🪞 At a Glance
Vimta Labs is a Hyderabad-based contract research and testing company doing everything from drug molecule testing to making sure your biscuits don’t have lead in them. Despite its low-key image, it’s silently built a strong 25% ROCE business, riding on India’s rising bio-Pharma and food compliance demand. The recent entry into CDMO and biologics R&D adds new optionality.
🔬 1. WTF Does Vimta Even Do?
Let’s just say — if it can be tested, Vimta will test it.
- Contract Testing: Biologics, small molecules, agrochemicals, clinical diagnostics, medical devices, personal care, environment.
- Clients: Pharma giants, FMCG players, export-oriented food companies, etc.
- New Scope: CDMO + Biologics R&D (as per MOA amendment in June 2025).
- Business Model: B2B, project-based + long-term recurring contracts.
If Dr. House was in India, he’d probably outsource diagnostics to Vimta.
💰 2. Financials: Not Flashy, But Freakishly Consistent
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 181 | 209 | 276 | 315 | 289 | 344 |
| EBITDA (₹ Cr) | 30 | 53 | 80 | 94 | 94 | 122 |
| EBITDA Margin (%) | 17% | 25% | 29% | 30% | 33% | 35% |
| PAT (₹ Cr) | 7 | 21 | 41 | 47 | 41 | 67 |
| ROE (%) | 1.6% | 4.8% | 9.3% | 10.7% | 9.3% | 15.1% |
| ROCE (%) | 6% | 14% | 24% | 24% | 20% | 25% |
| EPS (₹) | 1.57 | 4.81 | 9.29 | 10.68 | 9.26 | 15.13 |
📈 5-Year PAT CAGR: 58%
📈 5-Year Sales CAGR: 14%
💥 1-Year Price Return: 82%
🧂 Not many 1000-crore companies can flex 25% ROCE and 66% TTM profit growth.
🪙 3. Valuation: Not Dirt Cheap, But Maybe Rightfully So?
- Current Price: ₹438
- Market Cap: ₹1,945 Cr
- P/E (TTM): 28.9x
- Price/BV: 5.15x
- EV/EBITDA: ~15.6x (est.)
🧠 Fair Value Range Calculation (Edu-style):
Assuming:
- FY26 EPS = ₹18 (20% growth on FY25)
- Fair PE Range = 25x (conservative) to 35x (optimistic CDMO re-rating)
➡️ FV Range = ₹450 – ₹630
So yeah, it’s somewhere in the middle of “hmm, not cheap” and “hmm, maybe compounder?”
🔍 4. What’s Cooking?
🥼 MOA Change (June 2025): Expanded to include CDMO and biologics – more margin-accretive biz.
🥇 Bonus Issue (1:1 in June 2025): From 4.45 Cr shares to 8.90 Cr – market loved it.
📞 Concall Buzz:
- Strong demand in biologics & diagnostics verticals.
- Eyeing international contracts.
- Margins seen sustaining at 35%+ due to scale.
💰 Capex Watch: CWIP was ₹59 Cr in FY24, implying recent infra additions are revenue-ready now.
🧾 5. Balance Sheet: Squeaky Clean
- Total Debt (FY25): ₹9 Cr
- Net Cash: Positive
- Reserves: ₹374 Cr
- Equity Capital (Post-bonus): ₹8.9 Cr
- Debt-to-Equity: Virtually zero
This company spends less on interest than most of us do on Swiggy Instamart impulsive buys.
💸 6. Cash Flow: Healthy Like a WHO-Certified Biscuit
| Year | CFO (₹ Cr) | FCF Est. (₹ Cr) |
|---|---|---|
| FY22 | 59 | ~30 |
| FY23 | 87 | ~60 |
| FY24 | 61 | ~40 |
| FY25 | 95 | ~70 |
Cumulative CFO in 4 years = ₹302 Cr 🤯
Capex is well-funded without debt – always a good look.
🧮 7. Ratios – How Sexy?
| Ratio | FY25 |
|---|---|
| OPM (%) | 35% |
| ROCE (%) | 25.2% |
| ROE (%) | 19.4% |
| Debtor Days | 113 |
| Inventory Days | 210 |
| CCC (Cash Cycle) | 235 days |
| Dividend Yield | 0.23% |
🧨 Red Flag?: Inventory Days ballooned – keep an eye.
🧾 8. P&L Deep Dive (FY25)
- Sales: ₹344 Cr
- EBITDA: ₹122 Cr
- EBITDA Margin: 35.5%
- PAT: ₹67 Cr
- EPS: ₹15.13
Bonus-adjusted EPS = ₹7.57 – So new PE is technically ~58x 🤔
⚔️ 9. Peer Comparison
| Company | P/E | ROCE | OPM | Market Cap (Cr) |
|---|---|---|---|---|
| Vimta Labs | 28.9 | 25% | 35% | ₹1,945 |
| Syngene | 54.8 | 13% | 28% | ₹25,889 |
| Indegene | 32.8 | 24% | 19% | ₹13,644 |
| Jeevan Sci | 1247 | 2% | 15% | ₹62 |
🏆 Vimta is small cap but punches above its weight on margins + capital efficiency.
👥 10. Shareholding & Promoter Moves
- Promoter Holding: 36.67% (down from 37.5% in 2022)
- FII Holding: 3.5% (up from 0.5% in 2022)
- Public Holding: 58.4%
- No. of Shareholders: Surged to 29,867 👀
🧠 Smart money entering. Retail piling in.
🧠 EduInvesting Verdict™
“Vimta Labs is the Indian Sherlock Holmes of diagnostics — but now with a CDMO cape. You’re not paying for what it is, you’re paying for what it could become.”
🧪 25% ROCE, nearly debt-free, strong margins, CDMO optionality, and ₹95 Cr cash flow in FY25?
🧻 But watch bonus-adjusted PE and bloated working capital cycle.
🎯 Fair Value Range: ₹450 – ₹630
(as per FY26 EPS ₹18 and PE band of 25x–35x)
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Vimta Labs, CDMO, diagnostics, smallcap, ROCE, research stocks, pharma testing, bonus shares, contract research,
