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
One Response
the main business of Veritas seems to be their subsidiary Verasco FZE which is a high margin business of chemical distillation, storage terminal in Sharjah…which generates a ebitda of 100 crore and has a value of 200 million dollars according to Crisil …the huge turnover comes from its trading business of chemicals…
the company has been taken over by swan energy in 2023 which explains the drop in promoter holding…
did you see the land worth 850 crores in 2013 which is housed under Veritas agro. tried digging deeper buy cant find its location !!!
one important thing is in the shareholding pattern , just 6-7% are the general public and others shares are held by promoters and other HNI’s who seems to be connected to the promoters…Just think the low free float can make the share go to the stars if there is a upward momentum…and hopefully since they own 93% they wont be incentive to anything to harm the general shareholders…