1. At a Glance
Vishnu Chemicals, the chrome chemical crusader from Hyderabad, clocked ₹1,598 Cr revenue in FY25 with 19% OPM — but the stock’s rerating game has cooled off. Margins are under pressure, ROCE has dipped, and capex is eating cash flow faster than customers are eating sodium dichromate.
Still, the moat isn’t evaporated — just needs a polish.
2. Introduction with Hook
Imagine a company that turns Chromium into cash… or tries to.
Vishnu Chemicals is like Walter White with a balance sheet: refining dangerous raw materials into high-margin exports — except now the profits are under pressure and the working capital cycle is getting longer than a Dussehra special episode.
- FY25 Revenue: ₹1,598 Cr
- FY25 Net Profit: ₹144 Cr
- YoY Net Profit Fall: 22%
- Market Cap: ₹1,598 Cr (same as revenue — a red flag or value zone?)
Chrome’s still shiny — but is the glow fading?
3. Business Model (WTF Do They Even Do?)
Core Products:
- Chromium Chemicals (Sodium Dichromate, Chromic Acid)
- Barium & Cobalt Derivatives
- Specialty Chemicals for pharma, pigments, leather, alloys
Revenue Split:
- ~65% exports to Europe, South America
- Rest: Indian pharma + manufacturing industries
Edge:
- Among only a few global chrome derivative manufacturers
- Deep integration + captive power
- Still, a commodity cycle beast — not immune to volatility
4. Financials Overview
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue (₹ Cr) | 1,674 | 1,598 |
| EBITDA (₹ Cr) | 354 | 300 |
| OPM % | 21.2% | 18.8% |
| Net Profit (₹ Cr) | 185 | 144 |
| EPS (₹) | 75.6 | 58.9 |
| Dividend (₹) | 4 | 5 |
Decline Mode Activated:
Revenue down 5%, profit down 22%, margins squeezed — possibly due to raw material inflation and delayed orders.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹1,278 |
| EPS (TTM) | ₹58.9 |
| P/E Ratio | 21.7x |
| Book Value | ₹401 |
| P/B | 3.19x |
| EV/EBITDA | 11x |
EduFair™ FV Range:
| Method | Value (₹) |
|---|---|
| Historical P/E (15–20x) | ₹885 – ₹1,178 |
| EV/EBITDA (8–10x) | ₹920 – ₹1,150 |
| DCF (mod growth) | ₹1,050 – ₹1,200 |
Fair Value Range: ₹900 – ₹1,200
CMP at ₹1,278 = a tad pricey unless earnings bounce back in FY26.
6. What’s Cooking – News, Triggers, Drama
- Q4 FY25 EBITDA fell to ₹56 Cr from ₹88 Cr QoQ
- Capex ongoing at Vizag plant → ₹200 Cr planned
- Barium expansion in execution
- Debt trimming in FY24–25 (improved interest coverage)
- China dumping investigations could support pricing
Trigger Zone:
- Export recovery
- Margin rebound from RM normalization
- Scale-up of specialty segment (still <10% mix)
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹2.45 Cr | ₹2.45 Cr |
| Reserves | ₹849 Cr | ₹990 Cr |
| Total Debt | ₹352 Cr | ₹310 Cr |
| Fixed Assets | ₹803 Cr | ₹1,033 Cr |
| Cash & Inv. | ₹82 Cr | ₹34 Cr |
Commentary:
- Net worth growing
- Debt reducing → interest coverage >6x
- Heavy capex visible in FA jump → bet on future margins
8. Cash Flow – Sab Number Game Hai
| Flow Type | FY24 | FY25 |
|---|---|---|
| Operating CF | ₹189 Cr | ₹98 Cr |
| Investing CF | ₹-183 Cr | ₹-258 Cr |
| Financing CF | ₹-41 Cr | ₹-37 Cr |
| Net Cash Flow | ₹-36 Cr | ₹-197 Cr |
Notes:
- Capex guzzling cash
- FCF negative
- Needs margins to expand again for this to work
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE (%) | 16.3% | 11.2% |
| ROE (%) | 20.3% | 14.4% |
| OPM (%) | 21.2% | 18.8% |
| D/E Ratio | 0.41x | 0.31x |
| Interest Coverage | 5.3x | 6.1x |
| WC Days | 145 | 182 |
Concerns:
- WC stretch → slow collections or excess inventory
- Return ratios down due to margin erosion
- Healthy debt metrics — silver lining
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 385 | 88 | 44 |
| Q2 FY25 | 398 | 85 | 42 |
| Q3 FY25 | 414 | 71 | 37 |
| Q4 FY25 | 401 | 56 | 21 |
Downtrend alert:
Margins falling QoQ. Company needs a demand or pricing revival to lift FY26.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE | OPM % | Rev (Cr) |
|---|---|---|---|---|---|
| Tata Chem | 1,131 | 17x | 7% | 18% | 14,600 |
| Deepak Nitrite | 2,280 | 25x | 20% | 22% | 7,000 |
| Alkyl Amines | 2,250 | 48x | 12% | 22% | 1,585 |
| Vishnu Chemicals | 1,278 | 21x | 11% | 19% | 1,598 |
Positioning:
Niche chrome player, lower topline, but stable export focus. Valuation not cheap — riding specialty hope.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2025 |
|---|---|
| Promoters | 74.80% |
| FIIs | 3.06% |
| DIIs | 0.02% |
| Public | 22.12% |
Extras:
- No promoter pledge
- Small mutual fund exposure — mostly HNI/retail play
- Dividend yield ~0.4% (not income story)
13. EduInvesting Verdict™
Vishnu Chemicals is a moat-ish, margin-ish, mid-cap in a high-regulation game. They’ve built scale, exports, and cash — but FY25 tested their resilience.
Why it deserves a look:
- One of few global players in chrome chemistry
- Strong past RoCE (pre-FY25)
- Debt-light, promoter integrity intact
Why it’s not an all-clear:
- Margins under pressure
- Capex-heavy → high execution risk
- Valuation not screaming cheap anymore
Conclusion: Niche chemical play in a consolidation phase. If they bounce back in H2 FY26, CMP could look cheap in hindsight. Until then — it’s “chrome, but verify.”
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Vishnu Chemicals, Chrome Industry, Specialty Chemicals, FY25 Results, Capex, Margin Erosion
