1. At a Glance
Hyderabad-based Vimta Labs, born in 1990, is quietly building a nerd empire. From clinical trials to food safety, from biologics to mobile labs—it’s the lab coat company that’s making ₹73 Cr PAT with 25% ROCE… and just announced a 1:1 bonus. Not bad for a “testing lab”.
2. Introduction with Hook
If pathology labs are the backroom brains of healthcare, Vimta Labs is the geek that wears a white coat and quietly tops the class.
- Q1 FY26 PAT: ₹19 Cr (+58% YoY)
- ROCE: 25%
- Debt? Almost none.
It’s not glamorous. There’s no CEO doing TED talks. But it’s minting money from tests on everything from your diabetes meds to your shampoo to your kebab.
3. Business Model (WTF Do They Even Do?)
Vimta is a B2B contract research & testing lab that runs across sectors. Here’s their lab tray:
- Biologics & Small Molecule Testing – Pharma & biotech testing (the big bucks)
- Food & Beverage Testing – For all the FSSAI-mandated stuff you ignore
- Medical Devices & Diagnostics – For MNCs and Indian medtech startups
- Agrochemical & Environmental Testing – Plants and pollution
- Personal Care, Electronics, Consumer Goods – Yup, your face wash and phone too
- Clinical Trials & Diagnostics – Includes pathology labs and specialty services
The company runs pan-India labs and services 2,000+ clients. Think of it as India’s own Eurofins, but scrappy and profitable.
4. Financials Overview
FY25 (Standalone):
- Revenue: ₹344 Cr
- EBITDA: ₹122 Cr
- Net Profit: ₹67 Cr
- OPM: 35%
- EPS: ₹15.13
- ROE: 19.4%
- ROCE: 25.2%
- Book Value: ₹85
Q1 FY26 Highlights:
- Revenue: ₹99.3 Cr (+31% YoY)
- PAT: ₹19 Cr
- EBITDA Margin: 35.7%
- PAT Margin: 19%
This isn’t a growth stock story. It’s a compounding cash cow with science goggles.
5. Valuation
Current Price: ₹466
PE: 29x
PB: 5.47x
PEG (based on 3-yr profit CAGR of 17%): ~1.7 (reasonable but not mouth-watering)
EduFair Value Range: ₹410 – ₹525
- 25x–32x on FY26E EPS of ₹16.5
- Bonus-adjusted entry levels likely to reset sentiment short term
- Not cheap, but not overcooked either
6. What’s Cooking – News, Triggers, Drama
- Bonus Issue 1:1 (Jul 2025): Retail frenzy incoming
- Q1 Results Beat Street Estimates: ₹19 Cr PAT, 31% topline growth
- FIIs Rising: 5.16% to 3.52% (minor decline after peaking)
- Expansion of Lab Capacity in FY25: Infrastructure ramp-up for higher volumes
- Environmental Testing Growth: ESG boom = test more air and water
- Food Safety Contracts: Govt regs + FMCG demand = secular tailwind
Not viral like a Nykaa, but stable and quietly scaling.
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹4 Cr | ₹4 Cr | ₹4 Cr |
| Reserves | ₹276 Cr | ₹310 Cr | ₹374 Cr |
| Borrowings | ₹15 Cr | ₹19 Cr | ₹9 Cr |
| Total Liabilities | ₹360 Cr | ₹394 Cr | ₹467 Cr |
| Fixed Assets | ₹168 Cr | ₹166 Cr | ₹230 Cr |
| CWIP | ₹12 Cr | ₹59 Cr | ₹38 Cr |
| Other Assets | ₹174 Cr | ₹170 Cr | ₹198 Cr |
Observations:
- Debt down from ₹19 Cr to ₹9 Cr – near debt-free
- Capex = new infra (CWIP converting to assets)
- Reserves growing steadily. Conservative balance sheet, no funny business.
8. Cash Flow – Sab Number Game Hai
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Cash from Ops | ₹87 Cr | ₹61 Cr | ₹95 Cr |
| Cash from Investing | ₹(57) Cr | ₹(76) Cr | ₹(76) Cr |
| Cash from Financing | ₹(11) Cr | ₹(2) Cr | ₹(17) Cr |
| Net Cash Flow | ₹19 Cr | ₹(17) Cr | ₹2 Cr |
Key Points:
- OCF up, reinvested into labs & infra
- Stable cash management
- No equity dilution, no reckless spending – just science and sweat.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 24% | 20% | 25% |
| ROE % | 17% | 17% | 19.4% |
| PE | 29.2 | 29.1 | 29.2 |
| Debt/Equity | 0.05 | 0.06 | 0.02 |
Verdict:
Sexy. Especially when compared to its expensive peers like Syngene and Indegene.
10. P&L Breakdown – Show Me the Money
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹315 Cr | ₹289 Cr | ₹344 Cr |
| EBITDA | ₹94 Cr | ₹94 Cr | ₹122 Cr |
| Net Profit | ₹47 Cr | ₹41 Cr | ₹67 Cr |
| EPS | ₹10.68 | ₹9.26 | ₹15.13 |
Notes:
- Steady margin improvement despite volatile topline
- Profit almost doubled over 2 years
- Consistent performance post-COVID
11. Peer Comparison
| Company | Price | PE | MCap | ROE | OPM |
|---|---|---|---|---|---|
| Vimta Labs | ₹466 | 29.2 | ₹2,074 Cr | 19.4% | 35% |
| Syngene | ₹670 | 57.1 | ₹27,015 Cr | 10.5% | 28.6% |
| Indegene | ₹576 | 33.2 | ₹13,840 Cr | 20.6% | 19.2% |
| Bilcare | ₹70 | NA | ₹165 Cr | -5.3% | 5.6% |
| Suven Life | ₹290 | NA | ₹6,354 Cr | -84.6% | -2,489% |
Vimta = highest ROCE, cheapest on PE vs quality peers. That’s rare.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 36.67% (steadily inching down)
- FIIs: Grew from 0.5% to 5.1%, now settling at 3.5%
- DIIs: Flat at ~1.4%
- Public: 58% and loyal
- No. of Shareholders: 29,867 (up from 18K in 2022)
Also:
- 1:1 Bonus (Jul 2025)
- Dividend payout: low (7–11%) – prefers retention & growth
13. EduInvesting Verdict™
Vimta Labs is what happens when science meets capital discipline. It doesn’t scream headlines, but it delivers results. ROCE > 25%, bonus issues, and consistent cash flows – this is a silent compounder, not a story stock.
Want multibaggers? Sometimes they come wearing lab coats and talking about chromatography.
Metadata
– Written by EduInvesting Research | 17 July 2025
– Tags: Vimta Labs, Diagnostics, CRO, Testing Services, Bonus Issue, Midcap Healthcare, Lab Stocks, ROCE 25%, Multibagger Watch
