Vivaa Tradecom Limited

Consumer Cyclical — Apparel Manufacturing · BSE

₹135.00+₹3.90 (+2.97%)

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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vivaa Tradecom Limited engages in the trading of textiles and laminated sheets in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Annual revenue₹285 Cr

How does it make money?

Turns over ₹285 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 3.6% 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 ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +113% while net margin moved -0% 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+113%

Margin effect-0%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

25/ 100

Expensive

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

83.3x

3Y Median

23.0x

38 monthly readings · mean 32.6x · range 14.8x–69.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 262% above its 3y median of 23.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 20% above the peer median of 69.2x.

vs. its own history

Expensive

23.0x median over 38 months · +262%

vs. sector peers

Expensive

69.2x median of 4 peers · +20%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

38.1x

PEG

2.92

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
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

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 171% against revenue up 113% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 171% against revenue up 113%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 262% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1Revenue growth stays above 21% a year✓ 28.6% CAGR
Latest reported year was 23.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹53 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

83.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.37x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.62

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

23.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-92.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.8%

Weak

Assets generate little profit

Operating Margin

0.3%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.09

Defensive

Steadier than the market

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

135.4 / 127.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹134 Cr	₹198 Cr	₹288 Cr	₹285 Cr	+28.6%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+9.7%
EBITDA Margin	0.8%	0.6%	0.4%	0.5%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+28.5%
EPS	₹0.76	₹2.25	₹1.93	—	—
ROE	2.4%	3.3%	3.5%	2.8%	—
ROCE	5.2%	3.8%	4.2%	3.6%	—
Total Debt	₹5 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-3.4%
Free Cash Flow	₹2 Cr	-₹8 Cr	-₹0 Cr	₹0 Cr	-56.5%

🟢 Revenue has grown at 28.6% a year over 3 years.

🟢 EBITDA has grown at 9.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.5% over 3 years.

🟢 PAT (Net Profit) has grown at 28.5% a year over 3 years.

🟡 ROE has held roughly flat at 2.8% over 3 years.

🔴 ROCE has fallen from 5.2% to 3.6% over 3 years (-1.6 pts).

🟢 Total Debt has shrunk at 3.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 56.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹98 Cr

Total Liabilities

₹76 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.9%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Compare with

Equitymaster, 16 Oct

Vivaa Tradecom share price debuts on BSE SME at 20% discount to issue price

Livemint, 12 Oct

Vivaa Tradecom IPO: Price band, GMP, subscription status on day 2, other key details as SME issue opens

Livemint, 28 Sept

Shine Fashions (India) (BSE:543244) - Stock Analysis

Simply Wall Street, 04 Nov

Plaza Wires share price extends gain after giving strong listing gain to allottees. Buy, sell or hold?

Livemint, 12 OctPrice 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.

PRASHANT INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 06 Dec

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingRisk

WeakBusiness Quality · Profitability · Valuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; ROCE stays above 8% · see Key things to watch ↑