Dashboard/VASCONEQ

VASCONEQ

FAIRLY_VALUED

Vascon Engineers Limited

Others · NSE

↑ 60.3% vs fair value

52W Low

₹27

+23.0% from low

52W High

₹75

-55.9% from high

News sentiment (1 articles)

1 bull0 neutral0 bear

✦

Analyst Note

Today

Vascon Engineers trades at ₹32.9, roughly 60% below its estimated fair value of ₹82.96, presenting a significant margin of safety with medium confidence. However, the company faces headwinds: earnings collapsed 87.9% year-on-year while revenue declined 15.4%, and ROCE has deteriorated to 13.5%. The balance sheet remains healthy with manageable 0.24 debt-to-equity, though negative free cash flow of ₹14 Cr and low-quality earnings raise concerns. This deep-value play suits contrarian investors comfortable with turnaround stories in a beaten-down sector.

Valuation Gauge

FAIRLY_VALUED+60.3% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹33

Fair Value

₹83

Fair Value Analysis

₹83

Based on free cash flow projections and balance sheet strength analysis and earnings growth potential for Others sector companies | Sector-cheap: P/E at 10th percentile vs sector peers. | CAUTION: ROCE declining (latest 6.8%) — returns on capital are falling; verify this isn't a value trap. | Growth capped at 11.7% (ROE 10.2%×1.15) — historical CAGR exceeds sustainable rate or COVID period unverifiable. | COVID-resilient: PAT dropped from ₹5Cr (FY2019) to ₹-40Cr (FY2021) during COVID but has fully recovered.

Medium confidence

Cash Flow Analysis

33% weight

₹52

Balance Sheet Value

33% weight

₹76

Growth Valuation

33% weight

₹121

Price vs Market

VASCONEQ

Nifty 50

Technical Pulse

Plain English — no jargon

RSI 49.2Neutral

52-week range-18% from high

L 26.75H 40.8

20-day avg₹32▲ 3.5%

📍

Price PositionNeutral

Not enough price history to assess trend.

💪

Momentum (RSI)Neutral

RSI is 49 — neutral momentum, neither overbought nor oversold.

📈

Short-term TrendNeutral

Insufficient data for short-term trend.

→Combined Verdict

Fairly valued with neutral momentum. Hold if you own it. No urgent reason to buy or sell.

Shareholding Pattern

Stock Health Score

B+

Financially Healthy

7.2 / 10

Profitability

8/10

ROE of 10.2% is acceptable for Others sector (benchmark: 15%)

Debt & Leverage

10/10

D/E ratio of 0.2x is well within the Others sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 6.4x trades at a 84% discount to Others sector median (40x) — attractively valued

Cash Flow

1/10

Negative FCF of ₹-14 Cr — company is consuming more cash than it generates

Earnings Growth

10/10

5yr EPS CAGR of 54.5% is well above the Others sector average of 12.0% — strong growth

Dividend

4/10

No dividend — typical for growth-stage companies

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

9.7%

Free cash flow / market cap

Revenue Growth (YoY)

+19.8%

Year-on-year revenue change

Profit Growth (YoY)

+71.0%

Year-on-year PAT change

Operating Cash Flow

₹5 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹5.1

P/E Ratio

6.4x

P/B Ratio

0.7x

ROE

10.2%

ROCE

13.5%

Debt / Equity

0.24x

Beta

0.35

Div Yield

—

FCF (Cr)

₹-14 Cr

Revenue (Cr)

₹1,074 Cr

EPS Growth 5Y

54.5%

Mkt Cap (Cr)

₹777 Cr

52W High

₹74.6

52W Low

₹26.8

Book Value/Share

₹49.8

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹1.1K Cr	₹79 Cr	7.0%	₹78 Cr	₹3.45
2025-03-31	₹1.1K Cr	₹88 Cr	8.0%	₹130 Cr	₹5.74
2024-03-31	₹764 Cr	₹76 Cr	10.0%	₹68 Cr	₹3.02
2023-03-31	₹1.0K Cr	₹118 Cr	12.0%	₹99 Cr	₹4.49
2022-03-31	₹657 Cr	₹23 Cr	3.0%	₹36 Cr	₹1.62
2021-03-31	₹506 Cr	₹-13 Cr	-3.0%	₹-40 Cr	₹-2.24
2020-03-31	₹521 Cr	₹55 Cr	11.0%	₹40 Cr	₹2.22
2019-03-31	₹524 Cr	₹8 Cr	2.0%	₹5 Cr	₹0.38
2018-03-31	₹539 Cr	₹8 Cr	1.0%	₹5 Cr	₹0.33
2017-03-31	₹490 Cr	₹-6 Cr	-1.0%	₹1 Cr	₹0.12
2016-03-31	₹588 Cr	₹37 Cr	6.0%	₹9 Cr	₹0.53
2015-03-31	₹623 Cr	₹-94 Cr	-15.0%	₹-145 Cr	₹-9.17
2014-03-31	₹624 Cr	₹14 Cr	2.0%	₹-43 Cr	₹-2.80

Compounded Growth Rates

Sales Growth

3Y+2.1%

5Y+16.4%

10Y+6.3%

Profit Growth

3Y-7.6%

5Y—

10Y+24.1%

EPS Growth

3Y-8.4%

5Y—

10Y+20.6%

Peer Comparison

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