Vinyl Chemicals (India) Limited

Basic Materials — Specialty Chemicals · NSE

₹204.79+₹2.01 (+0.99%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, but sales are shrinking. 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 Vinyl Chemicals (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vinyl Chemicals (India) Limited engages in the trading of chemicals in India. The company trades in vinyl acetate monomer. The company was incorporated in 1986 and is based in Mumbai, India.

IndustrySpecialty Chemicals

SectorBasic Materials

Annual revenue₹632 Cr

How does it make money?

Turns over ₹632 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, 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?Some evidence

ROCE of 16.8% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -34% while net margin moved -30% 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-34%

Margin effect-30%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.1% a year
✗ Profit has declined at 22.7% a year
✗ Latest-year revenue growth of -34.1% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

65/ 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

20.1x

3Y Median

22.7x

40 monthly readings · mean 22.8x · range 13.6x–34.5x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 22.7x. 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 50% below the peer median of 40.4x.

vs. its own history

Fair

22.7x median over 40 months · -11%

vs. sector peers

Cheap

40.4x median of 4 peers · -50%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.3x

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 31.5% to 12.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.6% to 16.8% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Receivables growing faster than salesFinancial
Receivables up 295% against revenue up -34% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 54% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 50% 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 4.8% to 2.1%. 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 295% against revenue up -34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 31.5% to 12.7%. 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 0%✓ 2.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 14%✓ 16.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 22.7x✓ 20.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

5 good · 4 neutral · 2 weak

Market Cap

₹376 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.19

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

16.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

-34.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

49.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.42%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

2.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

212.9 / 224.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹962 Cr	₹570 Cr	₹597 Cr	₹632 Cr	-13.1%
EBITDA	₹46 Cr	₹25 Cr	₹28 Cr	₹13 Cr	-34.1%
EBITDA Margin	4.8%	4.4%	4.7%	2.1%	—
PAT (Net Profit)	₹36 Cr	₹22 Cr	₹22 Cr	₹16 Cr	-22.7%
EPS	₹19.44	₹11.91	₹12.17	₹8.99	-22.7%
ROE	31.5%	18.7%	17.6%	12.7%	—
ROCE	42.6%	25.3%	23.9%	16.8%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+0.0%
Free Cash Flow	-₹21 Cr	₹36 Cr	₹24 Cr	-₹17 Cr	—

🔴 Revenue has shrunk at 13.1% a year over 3 years.

🔴 EBITDA has shrunk at 34.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.8% to 2.1% over 3 years (-2.7 pts).

🔴 PAT (Net Profit) has shrunk at 22.7% a year over 3 years.

🔴 EPS has shrunk at 22.7% a year over 3 years.

🔴 ROE has fallen from 31.5% to 12.7% over 3 years (-18.8 pts).

🔴 ROCE has fallen from 42.6% to 16.8% over 3 years (-25.9 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹233 Cr

Total Liabilities

₹103 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.9%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

22 May 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive5 general

Vinyl Chemicals India shares at a crossroads as 2026 outlook splits between recovery and risk

Indiatimes, 01 Oct

Vinyl Chemicals (India) Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

JKIPL Stock Price and Chart — NSE:JKIPL

TradingView, 15 Oct

Vinyl Chemicals (India) Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Vinyl Chemicals VINYLINDIA Trading Window Closure Sep 2026

Kalkine India, 24 Sept

Vinyl Chemicals declares ₹7 dividend, re-appoints Managing Director

scanx.trade, 23 JunCapital return

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

Watch Items

Revenue growth is negative (-34.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

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