Vinny Overseas Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹0.87+₹0.02 (+2.35%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vinny Overseas Limited engages in the manufacture and processing of textile fabrics in India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees77

Annual revenue₹124 Cr

How does it make money?

Turns over ₹124 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 77 employees supports ₹1.61 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.61 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 2.5% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved -67% 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+17%

Margin effect-67%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.5% — barely ahead of inflation
✗ Profit has declined at 27.4% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 50.0% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

42/ 100

Expensive

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

87.0x

3Y Median

17.2x

40 monthly readings · mean 29.1x · range 6.9x–72.1x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 407% above its 3y median of 17.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 26% above the peer median of 69.2x.

vs. its own history

Expensive

17.2x median over 40 months · +407%

vs. sector peers

Expensive

69.2x median of 4 peers · +26%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

6.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.7% to 1.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.6% to 2.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.0x to 2.5x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 62% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 41% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The price already assumes success
The stock trades 407% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.5% 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.
Returns on shareholder capital are falling
ROE has dropped from 8.7% to 1.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.5% CAGR
Latest reported year was 32.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

4 / 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 · 2 neutral · 5 weak

Market Cap

₹40 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

87.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

32.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-50.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.1%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.9 / 1.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹105 Cr	₹111 Cr	₹121 Cr	₹124 Cr	+5.5%
EBITDA	₹8 Cr	₹11 Cr	₹14 Cr	₹8 Cr	+0.1%
EBITDA Margin	8.0%	9.7%	11.3%	6.9%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹5 Cr	₹1 Cr	-27.4%
EPS	₹0.07	₹0.11	₹0.14	₹0.02	-34.4%
ROE	8.7%	11.3%	6.3%	1.1%	—
ROCE	12.6%	17.1%	9.4%	2.5%	—
Total Debt	₹18 Cr	₹16 Cr	₹5 Cr	₹16 Cr	-2.7%
Free Cash Flow	-₹1 Cr	₹5 Cr	-₹25 Cr	-₹4 Cr	—

🟢 Revenue has grown at 5.5% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.1% a year).

🔴 EBITDA Margin has fallen from 8.0% to 6.9% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 27.4% a year over 3 years.

🔴 EPS has shrunk at 34.4% a year over 3 years.

🔴 ROE has fallen from 8.7% to 1.1% over 3 years (-7.5 pts).

🔴 ROCE has fallen from 12.6% to 2.5% over 3 years (-10.2 pts).

🟢 Total Debt has shrunk at 2.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹124 Cr

Total Liabilities

₹41 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹20 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.3%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Vinny Overseas (VINNY) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Vinny Overseas Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

Vinny Overseas Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Vinny Overseas promoter declares no share encumbrance in FY26

scanx.trade, 06 Jun

Compare Company

Equitymaster, 26 Sept

Vinny Overseas (NSE:VINNY): What Does Its Reg 74(5) Certificate for Q2 FY27 Indicate?

Kalkine India, 10 OctResults

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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.

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