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Vimta Labs Limited

VIMTALABS.BO
68
Medical - Diagnostics & Research · Healthcare
Price
₹630.50
-8.80 (-1.38%)
Market Cap
₹28.18B
Exchange
Bombay Stock Exchange
Winston Score
68
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Good
Stability
Exceptional
Valuation
Good
Dividends
Weak

Share count rising — dilution

+99.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 22.6M (2022) → 45.1M (2026)

Winston Score History

The full picture

Vimta Labs Limited is an Indian testing and research company that checks whether medicines, food, and environmental samples are safe and meet quality standards. Its main customers are pharmaceutical companies, food manufacturers, and government agencies that need certified lab results before they can sell or approve products. Vimta is one of India's established independent contract testing laboratories, accredited by multiple national and international bodies.

The company earns money by charging fees each time a client sends samples for testing, analysis, or clinical research services — there are no subscriptions, just service contracts and project-based work. Vimta operates primarily in India, with its main facilities in Hyderabad, and generates revenue largely from domestic pharmaceutical clients, though export-oriented drug makers also use its services to meet global regulatory requirements. Its key growth driver is the continued expansion of India's pharmaceutical manufacturing sector, which increases demand for third-party testing; the main risk is pricing pressure and competition from larger global contract research organizations entering the Indian market.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+15.1% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

₹10M/ year

0.3% of revenue

Below sector average (18%)

Research and development spending

Insider Activity

65.8%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

₹0 cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Vimta Labs Limited is a rare growth stock that's already generating positive cash flow while growing at 16%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
40.7%
Healthy — 40.7% gross margin
Profit after running costs
Operating Margin
22.7%
Excellent — 22.7% operating margin
Return on the money invested
ROCE
21.4%
Exceptional — 21.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+14.2%
Fast-growing sales (+14.2% YoY)
Profit growth
EPS YoY
+7.4%
Modest earnings growth (+7.4% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
94%
Modest — 94% of profit becomes cash
Spare cash per sale
FCF Margin
6.5%
Modest free cash flow (6.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.01
Conservative — low debt load (0.01)
Covers its interest
Interest Cover
90.62x
Comfortably covers interest (90.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
35.3x
Pricey — P/E 35.3

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+5.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (35.3 → 30.3)

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Dividends

Dividend
Dividend Yield
0.33%
Small dividend — 0.33% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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