Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.
In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:02 pm
Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.
The 60-second version of V.I.P. Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
V.I.P. Industries Limited manufactures and retails luggage, backpacks, handbags, and accessories in India and internationally. It offers hard luggage, soft luggage, duffle bags, backpacks, business satchels, and ladies' handbags.
IndustryFootwear & Accessories
SectorConsumer Cyclical
Employees4,453
Annual revenue₹1,852 Cr
How does it make money?
Turns over ₹1,852 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹-13 left at the operating level before interest, tax and depreciation. Each of its 4,453 employees supports ₹41.6 lakh of revenue a year, the signature of a people-led business.
EBITDA margin-13.0%
Net margin-18.3%
Revenue / employee₹41.6 lakh
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.
MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%
TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%
TRENT LTDP/E 87.2x · ROE 25.9%
AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%
What is its competitive advantage?Little sign of one
Returns on capital of -50.6% 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.
ROCE-50.6%
ROE-116.8%
Peer median ROE25.9%
What is the outlook?
7 analysts covering the stock expect revenue to grow about 15.9% and earnings to grow about 135.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.
Est. revenue growth+15.9%
Est. earnings growth+135.0%
Analysts7
What has been driving growth?
Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -11% while net margin moved -349% 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-11%
Margin effect-349%
DalalBaazaar Score
23/ 100
Weak
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 3.8% a year
✗ Profit fell 391.4% in the latest year
Quality vs. Valuation
Company Quality
23/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
21/ 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.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
18.40x
EV/EBITDA
—
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well1
Cash generation is improving
Free cash flow is up 96% over 3 years.
🔴 What Needs Attention5
Margins are compressing
EBITDA margin has slipped from 15.7% to -13.0% over 3 years.
Debt is rising
Total debt is up 109% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 23.7% to -116.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.1% to -50.6% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.94 — near-term obligations exceed near-term assets.
Red Flags
7 items require attention · 5 high · 2 watch
🔴Debt has risen sharplyFinancial
Total debt is up 109% over 3 years, from ₹352 Cr to ₹738 Cr.
🔴High leverageFinancial
Debt/Equity of 3.36x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -5.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹338 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 28.7 points, from 15.7% to -13.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.6x to -5.9x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.94 — near-term obligations exceed near-term assets.
Investment Thesis
🟢 Bull CaseWhat could make this work?
No clear supporting case emerges from the available numbers.
🔴 Bear CaseWhat could go wrong?
Margins are being competed away
EBITDA margin has fallen from 15.7% to -13.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.36x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 23.7% to -116.8%. 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.
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.
🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today
1EBITDA margin holds above -15%✓ -13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -5.9x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹133 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -50.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
Investment Checklist
4 / 12 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
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish
Price history
Quick Metrics
1 good · 3 neutral · 7 weak
Market Cap
₹3,841 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
18.40x
Rich
Steep premium to book — needs high, durable returns to justify
EPS (TTM)
₹-27.65
Loss-making
Negative earnings per share — the business is losing money
ROE
-116.8%
Weak
Weak capital efficiency
ROCE
-50.6%
Weak
Low return on total capital employed
Debt/Equity
3.36x
High
High leverage
Revenue Growth (YoY)
3.0%
Modest
Modest growth
Profit Growth (YoY)
-391.4%
Falling
Profits are shrinking
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
₹133 Cr
Cash generative
Generates cash even after funding its capex
More Metrics
CMP
₹270.4
P/E (Forward)
110.0x
Operating Margin
-7.4%
Weak
Thin margins leave little room for error
Net Margin
-20.2%
Weak
Very little revenue reaches the bottom line
Current Ratio
0.94
Adequate
Adequate, but no real cushion
Beta (vs Nifty)
0.09
Defensive
Steadier than the market
52W Range Position
3%
Near low
Near its 52-week low
Technical Snapshot
SMA 20 / SMA 50
285.5 / 298.3
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
23.5
Oversold zone
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹2,079 Cr
₹2,238 Cr
₹2,165 Cr
₹1,852 Cr
-3.8%
EBITDA
₹326 Cr
₹195 Cr
₹75 Cr
-₹242 Cr
—
EBITDA Margin
15.7%
8.7%
3.4%
-13.0%
—
PAT (Net Profit)
₹152 Cr
₹54 Cr
-₹69 Cr
-₹338 Cr
—
EPS
₹10.72
₹3.82
₹-4.84
₹-23.79
—
ROE
23.7%
8.0%
-11.2%
-116.8%
—
ROCE
28.1%
12.6%
-3.9%
-50.6%
—
Total Debt
₹352 Cr
₹871 Cr
₹751 Cr
₹738 Cr
+27.9%
Free Cash Flow
₹68 Cr
-₹232 Cr
₹249 Cr
₹133 Cr
+25.1%
🔴 Revenue has shrunk at 3.8% a year over 3 years.
🔴 EBITDA has turned negative, from ₹326 Cr to -₹242 Cr.
🔴 EBITDA Margin has fallen from 15.7% to -13.0% over 3 years (-28.7 pts).
🔴 PAT (Net Profit) has turned negative, from ₹152 Cr to -₹338 Cr.
🔴 EPS has turned negative, from ₹10.72 to ₹-23.79.
🔴 ROE has fallen from 23.7% to -116.8% over 3 years (-140.5 pts).
🔴 ROCE has fallen from 28.1% to -50.6% over 3 years (-78.7 pts).
🔴 Total Debt has grown at 27.9% a year over 3 years.
🟢 Free Cash Flow has grown at 25.1% a year over 3 years.
🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.
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
🔴Business QualityWeak4.7/20
🔴Financial HealthStretched7.1/20
🔴GrowthWeak2.4/20
🔴ProfitabilityWeak2.5/15
🔴ValuationDemanding2.6/15
🔴RiskHigh3.9/10
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. 5 high-severity red flags sit above this conclusion and should be read first.
