Check Before You Invest : Vital Chemtech Ltd

Snapshot

Q.1 Which industry/sub-sector does Vital Chemtech Ltd belong to?

Vital Chemtech Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Vital Chemtech Ltd a good quality company?

Vital Chemtech Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Vital Chemtech Ltd undervalued or overvalued?

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

Q.4 Is Vital Chemtech Ltd a good buy now?

Vital Chemtech Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vital Chemtech Ltd?

Vital Chemtech Ltd revenue growth is 18.2% for FY-2025, which is below its 3-year CAGR of 27.79%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vital Chemtech Ltd?

Vital Chemtech Ltd Return on capital employed is 7.53% for FY-2025, which is in line with its 3-year historical median of 7.53%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vital Chemtech Ltd?

Vital Chemtech Ltd Return on Asset is 3.65%, which is in line with its 3-year historical median of 3.65%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vital Chemtech Ltd?

Vital Chemtech Ltd Return on equity is 5.04% for FY-2025, which is in line with its 3-year historical median of 5.04%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Vital Chemtech Ltd?

Vital Chemtech Ltd Cash conversion cycle is 88 days, in line with its 3-year historical median of 88 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.95	0.95
ROE	5.04	5.04
ROCE	7.53	7.53
Cash Conversion Cycle	88 days	88 days

Q.6 Gross Profit margin of Vital Chemtech Ltd?

Vital Chemtech Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is in line with its 3-year median of 7.4%, indicating stable margins.

Q.7 Operating Profit Margin of Vital Chemtech Ltd?

Vital Chemtech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.37% for FY-2025, which is in line with its 3-year median of 6.37% indicating stable margins.

Q.8 Net Profit Margin of Vital Chemtech Ltd?

Vital Chemtech Ltd Net Profit Margin is 3.85% for FY-2025, is in line with with its 3-year median of 3.95%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	7.4	7.4
Operating Profit Margin	6.37	6.37
Net Profit Margin	3.85	3.95

Q.9 Debt to Equity ratio of Vital Chemtech Ltd?

Vital Chemtech Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vital Chemtech Ltd?

Vital Chemtech Ltd Debt to cash flow from operations is 0.5, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vital Chemtech Ltd?

Promoters hold 73.43% of the Vital Chemtech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vital Chemtech Ltd vs industry peers?

Vital Chemtech Ltd revenue CAGR is 27.79%, compared to the industry median CAGR of 5.98%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	18.2	6
Gross Profit Growth	28.6	6.3
Operating Profit Growth	60	4.1
Net Profit Growth	25	1.4

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.95	0.97
ROE	5.04	8.26
ROCE	7.53	10.49
Cash Conversion Cycle (days)	88.03	65

Valuation & price assessment

Q.1 Stock return of Vital Chemtech Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -13.46% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-13.5%	-7.1%

Q.3 Valuation ratios of Vital Chemtech Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	31.24	31.16	31.91
Price to Book	1.54	2.01	2.28
Price to Sales	1.2	1.72	1.88
EV to EBITDA	15.38	17.95	15.86

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