1. 🧠 At a Glance
Vintage Coffee isn’t just brewing coffee — it’s brewing a story hotter than its actual espresso machines. From ₹66 to ₹142 in 12 months (a 2x rally), this chicory-slinging, private-label coffee exporter has suddenly become the “cappuccino king” of the BSE Smallcap jungle. But with promoter pledging, high valuation, and wild working capital cycles — is it really Arabica quality, or just Instant Nescam?
2. 💥 Hook – The Latte That Could
Imagine this:
- A smallcap coffee player with ₹309 Cr in FY25 sales
- Pulls off 3x profit growth in 2 years
- Launches a café in Navi Mumbai for vibes
- Announces fundraises every quarter like it’s a startup
- Trades at 45x earnings, 5.88x book, and has 27% promoter pledge
This is not Tata Starbucks.
This is Vintage Coffee & Beverages Ltd — where the coffee is instant, and the equity dilution even faster.
3. 🏭 WTF Do They Even Do?
- Core biz: Manufacture & export of Instant Coffee and Chicory
- Products: Spray-dried coffee, freeze-dried coffee, instant chicory blends
- Brand play: NeoCafé and Vintage (B2C presence but small)
- Major clients: Private label orders for export markets (Southeast Asia etc.)
- Also runs a new café format for “premium positioning” (translation: trying to look cool on Instagram)
🧠 Subsidiaries:
- Vintage Coffee Pvt Ltd
- Delecto Foods Pvt Ltd
Essentially, it’s an export-led instant coffee processor, trying to slap some D2C lipstick on its commodity business.
4. 💰 Financials Overview – Profit, Margins, ROE, Growth
Let’s break down the beans:
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales (₹ Cr) | ₹37 | ₹63 | ₹131 | ₹309 |
| Net Profit (₹ Cr) | ₹-12 | ₹4 | ₹12 | ₹40 |
| OPM | -12% | 24% | 19% | 17% |
| ROE | NA | 1.1% | 11.4% | 17.1% |
| EPS | ₹-1.17 | ₹0.37 | ₹1.14 | ₹3.19 |
☕ Revenue CAGR (3Y): 104%
💸 PAT CAGR (3Y): 73%
From nothing to something — impressive. But margins are moderating, and expenses are catching up with revenue.
5. 📉 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹142 |
| EPS (TTM) | ₹3.19 |
| P/E | 44.95x |
| Book Value | ₹24.1 |
| P/B | 5.88x |
This is not Nestlé.
This is not Starbucks.
This is… a ₹309 Cr sales company trading at ₹1,800 Cr market cap.
🎯 Fair Value Range (based on 25–30x P/E on FY26E EPS):
| Scenario | FY26E EPS | P/E | FV |
|---|---|---|---|
| Base | ₹4.5 | 25x | ₹112 |
| Bull | ₹5.5 | 30x | ₹165 |
| Crack | ₹6.5 | 35x | ₹227 |
FV Range: ₹112 – ₹165
₹227 is only justified if the café lounge in Navi Mumbai becomes the next Starbucks. Which it won’t.
6. ☕ What’s Cooking – News, Triggers, Drama
Let’s stir the pot:
- 🔥 QIP / Fundraising Madness:
₹215.76 Cr preferential issue approved (July 2025 EGM pending) - 🏭 Capacity Expansion:
Commercial production of 2,000 MTPA instant coffee started Jan 2025 - 🌏 Liquid Coffee for Southeast Asia launched
- ☕ Café Lounge launched in Navi Mumbai (lol)
- 🧬 Merger with Delecto Foods complete
🧠 TL;DR: They’re aggressively growing, but burning through capital like sugar in chai.
7. 📉 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Equity Capital | ₹70 Cr | ₹70 Cr | ₹105 Cr | ₹126 Cr |
| Reserves | ₹35 Cr | ₹39 Cr | ₹62 Cr | ₹177 Cr |
| Borrowings | ₹110 Cr | ₹102 Cr | ₹97 Cr | ₹82 Cr |
| Assets | ₹246 Cr | ₹246 Cr | ₹288 Cr | ₹409 Cr |
💣 Borrowings down — but equity capital rising rapidly = dilution central.
👀 If fundraise succeeds, more equity is coming. Minority shareholders: grab your umbrellas.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY22 | ₹-27 Cr | ₹-157 Cr | ₹186 Cr | ₹2 Cr |
| FY23 | ₹11 Cr | ₹-1 Cr | ₹-11 Cr | ₹-1 Cr |
| FY24 | ₹-36 Cr | ₹-4 Cr | ₹43 Cr | ₹3 Cr |
| FY25 | ₹-26 Cr | ₹-48 Cr | ₹76 Cr | ₹2 Cr |
📉 4-year CFO: Negative in 3 out of 4 years
📦 This ain’t cash-rich coffee — it’s all balance sheet leverage and equity issuance.
9. 📐 Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 5% | 9% | 15.5% |
| ROE | 1.1% | 11.4% | 17.1% |
| Cash Conversion Cycle | 608 days | 370 days | 206 days |
| Inventory Days | 676 | 318 | 125 |
| Debtor Days | 70 | 60 | 93 |
🚨 CCC still 200+ days — better than before, but still concerning.
🧠 Promoter pledge? Still 27.4%. Stress signs, anyone?
10. 💸 P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹309 Cr |
| EBITDA | ₹53 Cr |
| EBITDA Margin | 17% |
| Net Profit | ₹40 Cr |
| EPS | ₹3.19 |
Quarterly Trend (Mar 2025):
- Sales: ₹105 Cr
- Net Profit: ₹16 Cr
- OPM: 18%
- EPS: ₹1.24
💡 Q4 run-rate suggests FY26 revenue could cross ₹400 Cr if trend continues. But costs are rising too.
11. 🥊 Peer Comparison – Who Else in the Caffeine Biz?
| Company | Sales (Cr) | PAT (Cr) | ROE | P/E | P/B |
|---|---|---|---|---|---|
| Tata Coffee | ₹2,800+ | ₹240 | 15% | 25x | 3.5x |
| CCL Products | ₹2,300+ | ₹300 | 18% | 30x | 4.2x |
| Vintage Coffee | ₹309 | ₹40 | 17.1% | 45x | 5.88x |
📌 Vintage trades at a premium to giants like CCL and Tata Coffee, despite being 1/10th their size.
Who’s brewing this logic?
12. 👨💼 Misc – Shareholding, Promoters, KMPs
| Category | Mar 2023 | Mar 2025 |
|---|---|---|
| Promoters | 69.91% | 37.84% |
| FIIs | 0% | 3.19% |
| DIIs | 0% | 1.92% |
| Public | 30.1% | 57.05% |
🧾 Promoter holding halved in 2 years.
🎭 New investors = New pressure = New storytelling.
Directors constantly reshuffling. Looks more like a startup than a listed FMCG firm.
13. ⚖️ EduInvesting Verdict™
“Instant coffee, instant hype, and maybe even instant regret — if you’re late to the brew party.”
🟢 What’s Hot:
- 3-year revenue growth is 💯
- Profits tripled
- New capacity + export orders
- Margins stable at 17–18%
🔴 What’s Not:
- Valuation is spicy AF
- Promoter pledging & dilution = 🚨
- Negative cash flows
- CCC still high
🎯 Fair Value Range: ₹112 – ₹165
CMP ₹142 is fair-to-frothy depending on FY26 execution.
☕ Brew carefully. Don’t get burnt by the caffeine crash.
✍️ Written by Prashant | 📅 5 July 2025
Tags: Vintage Coffee, Instant Coffee Stocks, NeoCafe, FMCG Smallcap, Export Stocks, Promoter Pledge, EduInvesting, Coffee IPO, Chicory, Navi Mumbai Cafes
