NSE: VADILALIND | CMP: ₹5,352 | M-Cap: ₹3,848 Cr
Promoters still fighting, profits still rising — Vadilal is a business soap opera served in a cone. 🍧 But is the stock overfrozen or full of cream?
1. 🧐 At a Glance
Vadilal Industries is India’s #2 ice cream brand with a delicious 16% share in the ₹17,000 Cr organized ice cream market. Despite the Gandhi family feud, the business continues to post juicy double-digit profit growth and insane ROEs. It’s the rare FMCG play where small caps meet nostalgia, and exports quietly top ₹400 Cr.
2. 🎬 Introduction with Hook
Picture this:
A 117-year-old brand.
An ongoing family feud worthy of a Netflix series.
A stock that’s up 59% CAGR in 5 years.
And a product that turns Indians into kids every summer — ice cream.
If India had a Game of Thrones but with kulfi, cones and candy sticks, Vadilal would be House Gandhi. 🏰🍨
And yet, investors are licking their lips. Should they be?
3. 🍭 Business Model – WTF Do They Even Do?
Vadilal operates in two main segments:
🥶 Ice Creams (Domestic)
- Cones, Cups, Candies, Family Packs – household brand across India
- 1 lakh+ retail outlets, 1,000+ distributors, 200+ SKUs
- Competes with Amul, Mother Dairy, Havmor, Cream Bell, etc.
- Highest presence in North + West India
🥕 Processed Foods (Exports)
- Frozen Fruits & Vegetables, Pulp, RTE (Ready to Eat), RTS (Ready to Serve)
- Exported to over 50 countries (US, Canada, Australia, UAE etc.)
- Contribution: ~35% of revenue, strong margin driver
B2C Ice Cream = Branding game
B2B Processed Food = Dollar margin game 💸
4. 📈 Financials Overview – Profit, Margins, ROE, Growth
Let’s talk numbers – because paisa bolta hai:
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 463 | 698 | 1,058 | 1,125 | 1,238 |
| Net Profit (₹ Cr) | 5 | 45 | 96 | 146 | 150 |
| OPM (%) | 8% | 14% | 16% | 20% | 19% |
| ROCE (%) | 7% | 19% | 26% | 27% | 25% |
| ROE (%) | 6.4% | 62.2% | 134% | 203% | 209% |
✅ 5-Year Net Profit CAGR: 30%
✅ 5-Year Sales CAGR: 16%
✅ OPM expanded from 8% → 19%
✅ ROE went from sad to psycho
5. 💸 Valuation – Is It Cheap, Meh, or Crack?
Let’s scoop the valuation:
- CMP: ₹5,352
- TTM EPS: ₹209.15
- P/E: ~25.6x
- Book Value: ₹967 → P/B: 5.5x
🧠 Peer Comparison:
| Company | P/E | ROE % | OPM % |
|---|---|---|---|
| Hatsun Agro | 74.6x | 17.3% | 11.7% |
| Dodla Dairy | 33.6x | 19.8% | 10.3% |
| Heritage Foods | 25.3x | 20.2% | 7.9% |
| Vadilal | 25.6x | 24.3% | 19.2% |
🟢 Valuation is at a discount to Hatsun with better margins.
🟠 But volatility and family drama warrant caution.
🧮 Fair Value Range (EduInvesting Estimate):
Using 20–25x FY26E EPS (~₹250), we get:
👉 ₹5,000 – ₹6,250
6. 🍿 What’s Cooking – News, Triggers, Drama
💥 Family Feud:
The Gandhi family — Devanshu vs Rajesh — have been in a legal tussle over control. NCLAT case now closed (May 2025). Board reconstituted.
✅ Potential resolution = big upside trigger
🚚 Capex:
Relocation of old plant → capacity expansion
🌎 Exports:
US, Canada, Australia – growing frozen food demand in global Indian diaspora
🍦 Summer Seasonality:
Q1 and Q4 are peak quarters – you scream, we scream, everyone screams for ice cream
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹7 Cr |
| Reserves | ₹688 Cr |
| Borrowings | ₹218 Cr |
| D/E Ratio | ~0.3x |
| Total Assets | ₹1,096 Cr |
🟢 Healthy balance sheet
🟢 Low debt
🟠 No dividends until FY24, only 10% payout in FY25
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Est.) | CFI (Capex) | CFF (Finance) |
|---|---|---|---|---|
| FY23 | ₹39 Cr | ~₹20 Cr | -₹62 Cr | ₹9 Cr |
| FY24 | ₹192 Cr | ~₹110 Cr | -₹66 Cr | -₹114 Cr |
| FY25 | ₹130 Cr | ~₹60 Cr | -₹77 Cr | -₹61 Cr |
💧 Strong operating cash flows
🚿 Capex-funded via internal accruals — no equity dilution or debt ballooning
9. 🧮 Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Inventory Days | 167 | 146 | 188 |
| Debtor Days | 27 | 31 | 36 |
| CCC (Days) | 135 | 115 | 143 |
| ROCE % | 26% | 27% | 25% |
| ROE % | 134% | 203% | 209% |
🟢 ROCE/ROE are ice-cold gorgeous
🔴 CCC is on the higher side → seasonal + export-related working capital impact
10. 📊 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹1,238 Cr
- Ice Cream (Domestic): ~₹800–850 Cr
- Processed Food (Export): ₹388 Cr+
- Net Profit: ₹150 Cr
- OPM: 19%, NPM: ~12%
- Margins improved through scale, logistics optimization, raw material softening
11. ⚔️ Peer Comparison – Who Else in the Game?
| Company | Market Cap | P/E | ROCE % | OPM % | Growth Trend |
|---|---|---|---|---|---|
| Hatsun Agro | ₹21,300 Cr | 74.6x | 13.3% | 11.7% | Slowing |
| Dodla Dairy | ₹8,488 Cr | 33.6x | 26.5% | 10.3% | Strong |
| Heritage Foods | ₹4,566 Cr | 25.3x | 25.3% | 7.9% | Steady |
| Vadilal Inds. | ₹3,848 Cr | 25.6x | 25.4% | 19.2% | 🔥 Blazing |
🧠 Vadilal is the only pure-play ice cream+export hybrid
🏆 Best-in-class margins, asset turns, and capital efficiency
12. 🔍 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 64.72% (Stable since 2022)
- FIIs: 0.68% (Increasing slowly)
- Public: 34.58%
- Total Shareholders: 18,700+
😵💫 Corporate governance issues due to family dispute
✅ NCLAT resolution in May 2025 = governance cleanup underway
👑 Rajesh and Devanshu Gandhi both continue as MDs – for now…
13. 🧑⚖️ EduInvesting Verdict™
“The only thing colder than Vadilal’s ice cream is its promoter war.”
✅ Fundamentally strong
✅ Clean balance sheet
✅ Huge export kicker
🟠 Promoter feud = reputational overhang
🟢 Margins, ROE, and growth = mouth-watering
EduInvesting Fair Value Range (based on 20–25x FY26E EPS of ₹250):
🎯 ₹5,000 – ₹6,250
No buy/sell advice. We’re just here to swirl the facts, not scoop stocks.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Vadilal Industries, FMCG stocks, Ice cream companies India, Frozen food exports, Smallcap FMCG, Family feud stocks, ROE multibagger, Dairy sector India
