Vipul Organics Limited

Basic Materials — Specialty Chemicals · BSE

₹239.95−₹5.05 (−2.06%)

DalalBaazaar Score

53 / 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, 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, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vipul Organics Limited manufactures and trades in dyestuffs, organic pigments, and organic intermediates in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees143

Annual revenue₹173 Cr

How does it make money?

Turns over ₹173 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 143 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

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 8.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +31% while net margin moved +182% 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+31%

Margin effect+182%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.9% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

52/ 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

51.3x

3Y Median

99.6x

40 monthly readings · mean 102.4x · range 59.0x–197.9x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 3y median of 99.6x. 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 27% above the peer median of 40.4x.

vs. its own history

Cheap

99.6x median over 40 months · -49%

vs. sector peers

Expensive

40.4x median of 4 peers · +27%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.0x

PEG

0.94

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.8% to 10.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹32 Cr to ₹54 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Receivables growing faster than salesFinancial
Receivables up 60% against revenue up 31% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.8% to 10.5%. 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 49% 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.
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?

Sales are being booked faster than collected
Receivables are up 60% against revenue up 31%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 27% above the peer median. That premium needs a reason that persists, or it closes.
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
2 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 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 3.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.4% CAGR
Latest reported year was 37.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✓ 8.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 4 neutral · 3 weak

Market Cap

₹457 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.68

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

37.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

54.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.9%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

257.7 / 258.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

24.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹133 Cr	₹149 Cr	₹161 Cr	₹173 Cr	+9.4%
EBITDA	₹12 Cr	₹12 Cr	₹15 Cr	₹18 Cr	+16.0%
EBITDA Margin	8.8%	7.9%	9.1%	10.5%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹4 Cr	₹7 Cr	+54.5%
EPS	₹1.18	₹2.09	₹2.7	₹3.84	+48.1%
ROE	3.5%	5.7%	6.9%	5.9%	—
ROCE	8.3%	11.2%	12.1%	8.8%	—
Total Debt	₹32 Cr	₹31 Cr	₹48 Cr	₹54 Cr	+18.8%
Free Cash Flow	₹7 Cr	-₹2 Cr	-₹15 Cr	-₹24 Cr	—

🟢 Revenue has grown at 9.4% a year over 3 years.

🟢 EBITDA has grown at 16.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.8% to 10.5% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 54.5% a year over 3 years.

🟢 EPS has grown at 48.1% a year over 3 years.

🟢 ROE has risen from 3.5% to 5.9% over 3 years (+2.4 pts).

🟡 ROCE has held roughly flat at 8.8% over 3 years.

🔴 Total Debt has grown at 18.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹231 Cr

Total Liabilities

₹114 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.9%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

23 Sept 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

3 mixed3 general

Vipul Organics Limited Actuals & Estimates (BSE:VIPULORG)

TradingView, 14 Oct

Vipul Organics Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Vipul Organics shareholders approve all resolutions at 54th AGM

scanx.trade, 05 Oct

Vipul Organics Ltd. Share Price Up 8.54%: Stock Analysis

Univest, 20 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Multibagger Low-Debt Chemical Company Q1 PAT Rises 100%, Begins Production at Gujarat Plant

Dalal Street Investment Journal, 22 AugFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Vipul Organics surges after commencing operations at greenfield Sayakha facility

Business Standard, 20 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

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

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑