹-20.89	—	—
ROE	3.7%	3.0%	-137.8%	2.4%	—
ROCE	11.3%	10.3%	-83.4%	10.7%	—
Total Debt	₹31 Cr	₹44 Cr	₹40 Cr	₹45 Cr	+13.4%
Free Cash Flow	-₹17 Cr	-₹9 Cr	₹10 Cr	-₹13 Cr	—

🔴 Revenue has shrunk at 34.6% a year over 3 years.

🟢 EBITDA has grown at 6.7% a year over 3 years.

🟢 EBITDA Margin has risen from 3.3% to 14.4% over 3 years (+11.1 pts).

🔴 PAT (Net Profit) has shrunk at 3.9% a year over 3 years.

🔴 ROE has fallen from 3.7% to 2.4% over 3 years (-1.3 pts).

🟡 ROCE has held roughly flat at 10.7% over 3 years.

🔴 Total Debt has grown at 13.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹125 Cr

Total Liabilities

₹79 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

34.6%

Corporate Actions

Ex-Dividend Date

19 Sept 2022

Peer Comparison

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

Recent News

1 mixed5 general

Vineet Laboratories (NSEI:VINEETLAB) - Stock Analysis

Simply Wall Street, 15 Oct

Vineet Laboratories confirms no encumbrance of shares in FY26

scanx.trade, 05 Oct

Vineet Laboratories Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Vineet Laboratories Share Price Target 2026: Rs 41.1 Analyst Forecast

Univest, 26 JunAnalyst view

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

HESTER BIOSCIENCES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

Vineet Laboratories Rights Issue 2025 Date, Price, Allotment, Ratio

IPO Watch, 29 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Valuation

WeakFinancial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑