1. At a Glance
Vadilal Enterprises Ltd (VEL), the marketing arm of the iconic Vadilal brand, isn’t just selling ice creams—it’s selling shareholder whiplash. From boardroom drama to wild EPS swings and a ₹10,000+ stock price, this isn’t your average dairy story.
2. Introduction with Hook
Imagine if Amul, Game of Thrones, and Bitcoin had a baby. You’d get Vadilal Enterprises Ltd—a company where dairy meets dynasty, and frozen desserts fuel 180% stock returns.
- Stock Price 1Y CAGR: 180%
- EPS TTM: ₹66.42, down from peak ₹87+
- P/E: A nosebleed-inducing 155x
It distributes the products of Vadilal Industries (VIL), but the real flavor comes from its intense family fights, legal petitions, and a stock that trades at 40x book value.
3. Business Model (WTF Do They Even Do?)
VEL is the middleman—but make it fancy.
- Core Function: Exclusive marketer & distributor of Vadilal brand ice cream, processed foods, frozen desserts
- Owns: Deep freezers, cold-chain logistics, freezers-on-wheels
- Relies on: Vadilal Industries (VIL) for supply
- Decides: Pricing, SKU geographies, promotions
- Gets: Generous credit lines from VIL (how sweet)
It doesn’t manufacture a single cone. Yet, it’s doing ₹1,100 Cr+ in revenue and demanding premium valuations.
4. Financials Overview
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROE (%) | OPM (%) |
|---|---|---|---|---|---|
| FY21 | 340 | 1 | 9.85 | 27% | 5% |
| FY22 | 548 | 2 | 25.50 | 33% | 2% |
| FY23 | 930 | 6 | 71.40 | 60% | 1% |
| FY24 | 999 | 8 | 87.05 | 39% | 1% |
| FY25 | 1,119 | 6 | 66.42 | 28% | 2% |
Tastes like: Asset-light growth with profit margins thinner than a kulfi stick.
5. Valuation
Current Price: ₹10,301
Book Value: ₹258
P/E TTM: 155
ROE: 28%
EduInvesting FV Range: ₹6,400 – ₹8,800
Why the wide range?
Because earnings are all over the place, the business model is dependent on VIL, and family drama is more regular than quarterly results.
6. What’s Cooking – News, Triggers, Drama
- April 2024: Fitch upgraded credit rating
- May 2024: NCLAT dismissed appeals; Board reconstituted
- March 2024: Gandhi family truce and management restructure
- Legacy Battle: Gandhi family internal power struggle for years
- VIL–VEL Dynamics: The parent-sibling dependency continues
Potential Catalysts:
- Resolution of family disputes permanently
- Clearer revenue share or merger with Vadilal Industries
- New distribution expansions in Tier 2–3 towns
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 0.86 |
| Reserves | 21 |
| Borrowings | 47 |
| Other Liabilities | 211 |
| Total Assets | 281 |
| Fixed Assets + CWIP | 115 |
| Cash & Other Assets | 165 |
Key Points:
- Tiny equity base = exaggerated EPS
- Low capex but rising borrowings
- ROCE down to 24% from 60% in FY23
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹7 Cr | ₹–3 Cr | ₹–2 Cr | ₹2 Cr |
| FY24 | ₹17 Cr | ₹–35 Cr | ₹17 Cr | ₹–1 Cr |
| FY25 | ₹32 Cr | ₹–39 Cr | ₹13 Cr | ₹5 Cr |
Takeaway:
Operating cash flow has finally grown, but investments in capex and debt servicing still eat the kulfi before it cools.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 28% |
| ROCE | 24% |
| OPM | 2% |
| P/E | 155 |
| D/E | 2.0x |
| Interest Coverage | <2x |
Verdict:
Operational sexiness with valuation stress. ROE > 25%, but the OPM is malnourished. Valuation? Cold and overpriced.
10. P&L Breakdown – Show Me the Money
| Item | FY25 (₹ Cr) |
|---|---|
| Sales | 1,119 |
| Expenses | 1,095 |
| EBITDA | 24 |
| Depreciation | 16 |
| Interest | 6 |
| PBT | 8 |
| PAT | 6 |
| EPS | 66.42 |
This is basically a financial tightrope act on an ice rink.
11. Peer Comparison
| Company | P/E | ROE (%) | OPM (%) | EPS | Price |
|---|---|---|---|---|---|
| Dodla Dairy | 34 | 20% | 10.3% | ₹73 | ₹1,420 |
| Parag Milk | 23 | 12% | 7.4% | ₹10 | ₹233 |
| Vadilal Inds. | 25 | 24% | 19.2% | ₹120 | ₹5,237 |
| VADILAL ENTP. | 155 | 28% | 2% | ₹66 | ₹10,301 |
Who’s the outlier here?
The guy selling ice cream with zero chill on the valuation.
12. Miscellaneous – Shareholding, Promoters
| Holder Type | % Holding (Mar 2025) |
|---|---|
| Promoters | 51.26% |
| FIIs | 0.54% |
| Public | 48.21% |
| No. of Shareholders | 1,373 |
Interesting Nuggets:
- No institutional ownership until very recently
- Shareholding almost 50:50 between promoters and public
- Extremely illiquid, which fuels the price jumps
13. EduInvesting Verdict™
This isn’t an ice cream stock. It’s a Netflix series with seasonal suspense. One quarter it’s printing ₹80 EPS, the next it’s ₹–100. That P/E? Built on expectations, not earnings. That ROE? Baked into low equity, not high margin.
So What Should Smart Investors Do?
Track the family soap opera, monitor cash flows, and be wary of valuations that assume every scoop is made of gold. The ice cream is premium, the numbers are frosty, but the stock—well, it’s on thin ice.
Metadata
– Written by EduInvesting Research | 14 July 2025
– Tags: Vadilal Enterprises, Ice Cream Stocks, FMCG, India Dairy Sector, Family Feuds in Business, High P/E Danger
