Voith Paper Fabrics India Limited

Basic Materials — Paper & Paper Products · NSE

₹1,365.00−₹35.00 (−2.50%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Voith Paper Fabrics India Limited engages in the manufacture and trading of paper machine clothing for pulp, and paper and paperboard industries in India and internationally.

IndustryPaper & Paper Products

SectorBasic Materials

Employees136

Annual revenue₹207 Cr

How does it make money?

Turns over ₹207 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 136 employees supports ₹1.52 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.52 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 12.7% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +27% while net margin moved +3% 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+27%

Margin effect+3%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 8.3% is steady
• Profit CAGR of 9.3%
✗ Latest-year revenue growth of -1.2% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.4x

Sector Median

28.7x

median of 4 sector peers

🟢Against its sector it trades 50% below the peer median of 28.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

28.7x median of 4 peers · -50%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.8x

PEG

1.56

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 32.1% to 36.4% over 3 years.
Cash generation is improving
Free cash flow is up 255% over 3 years.
Very low debt
Debt/Equity of 0.05x 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

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?

Margin expansion has further to run
EBITDA margin has risen from 32.1% to 36.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 50% 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 ₹20 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?

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 34%✓ 36.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.3% CAGR
Latest reported year was -1.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹600 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.4x

Cheap

Cheap against the generic band

P/B Ratio

1.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹94.51

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.05x

Low

Conservative leverage

Revenue Growth (YoY)

-1.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.4%

Modest

Slow profit growth

Dividend Yield

0.73%

Modest

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

Free Cash Flow

₹20 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

23.9%

Good

Healthy core-business profitability

Net Margin

19.9%

Good

Strong bottom-line conversion

Current Ratio

9.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

RSI (14)

37.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹163 Cr	₹178 Cr	₹188 Cr	₹207 Cr	+8.3%
EBITDA	₹52 Cr	₹60 Cr	₹67 Cr	₹75 Cr	+12.8%
EBITDA Margin	32.1%	33.7%	35.7%	36.4%	—
PAT (Net Profit)	₹32 Cr	₹36 Cr	₹40 Cr	₹41 Cr	+9.3%
EPS	₹72.34	₹82.67	₹90.87	₹94.36	+9.3%
ROE	10.1%	10.4%	10.4%	9.8%	—
ROCE	13.4%	13.8%	13.7%	12.7%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	₹6 Cr	₹0 Cr	₹4 Cr	₹20 Cr	+52.6%

🟢 Revenue has grown at 8.3% a year over 3 years.

🟢 EBITDA has grown at 12.8% a year over 3 years.

🟢 EBITDA Margin has risen from 32.1% to 36.4% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has grown at 9.3% a year over 3 years.

🟢 EPS has grown at 9.3% a year over 3 years.

🟡 ROE has held roughly flat at 9.8% over 3 years.

🟡 ROCE has held roughly flat at 12.7% over 3 years.

🟢 Free Cash Flow has grown at 52.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹472 Cr

Total Liabilities

₹48 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹42 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

12 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive5 general

Voith Paper Fabrics shareholders approve Asesh Kumar Mukherjee as MD

scanx.trade, 17 Oct

Voith Paper Fabrics India Ltd Falls to 52-Week Low of Rs 1340 Amidst Prolonged Downtrend

MarketsMojo, 16 Oct

VOITHPAPR Stock Price and Chart — NSE:VOITHPAPR

TradingView, 17 Aug

Voith Paper Fabrics India Ltd. 52 Week Low Streak Analysis

Univest, 12 Oct

Voith Paper Fabrics India Schedules Board Meeting on May 20, 2026 to Consider Q4FY26 Results and Dividend

scanx.trade, 20 MayCapital return

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

Voith Paper Fabrics: Krishna Kumar ceases as MD after AGM rejection

scanx.trade, 19 Aug

Watch Items

Revenue growth is negative (-1.2%) 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑