New Risk • Jun 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.8% Last year net profit margin: 3.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Earnings have declined by 40% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.8% net profit margin). Market cap is less than US$100m (₹1.28b market cap, or US$13.5m). New Risk • Jun 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 41% per year over the past 5 years. High level of non-cash earnings (41% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported September 2025 fiscal period end). Market cap is less than US$100m (₹1.24b market cap, or US$13.1m). Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹40.95, the stock trades at a trailing P/E ratio of 31.7x. Average trailing P/E is 20x in the Chemicals industry in India. Total loss to shareholders of 53% over the past three years. New Risk • Mar 16
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₹900.6m (US$9.76m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 41% per year over the past 5 years. High level of non-cash earnings (41% accrual ratio). Market cap is less than US$10m (₹900.6m market cap, or US$9.76m). Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹39.90, the stock trades at a trailing P/E ratio of 30.9x. Average trailing P/E is 22x in the Chemicals industry in India. Total loss to shareholders of 53% over the past three years. Announcement • Nov 14
Vital Chemtech Limited to Report First Half, 2026 Results on Nov 14, 2025 Vital Chemtech Limited announced that they will report first half, 2026 results on Nov 14, 2025 New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings have declined by 24% per year over the past 5 years. High level of non-cash earnings (35% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Market cap is less than US$100m (₹1.49b market cap, or US$16.8m). Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹64.30, the stock trades at a trailing P/E ratio of 38x. Average trailing P/E is 26x in the Chemicals industry in India. Total loss to shareholders of 13% over the past year. Reported Earnings • Sep 10
Full year 2025 earnings released: EPS: ₹1.93 (vs ₹27.63 loss in FY 2024) Full year 2025 results: EPS: ₹1.93 (up from ₹27.63 loss in FY 2024). Revenue: ₹1.34b (up 36% from FY 2024). Net income: ₹40.6m (up ₹53.6m from FY 2024). Profit margin: 3.0% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Announcement • Sep 01
Vital Chemtech Limited, Annual General Meeting, Sep 27, 2025 Vital Chemtech Limited, Annual General Meeting, Sep 27, 2025, at 14:00 Indian Standard Time. New Risk • Jun 05
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (10% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 24% per year over the past 5 years. High level of non-cash earnings (35% accrual ratio). Minor Risk Market cap is less than US$100m (₹1.56b market cap, or US$18.2m). New Risk • Jun 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 23% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Market cap is less than US$100m (₹1.65b market cap, or US$19.4m). New Risk • Apr 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 9.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 23% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.3% average weekly change). Market cap is less than US$100m (₹1.76b market cap, or US$20.6m). Announcement • Sep 13
Vital Chemtech Limited, Annual General Meeting, Sep 30, 2024 Vital Chemtech Limited, Annual General Meeting, Sep 30, 2024, at 12:00 Indian Standard Time. Declared Dividend • Sep 05
Dividend of ₹0.50 announced Dividend of ₹0.50 is the same as last year. Ex-date: 13th September 2024 Payment date: 30th October 2024 Dividend yield will be 0.6%, which is lower than the industry average of 0.8%. Sustainability & Growth Dividend is covered by earnings (16% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. Earnings per share has grown by 8.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Jul 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 10.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10.0% average weekly change). Earnings have declined by 4.1% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₹2.32b market cap, or US$27.8m). New Risk • Jun 14
New major risk - Revenue and earnings growth Earnings have declined by 4.1% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.1% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.4% average weekly change). Market cap is less than US$100m (₹1.78b market cap, or US$21.4m). Announcement • May 31
Vital Chemtech Limited Recommends Final Dividend for the Financial Year Ended on March 31, 2024 Vital Chemtech Limited Recommended a Final Dividend of INR 0.50/- (Fifty Paisa Only) per equity share, face value INR 10/- per equity share (i.e. 5 % of face value) for the financial year ended on March 31, 2024, subject To Approve the members at the ensuing Annual General Meeting. Final Dividend, if approved by the members, will be paid/dispatched after the Annual General Meeting. New Risk • May 26
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.5% average weekly change). Profit margins are more than 30% lower than last year (3.6% net profit margin). Market cap is less than US$100m (₹2.01b market cap, or US$24.2m). Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹91.35, the stock trades at a trailing P/E ratio of 57.2x. Average trailing P/E is 31x in the Chemicals industry in India. Total loss to shareholders of 2.3% over the past year. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹82.35, the stock trades at a trailing P/E ratio of 51.6x. Average trailing P/E is 30x in the Chemicals industry in India. Total loss to shareholders of 13% over the past year. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹99.85, the stock trades at a trailing P/E ratio of 62.6x. Average trailing P/E is 29x in the Chemicals industry in India. Total loss to shareholders of 22% over the past year. Reported Earnings • May 24
Full year 2023 earnings released: EPS: ₹4.50 (vs ₹12.99 in FY 2022) Full year 2023 results: EPS: ₹4.50 (down from ₹12.99 in FY 2022). Revenue: ₹1.17b (down 18% from FY 2022). Net income: ₹80.5m (down 45% from FY 2022). Profit margin: 6.9% (down from 10% in FY 2022). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹111, the stock trades at a trailing P/E ratio of 16.9x. Average trailing P/E is 20x in the Chemicals industry in India. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₹94.45, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 19x in the Chemicals industry in India. Recent Insider Transactions • Apr 02
Chairman & MD recently bought ₹2.8m worth of stock On the 31st of March, Vipul Bhatt bought around 36k shares on-market at roughly ₹76.85 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Vipul's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₹78.60, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 19x in the Chemicals industry in India. Announcement • Nov 24
Vital Chemtech Limited Announces Board Changes Vital Chemtech Limited at its board meeting held on November 22, 2022 approved the resignation of Ms. puja paras Mehta,Company Secretary & Compliance Officer, at the Close of business hours of November 21, 2022. The company also approved the appointment of Mr. Utsav Sudhir Trivedi. DOB:- 086 June, 1994. Date of appointment: November 22, 2022. Term of Appointment: Appointed as Company Secretary & Compliance officer of the company. Education Qualification: Company Secretary (C.S.).LLB & B.Com. He is an Associate Member of institute of Company Secretaries of India having experience of Months and Pre-qualification experience of 2 years and is well versed with knowledge of Corporate Law, Corporate Governance & SEBI laws and regulations. Reported Earnings • Nov 20
First half 2023 earnings released First half 2023 results: EPS: ₹3.48. Net income: ₹60.8m (up ₹60.8m from 1H 2022). Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. 2 independent directors (3 non-independent directors). Whole Time Director Sangeeta Bhatt is the most experienced director on the board, commencing their role in 2022. Independent Director Deepakkumar Chaubisa was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors.