Visaman Global Sales Limited

Sector n/a · NSE

₹39.20+₹1.15 (+3.02%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:07 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.

Understanding the Business

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

How does it make money?

Turns over ₹249 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin6.5%

Net margin2.4%

What is its competitive advantage?Some evidence

ROCE of 15.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.9%

ROE7.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -32% while net margin moved +684% 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-32%

Margin effect+684%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

60/ 100

Fair

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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

10.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 1.7% to 6.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 82% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 11.4% to 7.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.0% to 15.9% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 308% against revenue growth of -32% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 82% over 3 years, from ₹43 Cr to ₹79 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 308% against revenue up -32% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹56 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 54% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 1.7% to 6.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 11.4% to 7.3%. 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.
Several serious flags at once
3 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 4%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹56 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 13%✓ 15.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 6 neutral · 3 weak

Market Cap

₹83 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

7.3%

Weak

Weak capital efficiency

ROCE

15.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

-6.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

182.3%

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

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹39.2

Gross Margin

7.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.84

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

27.6 / 60.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹365 Cr	₹302 Cr	₹265 Cr	₹249 Cr	-12.1%
EBITDA	₹6 Cr	₹7 Cr	₹8 Cr	₹16 Cr	+38.3%
EBITDA Margin	1.7%	2.4%	3.0%	6.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹6 Cr	+74.7%
EPS	₹0.82	₹0.95	₹1.66	—	—
ROE	11.4%	11.5%	7.6%	7.3%	—
ROCE	33.0%	33.1%	24.8%	15.9%	—
Total Debt	₹43 Cr	₹52 Cr	₹65 Cr	₹79 Cr	+22.1%
Free Cash Flow	-₹27 Cr	₹5 Cr	₹8 Cr	-₹56 Cr	—

🔴 Revenue has shrunk at 12.1% a year over 3 years.

🟢 EBITDA has grown at 38.3% a year over 3 years.

🟢 EBITDA Margin has risen from 1.7% to 6.5% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 74.7% a year over 3 years.

🔴 ROE has fallen from 11.4% to 7.3% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 33.0% to 15.9% over 3 years (-17.1 pts).

🔴 Total Debt has grown at 22.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹168 Cr

Total Liabilities

₹85 Cr

Total Debt

₹79 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹43 Cr

Capex

-₹12 Cr

Recent News

6 general

Compare with

Equitymaster, 30 Sept

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Equitypandit, 03 Oct

Visaman Global Sales Limited IPO subscribed by nearly 40 times backed by robust retail demand

Upstox, 26 Jun

Visaman Global Sales IPO Surges 4.58x Subscription in Just 2 Days!

Alice Blue, 25 Jun

Visaman Global Sales Ltd (VISAMAN) Share Price

Business Today, 03 Jul

Visaman Global Sales promoters declare no encumbrance in FY26

scanx.trade, 06 Jun

Watch Items

Revenue growth is negative (-6.3%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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 QualityWeak8.8/20

🟡Financial HealthAdequate9.2/20

🟡GrowthModest10.5/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓EBITDA margin holds above 4%6.5%
✗Debt / EBITDA falls below 3x4.9x
✗Free cash flow remains positive-₹56 Cr
✗Interest cover stays above 3x2.3x
✓ROCE stays above 13%15.9%