In this post we will analyze all about Vidhi Specialty Food Ingredients Ltd, company fundamentals, future view, company’s outlook, their financials, shareholding patterns etc , Based on company’s fundamentals and technical analysis, we will try to predict Vidhi Specialty share price target 2023,2024,2025 and 2030.
About Vidhi Specialty Food Ingredients Ltd
Established in 1994, Vidhi Specialty Food Ingredients Limited (Formerly known as ‘Vidhi Dyestuffs Manufacturing Limited’) [‘Vidhi’] is a leading manufacturer of Superior Synthetic and Natural Food Grade Colours; providing customers with world class color solutions in applications of Foods & Beverages, Confectionaries, Pharmaceuticals, Feeds, Cosmetics, Inkjet Inks and Salt Free Colors. Our colors are being distributed and consumed in over 80 countries across 6 continents.
Vidhi Specialty Share Price Target 2023: Technical Analysis
Vidhi Specialty Share Price Target 2023
| Year | Vidhi Specialty Share Price in 2023 |
| 2023 | ₹440 to ₹480 |
Company Overview
| Company Name | Vidhi Specialty Food Ingredients Ltd |
| Company Website | vidhifoodcolour.com |
| Chairman and Managing Director | Mr. Bipin M. Manek |
| Market Cap (Cr.) | ₹ 1,794 |
| 52 W High / Low | ₹ 514 / 331 |
| Stock P/E | 34.4 |
| Book Value | ₹ 47.4 |
| P/B (Price to Book Value) | 7.57 |
| Face Value | ₹ 1.00 |
| ROCE | 33.2 % |
| ROE | 31.0 % |
| Dividend Yield | 0.22 % |
Key Highlights:.
- Vidhi Manufacturing facilities are spread over an area of 1,76,000 square feet, located in Dhatav Village of Raigad District in the state of Maharashtra – India.
- 95.20% of all colors manufactured by VSFIL are exported globally (America, Europe, Africa, Middle East).
- Half of the sale in FY 2021-22 comes from American continent followed by 22% from Europe and 18% from Australasia.
- Vidhi was the first Company in the field of manufacturing synthetic food colours in India to be awarded with ISO 9002 in the year of 2000.
- The Company is the third largest manufacturer of synthetic food grade dyes globally and 2nd largest in Asia with a capacity of above 3,500 MTPA and it is in process of additional production capacity of ~8,500 MTPA with two Greenfield expansion
- Established strong relationships with global majors like Nestle, Britannia, Pepsi, Cipla, Parle G, Unilever, ITC and so on.
Business Overview:
Vidhi is a globally renowned player in the food color industry and a leading manufacturer of Superior Synthetic including Synthetic Water Soluble Colors, Aluminum Lakes, FD&C Colors, FD&C lakes, D&C Colors, Blends, Co-blended Lakes & Co-blended Granules.
Company has a single reportable business segment, namely, manufacturing and trading of food colours and chemicals.
The Company has manufactured 3,573.81 MT food colors during the financial year 2021-22 against 3,660.66 MT in the previous year.
The Company has fully equipped & functional laboratory accredited by the Bureau of Indian Standards forms the core of Quality Control Department with dedicated R & D facility with a team of PHD’s & qualified chemists, constantly working on process engineering of existing products and on development of new products to enhance the product portfolio and offerings.
Food Color Market
The food color market is segmented into type, application and region.
- Type – Food color market is categorized into natural color and artificial color.
- Application – Beverages, Dairy & Frozen Desserts, Bakery & confectionary, Meat products, Processed food & Vegetables, Oils & fats, sweets and snacks, cosmetic, Pharma product, etc.
- Region wise – Food color market analyzed across North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain and rest of Europe), Asia-Pacific (China, Japan, Australia, India and rest of Asia-Pacific), Latin America (Brazil, Argentina, Colombia and rest of Latin America), Middle East (Saudi Arabia, Egypt, Nigeria and rest of Middle East) and Africa (South Africa, Nigeria, and rest of Africa).
Industry Overview:
- Every year incremental demand of INR 1,500 to INR 1,700 crores is expected to generate globally for Food color.
- The global market for Natural Food Color Ingredients will be valued at USD 5481.5 million by the end of 2026, with a CAGR of 1.7 % from 2021 to 2026.
- In 2019, India’s natural food colours industry was expected to be worth USD 74.09 million. It is predicted to reach USD 92.96 million by 2027, with a CAGR of 3.90 % across the area from 2020 to 2027.
- The Indian Dye & Dyestuff industry plays a vital role in the economic development of the country. It is one of the core chemical industries and second highest export segment in the chemical industry
- India is a strong global dye supplier, accounting for approximately 16% of the world production of dyestuff and dye intermediates.
- Maharashtra and Gujarat account for 90% of dyestuff production in India due to the availability of raw materials and dominance of textile industry in these regions
- The major users of dyes in India are textiles, paper, plastics, printing ink and foodstuff industries.
- The textiles sector consumes around 80% of the total production due to high demand for polyester and cotton, globally.
Outlook:
- The global food colour market is primarily driven by the increasing demand from beverage industry and bakery and confectionary. The high demand from flavoured drinks, fruit juices and nutritional drinks drives the global food colour market.
- For commercial adoption, synthetic food colours are in high demand because of the high stability under light, cheap in cost and less microbial contamination. However, natural food colours are expensive in comparison to synthetic ones.
- Due to trade conflicts erupted around the world, especially among China, the United States and Western Europe could present opportunities for chemical Companies in India.
- Due to stricter environmental norms, tighter financing could present opportunities for India’s chemical Companies, especially in the short term.
Vidhi Specialty Share Analysis Video:
Vidhi Specialty Share Analysis Video
FINANCIAL PERFORMANCE REVIEW
- Company has achieved Revenue from operations of INR 53,705.46 lakhs.
- Company has achieved net profit after tax of INR 5,875.86 lakhs for the financial year 2021-22.
- EBIDTA stood at INR 8,603.48 lakhs for the financial year 2021-22.
- An operational EBIDTA has increased from 20.30% for financial year ended March 31, 2021 to 61% for the financial year ended March 31, 2022.
Company Financial Ratio
Pros:
- Company has delivered good profit growth of 32.0% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 28.8%
- Company have low debt, debt to equity ratio is 0.28.
Cons:
- Stock is trading at 7.57 times its book value
Vidhi Specialty Share Price Target 2024-2025
Vidhi Specialty Share Price Target 2024
| Year | Vidhi Specialty Share Price in 2024 |
| 2024 | ₹540 to ₹624 |
Vidhi Specialty Share Price Target 2025
| Year | Vidhi Specialty Share Price in 2025 |
| 2025 | ₹ 760 to ₹812 |
Vidhi Specialty SUBSIDIARY/ASSOCIATE COMPANIES:
(As on March 31, 2022)
The Company has a Wholly-owned Subsidiary, Arjun Food Colorants Manufacturing Private Limited, as on March 31, 2022. However, the Company did not have any Joint Venture or Associate Company during the year under review.
Arjun Food Colorants Manufacturing Private Limited did not have any business operation during the year 2021-22. Hence, there was no income from operation.
Vidhi Specialty Shareholding Patterns:
| Holdings | Year 2022(Sept)% |
| Promoters | 64.28 |
| FIIS | 0.20 |
| DIIS | 0.00 |
| Public | 35.51 |
Vidhi Specialty Share Price Target 2030:
| Year | Vidhi Specialty Share Price in 2030 |
| 2030 | ₹2030 to ₹2440 |
Vidhi Specialty Share FAQ
Is Vidhi Specialty a multibagger stock?
Yes, around the year 2013 vidhi specialty share was trading around 3-4 rupees, from that level stock have touched the level of 514 rupees, around more than 120x.
Is Vidhi Specialty a good buy?
Definitely yes, because share have corrected from its top level and now trading around 360, level, so it’s an opportunity.
Conclusion:
Overall, Vidhi Specialty is a good company , company’s financials are robust and company is continuously growing and performing. Their presence is across the globe and their major revenue comes from international market and also is the second largest color manufacturer in Asia. Therefore in coming year we can expect a strong growth .
Here is the end of the post Vidhi Specialty share price target 2023,2024, 2025-2030. Hope we provided some value, please write your suggestion below in comment section.
Source: Vidhi Specialty Annual Report and Internet
Disclaimer: On this page all the mentioned entries are based on the date the post was written, these could be change in future.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
