1. At a Glance
A conglomerate that does everything—from trading polymers and papers to growing crops and generating wind power—but still can’t generate enough shareholder confidence. Veritas India is the kind of mystery stock that financial thrillers are made of.
2. Introduction with Hook
Imagine a Swiss Army knife with one rusty blade. That’s Veritas (India) Ltd—a company with so many verticals, even the CEO needs Google Maps to track them. With ₹4,099 Cr in FY25 revenue, ₹114 Cr PAT, and a Book Value of ₹994, the stock is trading at just 0.38x BV. If you’re into discounts and dysfunction—this is your kind of party.
Key Stat 1: Trades at just 0.38x Book Value
Key Stat 2: Revenue grew ~85% in 2 years, but profit margins? Still a rounding error.
3. Business Model (WTF Do They Even Do?)
Veritas India is a classic “everything bagel” company:
- Trading & Distribution: Polymers, rubber, chemicals, paper, distillates.
- Warehousing & Manufacturing: With facilities across India and even UAE.
- Software Development: Because why not?
- Wind Energy: 7.5 MW of turbines generating power and losses.
- Agriculture: Literally sowing seeds of diversification.
Basically, a khichdi of businesses with none achieving scale independently.
4. Financials Overview
P&L (FY25):
- Revenue: ₹4,099 Cr
- Operating Profit: ₹189 Cr
- OPM: 5%
- Net Profit: ₹114 Cr
- EPS: ₹42.36
- ROE: 4.39%
- ROCE: 5.49%
Key Observations:
- Net margins under 3% despite 4,000 Cr topline.
- ROE & ROCE suggest capital is just chilling.
5. Valuation
- Current Price: ₹381
- Book Value: ₹994
- P/B Ratio: 0.38x
- P/E Ratio: 9x
Fair Value Range (Based on SOTP & P/E):
- Conservative P/E of 8–12x on FY25 PAT of ₹114 Cr = ₹912–1,368 Cr Market Cap → ₹340–510/share
- Book Value Based Valuation at 0.6x–0.8x = ₹596–₹795/share
EduFair™ FV Range: ₹340 – ₹795
Stock looks cheap—but so do most things in clearance bins.
6. What’s Cooking – News, Triggers, Drama
- May 2025: CFO Rajaram Shanbhag resigns. Reason: “Health & new opportunities.” Translation: Either got poached or spooked.
- June 2025: Major fire at UAE subsidiary. Insured, but operational impact TBD.
- Promoter Holding: Reduced by 8.35% in last 3 years. That’s not a vote of confidence.
- Debtor Days: Improved from 184 to 114—finally chasing payments.
Potential catalysts: demerger of verticals, warehouse monetization, or someone figuring out what this business actually is.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity + Reserves | ₹2,304 Cr | ₹2,510 Cr | ₹2,666 Cr |
| Borrowings | ₹232 Cr | ₹327 Cr | ₹130 Cr |
| Other Liabilities | ₹1,586 Cr | ₹1,346 Cr | ₹1,041 Cr |
| Total Assets | ₹4,121 Cr | ₹4,183 Cr | ₹3,836 Cr |
Key Points:
- Huge reduction in debt.
- Still large chunk of “Other Liabilities” — potential trade payables overload.
- Equity has consistently grown. But growth ≠ returns.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Component | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | ₹81 Cr | ₹56 Cr | ₹29 Cr |
| Investing Cash Flow | ₹-3 Cr | ₹-32 Cr | ₹19 Cr |
| Financing Cash Flow | ₹-76 Cr | ₹-13 Cr | ₹-27 Cr |
| Net Cash Flow | ₹1 Cr | ₹11 Cr | ₹21 Cr |
Key Points:
- Positive but declining operating cash flow.
- Financing flow negative = debt repayment ongoing.
- Investing cautiously—maybe too cautiously.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 4.13% | 7.46% | 4.39% |
| ROCE | 5.09% | 7.93% | 5.49% |
| Debtor Days | 278 | 160 | 114 |
| Inventory Days | 8 | 4 | 4 |
| CCC (Cash Conversion) | 130 | 150 | 53 |
| Debt/Equity | 0.10x | 0.13x | 0.05x |
Key Points:
- CCC drastically improved to 53 days—huge win.
- ROE/ROCE still meh.
- D/E nearly zero = healthy-ish.
10. P&L Breakdown – Show Me the Money
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹2,163 Cr | ₹3,855 Cr | ₹4,099 Cr |
| Operating Profit | ₹142 Cr | ₹205 Cr | ₹189 Cr |
| Net Profit | ₹95 Cr | ₹187 Cr | ₹114 Cr |
| EPS | ₹35.36 | ₹69.69 | ₹42.36 |
| OPM % | 7% | 5% | 5% |
Key Points:
- FY24 was a peak EPS year. FY25 saw a ~39% PAT drop.
- Margins are so thin they need protein shakes.
11. Peer Comparison
| Company | CMP | P/E | ROE | OPM | Market Cap |
|---|---|---|---|---|---|
| Veritas India | ₹381 | 9x | 4.39% | 5% | ₹1,022 Cr |
| Redington | ₹308 | 20.6x | 14.4% | 2.2% | ₹24,105 Cr |
| MSTC Ltd | ₹536 | 19.2x | 24.2% | 57% | ₹3,770 Cr |
| TCC Concept | ₹531 | 45x | 9.28% | 72% | ₹1,895 Cr |
Key Takeaway:
- Veritas looks undervalued, but also under-delivering.
- Competitors have clearer focus and better return metrics.
12. Miscellaneous – Shareholding, Promoters
| Shareholding | Jun 2022 | Mar 2025 |
|---|---|---|
| Promoters | 63.36% | 55.01% |
| FIIs | 9.70% | 9.70% |
| DIIs | 0.00% | 0.14% |
| Public | 26.94% | 35.15% |
| Shareholders | 3,122 | 6,420 |
Noteworthy:
- Promoter selling steadily.
- Public shareholding doubled—clearly someone believes (or just YOLO’d in).
- No dividend. Ever. Because apparently holding is its own reward.
13. EduInvesting Verdict™
Veritas India is like a buffet with 17 cuisines—none of them Michelin quality. Trading at 0.38x Book and 9x earnings, it looks like a value investor’s dream. But dig deeper, and you find capital inefficiencies, scattered focus, CFO exits, and surprise fires. Will a business split or a sharp focus change the narrative? Maybe.
Right now, it’s a classic “watchlist stock”—the kind that teaches you more about patience than profits.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Veritas India, Diversified Conglomerate, Value Stock, Promoter Sell-off, Special Situation Stock
