1.At a Glance 🍦
Vadilal Industries, born in 1907 as a soda shop, has grown into India’s second-largest ice cream brand — and also its most nostalgic one. With ₹1,280 Cr in annual revenue, ₹140 Cr in PAT, and a freezer full of juicy ROEs (24.3%), Vadilal has sweetened investor portfolios — until working capital blew up like a kulfi in the sun. Oh, and the stock’s down 33% from its peak. Coincidence? You decide.
2.Introduction
Imagine investing in a company that sells happiness in a cone — and makes ₹209 EPS doing it. Vadilal Industries isn’t just a summer darling; it’s a legacy frozen in time, battling modern brands, capital cycles, and dairy inflation.
Q1 FY26 came in strong at ₹506 Cr in sales and ₹67 Cr PAT, a neat recovery from the soft Q4. But is this a seasonal sugar rush or sustainable growth? With rising inventory days and ballooning working capital from 54 to 83 days, this ₹4,900 stock has a few brain freezes of its own.
3.Business Model – WTF Do They Even Do?
Vadilal = Ice cream + Frozen food = ₹1,280 Cr TTM revenue.
- Core Biz:
- Ice Cream, Frozen Desserts, Candy, Juicy = 90%+
- Export of frozen fruits, vegetables, ready-to-eat = Rest
- Market Position:
- 2nd largest brand in India
- No. 1 in cones, cups, and candy categories
- 16% share of India’s organized ice cream market
- Distributed in 45,000+ outlets pan-India
Think of Vadilal as Amul’s quirky cousin — less cooperative, more capitalist.
4.Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹1,280 Cr |
| EBITDA | ₹225 Cr |
| PAT | ₹140 Cr |
| EPS | ₹209.15 |
| ROE | 24.3% |
| ROCE | 25.4% |
| P/E | 25.3x |
YoY PAT growth has stalled (-8% TTM), but that comes after a 3-year
CAGR of 50%. Gross margins are stable at ~18%, but high seasonality makes Q1 & Q4 rollercoasters.
5.Valuation – Fair Value RANGE Only
Method 1: P/E Based
- EPS: ₹209
- P/E Range: 22x–28x
- FV = ₹4,600 – ₹5,850
Method 2: P/BV Based
- Book Value: ₹967
- P/B Range: 4.5x–5.5x
- FV = ₹4,350 – ₹5,320
Method 3: DCF (Estimate)
- 3-year PAT CAGR: 30%, assumed future CAGR: 18%
- Discount rate: 13%
- FV Range: ₹4,500 – ₹5,800
| Method | FV Range (₹) |
|---|---|
| P/E | 4,600–5,850 |
| P/B | 4,350–5,320 |
| DCF | 4,500–5,800 |
“This FV range is for educational purposes only and is not investment advice.”
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26:Revenue ₹506 Cr (+22% YoY), PAT ₹67 Cr
- New Plants:Capacity expansion in Gujarat + North India planned
- Exports:Frozen foods gaining traction in US, Middle East
- Auditor Musical Chairs:Walker Chandiok in, PwC as internal auditor — someone smells growth… or skeletons?
7.Balance Sheet (100 Years of Cream)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | ₹7 | ₹7 | ₹7 |
| Reserves | ₹390 | ₹535 | ₹688 |
| Borrowings | ₹291 | ₹223 | ₹218 |
| Total Assets | ₹838 | ₹917 | ₹1,096 |
