Check Before You Invest : Vadivarhe Speciality Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Vadivarhe Speciality Chemicals Ltd belong to?

Vadivarhe Speciality Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Vadivarhe Speciality Chemicals Ltd a good quality company?

Vadivarhe Speciality Chemicals Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Vadivarhe Speciality Chemicals Ltd undervalued or overvalued?

Vadivarhe Speciality Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Vadivarhe Speciality Chemicals Ltd a good buy now?

Vadivarhe Speciality Chemicals 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 Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd revenue growth is -5.4% for FY-2025, which is below its 5-year CAGR of 4.69%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Return on capital employed is -22.89% for FY-2025, which is below its 5-year historical median of -3.37%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Return on Asset is -21.97%, which is below its 5-year historical median of -5.6%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Return on equity is -499.06% for FY-2025, which is below its 5-year historical median of -16.97%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Cash conversion cycle is 86 days, above its 5-year historical median of 56 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	0.9	0.9
ROE	-499.06	-16.97
ROCE	-22.89	-3.37
Cash Conversion Cycle	86 days	56 days

Q.6 Gross Profit margin of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is -19.7% for FY-2025, which is below its 5-year median of -5.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -15.73% for FY-2025, which is below its 5-year median of -2.33% indicating decreasing margins.

Q.8 Net Profit Margin of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Net Profit Margin is -24.44% for FY-2025, is below with its 5-year median of -10.43%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-19.7	-5.8
Operating Profit Margin	-15.73	-2.33
Net Profit Margin	-24.44	-10.43

Q.9 Debt to Equity ratio of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Debt-to-Equity ratio is -12.98, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vadivarhe Speciality Chemicals Ltd?

Vadivarhe Speciality Chemicals Ltd Debt to cash flow from operations is -5.04, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vadivarhe Speciality Chemicals Ltd?

Promoters hold 66.83% of the Vadivarhe Speciality Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vadivarhe Speciality Chemicals Ltd vs industry peers?

Vadivarhe Speciality Chemicals Ltd revenue CAGR is 4.69%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-5.4	9.6
Gross Profit Growth	-330.9	14.3
Operating Profit Growth	-238	12
Net Profit Growth	-15,550	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	0.97
ROE	-499.06	10.68
ROCE	-22.89	13.26
Cash Conversion Cycle (days)	85.78	63

Valuation & price assessment

Q.1 Stock return of Vadivarhe Speciality Chemicals Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 8.65% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	8.7%	-6.4%	-10.6%

Q.3 Valuation ratios of Vadivarhe Speciality Chemicals Ltd vs historical?

The current P/E is lower 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	-	49.20	27.93
Price to Book	-64.81	6.78	2.22
Price to Sales	0.96	1.22	1.93
EV to EBITDA	-12.46	-7.19	14.18

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