Check Before You Invest : Vijay Solvex Ltd

Snapshot

Q.1 Which industry/sub-sector does Vijay Solvex Ltd belong to?

Vijay Solvex Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.

Q.2 Is Vijay Solvex Ltd a good quality company?

Vijay Solvex Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Vijay Solvex Ltd undervalued or overvalued?

Vijay Solvex Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Vijay Solvex Ltd a good buy now?

Vijay Solvex Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vijay Solvex Ltd?

Vijay Solvex Ltd revenue growth is 0.1% for FY-2025, which is below its 5-year CAGR of 4.81%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vijay Solvex Ltd?

Vijay Solvex Ltd Return on capital employed is 8.24% for FY-2025, which is in line with its 5-year historical median of 8.24%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vijay Solvex Ltd?

Vijay Solvex Ltd Return on Asset is 5.17%, which is in line with its 5-year historical median of 5.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vijay Solvex Ltd?

Vijay Solvex Ltd Return on equity is 6.26% for FY-2025, which is in line with its 5-year historical median of 6.26%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Vijay Solvex Ltd?

Vijay Solvex Ltd Cash conversion cycle is 18 days, above its 5-year historical median of 17 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	5.15	5.91
ROE	6.26	6.26
ROCE	8.24	8.24
Cash Conversion Cycle	18 days	17 days

Q.6 Gross Profit margin of Vijay Solvex Ltd?

Vijay Solvex Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.4% for FY-2025, which is in line with its 5-year median of 1.4%, indicating stable margins.

Q.7 Operating Profit Margin of Vijay Solvex Ltd?

Vijay Solvex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.72% for FY-2025, which is in line with its 5-year median of 1.72% indicating stable margins.

Q.8 Net Profit Margin of Vijay Solvex Ltd?

Vijay Solvex Ltd Net Profit Margin is 1% for FY-2025, is in line with with its 5-year median of 1%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.4	1.4
Operating Profit Margin	1.72	1.72
Net Profit Margin	1	1

Q.9 Debt to Equity ratio of Vijay Solvex Ltd?

Vijay Solvex Ltd Debt-to-Equity ratio is 0.11, which is lower with the industry average of 0.53, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vijay Solvex Ltd?

Vijay Solvex Ltd Debt to cash flow from operations is -1.48, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vijay Solvex Ltd?

Promoters hold 68.96% of the Vijay Solvex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vijay Solvex Ltd vs industry peers?

Vijay Solvex Ltd revenue CAGR is 4.81%, compared to the industry median CAGR of 6.64%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	0.1	6.6
Gross Profit Growth	316.7	5.1
Operating Profit Growth	575	10.2
Net Profit Growth	800	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	5.15	2.77
ROE	6.26	9.22
ROCE	8.24	12.95
Cash Conversion Cycle (days)	18.38	47

Valuation & price assessment

Q.1 Stock return of Vijay Solvex Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	20.6%	-22%	-8.9%	-33.8%

Q.3 Valuation ratios of Vijay Solvex Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	12.26	12.78	29.51
Price to Book	0.63	1.03	2.26
Price to Sales	0.09	0.15	0.65
EV to EBITDA	6.44	8.30	16.89

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