Vinyoflex Limited

Basic Materials — Specialty Chemicals · BSE

₹48.60−₹1.40 (−2.80%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Vinyoflex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vinyoflex Limited manufactures and sells PVC films and sheets in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Annual revenue₹40 Cr

How does it make money?

Turns over ₹40 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 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?Little sign of one

Returns on capital of 11.8% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -28% while net margin moved +29% 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-28%

Margin effect+29%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.5% a year
✗ Profit has declined at 2.5% a year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

88/ 100

Cheap

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

6.1x

3Y Median

9.2x

40 monthly readings · mean 9.6x · range 6.1x–15.0x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 3y median of 9.2x. 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 85% below the peer median of 40.4x.

vs. its own history

Cheap

9.2x median over 40 months · -33%

vs. sector peers

Cheap

40.4x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.4x

PEG

0.17

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.5% to 12.3% over 3 years.
Cash generation is improving
Free cash flow is up 312% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.1% to 8.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.5% to 11.8% — often a sign of competition or overexpansion.

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?

Margin expansion has further to run
EBITDA margin has risen from 9.5% to 12.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 33% 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 85% 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?

Returns on shareholder capital are falling
ROE has dropped from 13.1% to 8.9%. 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 10%✓ 12.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 9%✓ 11.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 9.2x✓ 6.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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 · 6 neutral · 0 weak

Market Cap

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.1x

Cheap

Cheap against the generic band

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.94

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

4.3%

Modest

Modest growth

Profit Growth (YoY)

35.7%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

6.7%

Average

Average asset productivity

Operating Margin

11.0%

Average

Average margins

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

10.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.92

Market-like

Moves roughly in line with the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

49.9 / 51.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹56 Cr	₹46 Cr	₹42 Cr	₹40 Cr	-10.5%
EBITDA	₹5 Cr	₹6 Cr	₹4 Cr	₹5 Cr	-2.5%
EBITDA Margin	9.5%	12.3%	9.8%	12.3%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-2.5%
EPS	₹8.03	₹8.52	₹5.98	₹7.43	-2.6%
ROE	13.1%	12.2%	7.9%	8.9%	—
ROCE	15.5%	16.3%	10.4%	11.8%	—
Total Debt	₹5 Cr	₹1 Cr	₹1 Cr	—	—
Free Cash Flow	₹0 Cr	₹6 Cr	₹0 Cr	₹2 Cr	+60.2%

🔴 Revenue has shrunk at 10.5% a year over 3 years.

🔴 EBITDA has shrunk at 2.5% a year over 3 years.

🟢 EBITDA Margin has risen from 9.5% to 12.3% over 3 years (+2.8 pts).

🔴 PAT (Net Profit) has shrunk at 2.5% a year over 3 years.

🔴 EPS has shrunk at 2.6% a year over 3 years.

🔴 ROE has fallen from 13.1% to 8.9% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 15.5% to 11.8% over 3 years (-3.7 pts).

🟢 Free Cash Flow has grown at 60.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.7%

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 negative3 general

Vinyoflex AGM resolutions pass with 99.99% assent

scanx.trade, 25 Sept

Vinyoflex sets Sept 18 record date for 33rd AGM on Sept 25

scanx.trade, 31 Aug

Railtel Corporation of India standalone net profit declines 0.48% in the June 2026 quarter

Business Standard, 31 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

5 Best Performing Penny Stocks of 2023 so far. Will their Dream Run Continue?

Equitymaster, 10 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · 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.

All 4 tripwires holding · see Key things to watch ↑