Vidhi Specialty Food Ingredients Limited, incorporated in 1994, is a leading manufacturer of Superior Synthetic and Natural Food Grade Colours. The company is Asia's 2nd largest food colour manufacturer and the 3rd largest manufacturer of synthetic food-grade dyes globally. The company was formerly known as Vidhi Dyestuffs Manufacturing Limited and changed its name to Vidhi Specialty Food Ingredients Limited in August 2016. Vidhi Specialty Food Ingredients Limited is based in Mumbai, India.
The company has established itself as a significant player in the global food color manufacturing industry, with operations spanning across multiple continents. Its colors are being distributed and consumed in over 80 countries across six continents. This extensive global reach demonstrates the company's strong market presence and international recognition for its high-quality products.
The Company is engaged in the manufacturing of superior synthetic colors, including synthetic water-soluble colors, aluminum lakes, food, drugs and cosmetics (FD&C) colors, FD&C lakes, D&C colors, blends, co-blended lakes, and co-blended granules. The company also offers cosmetic colors, natural colors, and colorants for personal and home care products.
The company's products have applications in various industries such as Food & Beverage, Confectionery, Pharmaceuticals, Pet Foods, Cosmetics, Inkjet Inks, Personal Care, and Home Care. This diversification across multiple end-use industries provides the company with a stable revenue base and reduces dependency on any single sector.
The manufacturing facilities of the Company are spread over an area of 1,76,000 square feet located in Dhatav, Maharashtra. The company has two manufacturing facilities in Maharashtra and one in Gujarat. Vidhi Specialty Food Ingredients maintains high-quality standards and is an ISO 9001, ISO 22000, ISO 17025, HACCP, FSSC 22000 (GFSI), and GMP certified company.
Its manufacturing facilities have been audited and found satisfactory by the U.S. FDA. All food-grade colors carry HALAL and Kosher certifications. These certifications and approvals demonstrate the company's commitment to meeting international quality standards and regulatory requirements.
Vidhi Specialty Food Ingredients Ltd has a market capitalisation of ₹2,224 crore as on 16-May-2025. As per Value Research classification, it is a Small Cap company. The company's P/B ratio is 7.39 times as on 16-May-2025, which is a 327% premium to its peers' median range of 1.73 times. The P/E ratio is 51.24 times as on 16-May-2025, a 77% premium to its peers' median range of 28.98 times.
#### FY 2025 Performance
For the full year ended March 2025, net profit rose 19.07% to ₹43.40 crore as against ₹36.45 crore during the previous year ended March 2024. Sales rose 28.30% to ₹382.30 crore in the year ended March 2025 as against ₹297.97 crore during the previous year ended March 2024.
#### Q4 FY25 Performance (Quarter ended March 2025)
Net profit of Vidhi Specialty Food Ingredients rose 13.55% to ₹11.90 crore in the quarter ended March 2025 as against ₹10.48 crore during the previous quarter ended March 2024. Sales rose 40.24% to ₹109.53 crore in the quarter ended March 2025 as against ₹78.10 crore during the previous quarter ended March 2024.
#### Q3 FY25 Performance (Quarter ended December 2024)
Net profit of Vidhi Specialty Food Ingredients rose 48.20% to ₹12.73 crore in the quarter ended December 2024 as against ₹8.59 crore during the previous quarter ended December 2023. Sales rose 56.46% to ₹98.52 crore in the quarter ended December 2024 as against ₹62.97 crore during the previous quarter ended December 2023.
#### Q2 FY25 Performance (Quarter ended September 2024)
Net profit of Vidhi Specialty Food Ingredients rose 14.54% to ₹10.32 crore in the quarter ended September 2024 as against ₹9.01 crore during the previous quarter ended September 2023. Sales rose 13.90% to ₹91.29 crore in the quarter ended September 2024 as against ₹80.15 crore during the previous quarter ended September 2023.
- Market Capitalization: ₹2,224 Crore (as of 16-May-2025)
- P/B Ratio (16-May-2025): 7.39 times
- P/E Ratio (16-May-2025): 51.24 times
- Dividend (FY 2024): ₹2.0 per share (Dividend Yield: 0.4% at current price of ₹458.8)
As of December 2024, company promoters held 64.27% stake in VIDHI SPECIALTY FOOD INGREDIENTS, with no shares having been pledged. The chairman and managing director of the company is Bipin M Manek. The high promoter holding indicates strong management confidence in the company's future prospects, while the absence of pledged shares suggests a healthy financial position of the promoters.
Vidhi Specialty Food Ingredients' major competitors include Dynemic Products, Privi Speciality Che, Kiri Industries, Bodal Chemicals, Shree Pushkar Chem, Bhageria Industries, and Asahi Songwon Colors. The Market Cap of Vidhi Specialty Food is ₹2,269 Crs, while the median market cap of its peers is ₹810 Crs. Vidhi Specialty Food appears to be financially stable compared to its competitors, suggesting a lower probability of it facing bankruptcy or a financial crunch.
The counter has outperformed the market in the past year, surging 32.36% as against Sensex's 8.11% increase. However, the company has delivered a poor sales growth of 11.2% over the past five years. This suggests that while recent performance has been strong, the company's historical growth trajectory has been modest. The Company's subsidiary is Arjun Food Colorants Manufacturing Private Limited, which may provide additional operational flexibility and growth opportunities.
The company's strong global presence, comprehensive product portfolio, and established manufacturing infrastructure position it well in the specialty chemicals sector. The recent financial performance shows positive momentum with consistent growth in both revenue and profitability across quarters. However, investors should consider the premium valuation metrics and historical growth patterns when making investment decisions.
