V-MARC India Limited

Sector n/a · NSE

₹180.70+₹8.60 (+5.00%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

The 60-second version of V-MARC India 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 ₹1,797 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 42.9%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +627% while net margin moved +32% 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+627%

Margin effect+32%

DalalBaazaar Score

65/ 100

Good

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

Quality vs. Valuation

Company Quality

73/ 100

Good

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.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

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

EV/EBITDA

14.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

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 13.1% to 34.6%.
Return on capital is rising
ROCE has improved from 23.1% to 42.9%.
High return on capital employed
ROCE of 42.9% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 182% over 3 years, from ₹76 Cr to ₹214 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 649% against revenue up 627% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 42.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
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 649% against revenue up 627%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 70% a year✓ 93.7% CAGR
Latest reported year was 98.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 40%✓ 42.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 6 neutral · 0 weak

Market Cap

₹2,648 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

34.6%

Strong

Strong capital efficiency

ROCE

42.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.74x

Moderate

Moderate leverage

Revenue Growth (YoY)

98.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

177.2%

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

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

19.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

322.9 / 342.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹247 Cr	₹565 Cr	₹905 Cr	₹1,797 Cr	+93.7%
EBITDA	₹28 Cr	₹64 Cr	₹96 Cr	₹198 Cr	+92.8%
EBITDA Margin	11.2%	11.3%	10.6%	11.0%	—
PAT (Net Profit)	₹10 Cr	₹27 Cr	₹36 Cr	₹100 Cr	+112.4%
EPS	₹4.58	₹11.79	₹14.78	—	—
ROE	13.1%	25.2%	19.1%	34.6%	—
ROCE	23.1%	32.8%	28.9%	42.9%	—
Total Debt	₹76 Cr	₹141 Cr	₹175 Cr	₹214 Cr	+41.3%
Free Cash Flow	-₹18 Cr	-₹5 Cr	-₹35 Cr	₹11 Cr	—

🟢 Revenue has grown at 93.7% a year over 3 years.

🟢 EBITDA has grown at 92.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.0% over 3 years.

🟢 PAT (Net Profit) has grown at 112.4% a year over 3 years.

🟢 ROE has risen from 13.1% to 34.6% over 3 years (+21.5 pts).

🟢 ROCE has risen from 23.1% to 42.9% over 3 years (+19.8 pts).

🔴 Total Debt has grown at 41.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹18 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,025 Cr

Total Liabilities

₹735 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹109 Cr

Capex

-₹98 Cr

Recent News

2 positive2 mixed2 general

V-Marc India seeks approval for 5:1 bonus issue and capital increase

scanx.trade, 02 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

With EPS Growth And More, V-MARC India (NSE:VMARCIND) Makes An Interesting Case

Simply Wall Street, 01 Sept

V-Marc India Share Price Decline: Technicals, Fundamentals

Univest, 15 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

V-Marc India - Ashish Kacholia's picks: 12 stocks rally up to 130% in CY26, 3 turned multibaggers; 2 new Q4 bets

The Economic Times, 13 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

V-Marc India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

V-Marc India (NSE: VMARCIND) Sales Rise 102%: Profit, ROCE and P/E Explained

Kalkine India, 02 OctResults

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

Watch Items

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.

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑