Vishnu Chemicals (VISHNU)

FairStock Score: 36/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹592.95, Vishnu Chemicals is priced for perfection, and perfection is not what I see. The market cap is ₹3,377 crore, with a P/E of 24.51 and a P/B of 6.17 against book value of ₹96.15. That means I pay over six rupees for every rupee of equity, yet the company earns only an 11% return on that equity. Benjamin Graham would ask: where is the margin of safety? I do not find it. ROCE of 18.07% and debt/equity of 0.42 are respectable, and promoter holding of 69.21% aligns owners, but those virtues are already in the price. Sales have grown 10.80%, but profit has fallen 1.86%. That is poor execution: increasing revenue without translating it into higher shareholder earnings. In the latest quarter, ₹411 Cr in sales produced just ₹34 Cr in net profit, a thin net margin. With a Piotroski F-Score of 4/9, financial health is subpar, and FairStock Score of 28/100 reinforces my caution. The dividend yield of 0.06% is negligible, so the entire return depends on price appreciation. At a PEG of 2.27, even sales-led growth is not cheap. This looks like a cyclical specialty-chemical business, not a franchise with pricing power. In a downturn, earnings can compress further, and paying 24 times something that is already falling is dangerous. I would not buy; I would wait for a lower price, better margins, or proof that profit growth has returned. There is no margin of safety for the patient Indian investor.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer