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Check Before You Invest : Vidhi Specialty Food Ingredients Ltd

BSE: 531717 NSE: VIDHIING ISIN: INE632C01026
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Dyes & Pigments

Snapshot

Q.1 Which industry/sub-sector does Vidhi Specialty Food Ingredients Ltd belong to?
Vidhi Specialty Food Ingredients Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Dyes & Pigments segment.
Q.2 Is Vidhi Specialty Food Ingredients Ltd a good quality company?
Vidhi Specialty Food Ingredients Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vidhi Specialty Food Ingredients Ltd undervalued or overvalued?
Vidhi Specialty Food Ingredients Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 31.01 41.13
Price to Book 4.6 7.88
Price to Sales 4.05 4.82
EV to EBITDA 19.01 28.34
Q.4 Is Vidhi Specialty Food Ingredients Ltd a good buy now?
Vidhi Specialty Food Ingredients Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd revenue growth is 28.3% for FY-2025, which is above its 5-year CAGR of 11.22%, indicating faster growth.

Q.2 Gross Profit margin of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.7% for FY-2025, which is in line with its 5-year median of 17.7%, indicating stable margins.

Q.3 Operating Profit Margin of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.92% for FY-2025, which is in line with its 5-year median of 17.92% indicating stable margins.

Q.4 Net Profit Margin of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Net Profit Margin is 11.4% for FY-2025, is in line with its 5-year median of 11.4%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.7 17.7
Operating Profit Margin (%) 17.92 17.92
Net Profit Margin (%) 11.4 11.4

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Return on Asset is 12.06%, which is in line with its 5-year historical median of 12.06%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Return on capital employed is 18.79% for FY-2025, which is in line with its 5-year historical median of 18.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Return on equity is 14.94% for FY-2025, which is below its 5-year historical median of 16.15%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Cash conversion cycle is 146 days, in line with its 5-year historical median of 142 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.06 1.18
ROE (%) 14.94 16.15
ROCE (%) 18.79 18.79
Cash Conversion Cycle 146 days 142 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Debt-to-Equity ratio is 0.21, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vidhi Specialty Food Ingredients Ltd?
Vidhi Specialty Food Ingredients Ltd Debt to cash flow from operations is -14.06, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vidhi Specialty Food Ingredients Ltd?

Q.1 Promoter shareholding and pledge status of Vidhi Specialty Food Ingredients Ltd?
Promoters hold 64.27% of the Vidhi Specialty Food Ingredients Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vidhi Specialty Food Ingredients Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vidhi Specialty Food Ingredients Ltd vs industry peers?
Vidhi Specialty Food Ingredients Ltd revenue CAGR is 11.22%, compared to the industry median CAGR of 5.57%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 28.3 5.6
Gross Profit Growth (%) 23.6 3.5
Operating Profit Growth (%) 21.1 4.7
Net Profit Growth (%) 18.9 0.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.06 0.91
ROE (%) 14.94 7.16
ROCE (%) 18.79 9.19
Cash Conversion Cycle (days) 145.88 76

Valuation & price assessment

Q.1 Stock return of Vidhi Specialty Food Ingredients Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.7% 7% -8.6% -32.1%
Q.2 Valuation ratios of Vidhi Specialty Food Ingredients Ltd vs historical?
The current P/E ratio of 31.01 is lower than its historical median of 41.13, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 31.01 41.13 18.95
Price to Book 4.6 7.88 1.45
Price to Sales 4.05 4.82 1.23
EV to EBITDA 19.01 28.34 11.35

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