Vesuvius India (VESUVIUS)
CyclicalFairStock Score: 25/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹431.55 |
| Market Cap | ₹8,758.77 Cr |
| P/E Ratio | 34.25 |
| ROCE | 22.91% |
| ROE | 17.04% |
| Dividend Yield | 0.33% |
| Profit Growth | -7.13% |
| Debt/Equity | 0.01 |
| Sales Growth | 2.52% |
| Free Cash Flow | ₹65,85,500.16 Cr |
| Promoter Holding | 55.57% |
| 52-Week Range | ₹403.95 — ₹607.9 |
| Sector | Industrial Products |
| Book Value | ₹81.98 |
Strengths
- Near-zero debt with D/E ratio of 0.01 provides a financial fortress.
- High capital efficiency: ROCE of 22.91% and ROE of 17.04%.
- Promoter holding of 55.57% aligns management with minority shareholders.
- Latest quarterly net margin of ~14.5% (₹80 Cr profit on ₹551 Cr sales) shows pricing power.
Concerns
- Valuation is rich: P/E of 38.42, P/B of 7.13, and PEG of 1.82 leave no margin of safety.
- Sales growth of only 8.28% suggests the 33.87% profit growth may not be sustainable.
- Dividend yield of 0.29% is negligible, so returns depend entirely on price appreciation.
- Reported free cash flow of ₹65.86 lakh Cr appears erroneous, raising data quality doubts.
AI Analysis
What do I see here? A fine business at a price that demands perfection. Vesuvius India earns its keep in refractories, which is the unsung art of containing molten metal. That is a business with real switching costs and long-standing customer relationships. The balance sheet is spotless: debt-to-equity of 0.01, ROCE of 22.91%, and ROE of 17.04%. Promoters own 55.57%, so skin in the game is real. Latest quarter shows sales of ₹551 Cr and net profit of ₹80 Cr, roughly 14.5% net margin. Over the year, sales grew 8.28% while profit jumped 33.87% — a nice combination, but it often tells me we are at the profitable part of the cycle, not a permanent new trajectory. However, Graham taught me that price is everything. At ₹496.60, the market cap is ₹10,146 Cr, 38.42 times earnings and 7.13 times book. The dividend yield of 0.29% offers almost no comfort while I wait. The PEG of 1.82 says I am paying for growth that may not continue at this rate, especially if sales growth stays near 8%. Also, the reported free cash flow of ₹65.86 lakh Cr seems obviously misstated, so I cannot rely on that figure at all. If this were a sturdier grower with a lower P/E, I might be interested. But here, I see a high-quality cyclical trading at a premium that embeds a forecast of flawless execution. I prefer a fair price for a wonderful business, not a wonderful price for a fair business. Wait, and let the market offer margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer