Vikram Thermo (530477)
CyclicalFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹174.5 |
| Market Cap | ₹547.19 Cr |
| P/E Ratio | 13.87 |
| ROCE | 35.47% |
| ROE | 32.39% |
| Dividend Yield | 0.66% |
| Profit Growth | 12.07% |
| Debt/Equity | — |
| Sales Growth | -0.87% |
| 52-Week Range | ₹133.2 — ₹184 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹33.26 |
Strengths
- Very high ROE of 32.39% and ROCE of 35.47% show efficient capital use.
- P/E of 13.87 and PEG of 1.15 offer reasonable valuation for the current profit growth rate.
- Profit rose 12.07% despite flat sales, indicating margin discipline.
- Latest quarter net profit of ₹11 Cr on ₹34 Cr sales shows strong recent profitability.
Concerns
- Sales declined 0.87%, so growth is coming from margins, not demand.
- P/B of 5.25 against book value of ₹33.26 leaves little Graham-style margin of safety.
- Commodity chemical industry suggests weak pricing power and possible earnings cyclicality.
- Piotroski F-score of 6/9 and dividend yield of 0.66% are only moderate and offer limited protection.
AI Analysis
At ₹174.50, Vikram Thermo has a market cap of ₹547 Cr. The headline P/E of 13.87 looks reasonable, but I have to ask what I'm really buying. This is a commodity chemical business, which means pricing power is likely weak. The reported ROE of 32.39% and ROCE of 35.47% are outstanding at first glance, and with a book value of ₹33.26, the company is earning a lot on equity. Yet I am uncomfortable paying 5.25 times book for a business whose sales have fallen 0.87%. Profit grew 12.07% while sales declined; that tells me margins did the work, and in a commodity business, fat margins can attract competition and get squeezed. The latest quarter shows sales of ₹34 Cr and net profit of ₹11 Cr, a very high net margin, but I would need proof that this is durable. The Piotroski score of 6/9 is mediocre, and the dividend yield of 0.66% means I am not being paid to wait. At a PEG of 1.15, the valuation is not unreasonable if profit growth continues, but with revenue falling, that is a big if. FairStock's 52/100 score matches my mixed feeling. I would not call this a Graham bargain; the price-to-book is too rich for a commodity name. Nor is it a clear Buffett-style franchise, because there is no evident moat. I would only invest at a price that offers a real margin of safety, or after seeing a return to top-line growth. Right now, this is a watch-and-wait situation, not a committed buy.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer