Visaka Industries Limited

Industrials — Building Products & Equipment · NSE

₹90.55+₹1.38 (+1.55%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Visaka Industries Limited manufactures and sells manufacture of cement fibre sheets, fibre cement boards and panels, solar panels, and synthetic yarn in India and internationally. It operates through two segments, Building Products and Synthetic Yarn.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees1,844

Annual revenue₹1,664 Cr

How does it make money?

Turns over ₹1,664 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,844 employees supports ₹90.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹90.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 14.6% 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.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved +58% 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+1%

Margin effect+58%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

87/ 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

9.1x

3Y Median

626.5x

40 monthly readings · mean 479.7x · range 8.5x–1119.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 99% below its 3y median of 626.5x. 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 90% below the peer median of 88.8x.

vs. its own history

Cheap

626.5x median over 40 months · -99%

vs. sector peers

Cheap

88.8x median of 3 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.3x

PEG

0.54

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 22% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 6.9% to 10.3%.
Return on capital is rising
ROCE has improved from 10.0% to 14.6%.

🔴 What Needs Attention0

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

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?

Deleveraging frees up earnings
Debt is down 22% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 99% 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 90% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹146 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 0.3% 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.
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 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 4% a year✗ 0.3% CAGR
Latest reported year was 16.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹146 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 12%✓ 14.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹782 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.1x

Cheap

Cheap against the generic band

P/B Ratio

0.95x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.94

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

14.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

16.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.2%

Modest

Slow profit growth

Dividend Yield

2.43%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹146 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.7%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

88.0 / 90.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,647 Cr	₹1,522 Cr	₹1,528 Cr	₹1,664 Cr	+0.3%
EBITDA	₹150 Cr	₹98 Cr	₹107 Cr	₹145 Cr	-1.2%
EBITDA Margin	9.1%	6.4%	7.0%	8.7%	—
PAT (Net Profit)	₹54 Cr	₹1 Cr	-₹3 Cr	₹85 Cr	+16.8%
EPS	₹6.2	₹0.1	₹-0.35	₹9.88	+16.8%
ROE	6.9%	0.1%	-0.4%	10.3%	—
ROCE	10.0%	4.0%	4.5%	14.6%	—
Total Debt	₹387 Cr	₹538 Cr	₹479 Cr	₹303 Cr	-7.9%
Free Cash Flow	-₹199 Cr	-₹116 Cr	₹84 Cr	₹146 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.3% a year).

🟡 EBITDA has been broadly flat over 3 years (-1.2% a year).

🟡 EBITDA Margin has held roughly flat at 8.7% over 3 years.

🟢 PAT (Net Profit) has grown at 16.8% a year over 3 years.

🟢 EPS has grown at 16.8% a year over 3 years.

🟢 ROE has risen from 6.9% to 10.3% over 3 years (+3.4 pts).

🟢 ROCE has risen from 10.0% to 14.6% over 3 years (+4.6 pts).

🟢 Total Debt has shrunk at 7.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹199 Cr to ₹146 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,349 Cr

Total Liabilities

₹522 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹183 Cr

Capex

-₹37 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.5%

Corporate Actions

Dividend Rate

₹2.2

Ex-Dividend Date

13 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive5 general

Is Now The Time To Put Visaka Industries (NSE:VISAKAIND) On Your Watchlist?

Simply Wall Street, 16 Oct

Visaka Industries Stock Signals to Watch This Week

Univest, 24 Sept

Visaka Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Visaka Industries EBITDA jumps 79% in Q1FY27 on volume growth

scanx.trade, 12 Oct

Visaka Industries consolidated net profit rises 1.04% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Visaka Industries Upper Circuit Today: Price, Data and Peers

Univest, 09 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year · see Key things to watch ↑