1. At a Glance
Veritas India is the corporate equivalent of a general store owner who says “haan, sab milta hai.” From polymers to paper boards, windmills to warehouses, and now drones to software, the only thing missing is a pani-puri stall. Swan Energy owns 55% and is using it as an ambitious infra + trading platform. But with 94% of FY24 revenue from trading and wafer-thin margins, the transformation story is still more PowerPoint than reality. The stock is down 57% in a year, trades at 0.38x book, and investors are stuck between “deep value” and “value trap.”
2. Introduction
Founded in 1985 as Duroflex Engineering Ltd, Veritas India reinvented itself into a multi-vertical operator spanning trading, distribution, infrastructure, manufacturing, agriculture, IT services, and even renewable energy. After Swan Energy’s takeover in FY23, the pitch became grand: port-linked industrial complexes, global trading arms, and tech-enabled diversification.
The Dighi Port mega-project is the crown jewel, promising PVC/PMB plants, LPG bottling, captive power, and logistics. Overseas, the UAE bulk liquid terminal and Singapore trading arm give them global reach.
But beneath the glossy brochure:
- The bulk of business is still commodity trading — low-margin, high-volume, volatile.
- Warehousing, power, and new tech ventures contribute little to the bottom line.
- Profitability swings wildly quarter to quarter.
The past year has been rough: revenue down 4% in FY25, profit down 57%, and Q1 FY26 delivering both YoY and QoQ falls. The market’s patience is being tested — they want to see less “diversification announcements” and more “cash flow delivery.”
3. Business Model (WTF Do They Even Do?)
Trading & Distribution (94% revenue):Bulk trading of polymers, paper & paper boards, rubber, heavy distillates, and chemicals across domestic and export markets.
Warehousing (5%):Rental from storage facilities, mostly port-linked.
Wind Power & Misc. (1%):Renewable energy generation, a rounding error in revenue terms.
Subsidiaries:
- Overseas:Veritas International FZE (UAE), Verasco FZE (UAE, bulk liquid terminal, 1.75 lakh KL capacity),
- Veritas Global PTE (Singapore), and a dormant US entity.
- Domestic:Veritas Polychem (Dighi Port industrial complex), Veritas Infra & Logistics, Veritas Agro Ventures.
New Ventures:Added advanced survey & imaging (GIS, LiDAR, drones) and IT/software services to object clause in FY24.
Strength:Global presence + infra pipeline.Weakness:Still a trading house at heart — big infra dreams yet to yield steady, high-margin income.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹587 Cr | ₹756 Cr | ₹786 Cr | -22.35% | -25.32% |
| EBITDA | ₹36 Cr | ₹64 Cr | ₹26 Cr | -43.75% | 38.46% |
| PAT | ₹24.2 Cr | ₹48.07 Cr | -₹1.1 Cr | -49.76% | — |
| EPS (₹) | 9.01 | 17.93 | -0.41 | -49.77% | — |
YoY: Sharp decline in both revenue and profits.QoQ: Bounce from loss to profit, but revenue slump shows demand weakness.
5. Valuation (Fair Value Range Only)
P/E Method:TTM EPS = ₹33.43Peer average P/E (trading/distribution) ≈ 12–18xFV Range = ₹400–₹600
EV/EBITDA Method:TTM EBITDA ≈ ₹161 CrEV/EBITDA fair range 6–8x → EV = ₹966–₹1,288 Cr → Equity FV range = ₹360–₹480 per share
DCF (10% discount, 5% growth, volatile cash flows):₹350–₹450
Overall FV Range (educational): ₹350–₹500Disclaimer: This FV range is for educational purposes only and is
