Vishnu Chemicals (VISHNU)
CyclicalFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹608.1 |
| Market Cap | ₹4,093.44 Cr |
| P/E Ratio | 27.32 |
| ROCE | 18.07% |
| ROE | 11% |
| Dividend Yield | 0.05% |
| Profit Growth | 76.99% |
| Debt/Equity | 0.49 |
| Sales Growth | 16.43% |
| Promoter Holding | 69.21% |
| 52-Week Range | ₹443.7 — ₹743.35 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹148.46 |
Strengths
- ROCE of 18.07% shows decent capital efficiency.
- Debt/Equity of 0.42 is manageable and not over-leveraged.
- Promoter holding of 69.21% aligns management with minority shareholders.
- Sales growth of 10.80% indicates continued demand for the company's products.
Concerns
- P/E of 24.51 and P/B of 6.17 are expensive relative to ROE of 11%.
- Profit growth fell 1.86% despite sales growth, indicating margin pressure.
- Piotroski F-Score of 4/9 suggests weak financial health.
- Dividend yield of 0.06% provides negligible income; FairStock Score of 28/100 highlights risk.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer