Vascon Engineers Limited (VASCONEQ) AI Stock Analysis

• Market Cap: ₹7.20B
• Dividend Yield: N/A
• Average Volume (3M): 979.37K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.81
• Revenue Growth: 3.46%
• EPS Growth: 159.96%
• Country: IN
• Employees: 752
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.41
• Shares Outstanding: 228,667,110
• 10 Day Avg. Volume: 570,650
• 30 Day Avg. Volume: 979,368
• PEG Ratio: 0.07
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -64.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹33.00 ▼(-30.64% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by solid fundamental performance (revenue/profitability improvement and a stable balance sheet), tempered by cash flow volatility and negative free cash flow in 2025. Technically, the stock is in a pronounced downtrend (below key moving averages with negative MACD), while valuation appears supportive with a low P/E.

Positive Factors

Multi-year revenue growth

Consistent multi-year revenue growth to ₹10,904m (2025) indicates durable demand and successful project wins across EPC and development. Sustained top-line expansion improves scale economics, spreads fixed costs, strengthens bidding power, and supports backlog visibility and margin resilience over coming quarters.

Improved leverage and balance sheet

Rising equity and an improved debt-to-equity ratio enhance financial flexibility, enabling the firm to fund project working capital and bid for larger contracts without immediate refinancing. Strong equity ratio reduces solvency risk and provides a structural cushion during project execution cycles and sector volatility.

Operating cash flow turnaround

A move to positive operating cash flow reflects improved collections and execution efficiency, which is critical for a project-driven firm. If sustained, stronger operating cash reduces reliance on external funding, supports working-capital-heavy projects, and improves the company's ability to self-fund near-term project ramps.

Negative Factors

Negative free cash flow in 2025

Material negative free cash flow in 2025 signals that profits are not fully converting into distributable cash, likely due to capex or working-capital demands. Persistent negative FCF can force additional borrowing, limit reinvestment in projects, and weaken the firm's ability to absorb execution delays or fund growth organically.

Earnings volatility / EPS decline

A sharp EPS contraction (~-30.7%) highlights earnings volatility and less predictable profitability. This reduces internal capital accumulation, undermines investor confidence in sustainable margins, and indicates operational or one-time pressures that could impair long-term reinvestment and resilience through sector downturns.

Cyclicality of EPC and real estate

The firm's core mix of EPC and real estate development is inherently cyclical and sensitive to macro, funding, and execution risks. Revenue depends on milestone billing and property sales; economic slowdowns or financing squeezes can delay collections and compress margins, making cash conversion and backlog stability less predictable.

Vascon Engineers Limited Business Overview & Revenue Model

Company Description

Vascon Engineers Limited provides engineering, procurement, and construction (EPC) services in India. It operates through EPC, Real Estate Development, and Manufacturing & Building Management System (BMS) segments. The company constructs residential, commercial, industrial, institutional, hospitals, and hospitality projects; and develops residential properties, hotel premises, industrial parks, malls and multiplexes, hospitals, and schools, hospitality and community welfare centres. It also manufactures clean room partitions and BMS. Vascon Engineers Limited was incorporated in 1986 and is based in Pune, India.

How the Company Makes Money

Vascon Engineers Limited primarily earns revenue through (1) construction/EPC contracts and (2) real estate development. In the construction/EPC business, the company generates income by executing projects for clients (e.g., commercial, residential, industrial and/or public sector projects depending on awarded contracts), typically recognizing revenue based on project progress/contract performance and receiving cash through milestone or running account billings; margins depend on contract pricing, execution efficiency, input costs, and timely client payments. In real estate development, the company makes money by developing and selling completed units (or selling under-construction units where permitted), with revenues driven by sales volumes, pricing, project completion timelines, and collections from customers. Any additional specific breakdown of revenue by segment, named material partnerships, or client concentration details for VASCONEQ is null.

Vascon Engineers Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and improved profitability/operating efficiency support the score, and the balance sheet is generally stable with improved leverage. The main constraint is cash flow quality, with a significant negative free cash flow in 2025 and inconsistent conversion of profits into free cash flow.

Income Statement

Vascon Engineers Limited has demonstrated a strong revenue growth trajectory with a notable increase in total revenue from ₹4,829 million in 2020 to ₹10,904 million in 2025. The gross profit margin remains healthy, although there was a slight decline in gross profit from 2024 to 2025. The company has successfully improved its net profit margin and EBIT margin over the years, reflecting enhanced operational efficiency and profitability. However, the sharp increase in EBIT in 2025 compared to 2024 indicates a significant improvement in operational performance.

Balance Sheet

The company's balance sheet reflects a stable financial position with increasing stockholders' equity and total assets. The debt-to-equity ratio has improved, indicating better leverage management. The equity ratio has remained strong, suggesting good financial health. However, the company's total debt level, while manageable, has seen fluctuations that could pose potential risks if not controlled.

Cash Flow

The cash flow statement shows fluctuations in free cash flow, with a significant negative free cash flow in 2025 compared to previous years. Operating cash flow has improved from a negative position in 2024 to a positive in 2025, indicating better cash generation from operations. Nonetheless, the free cash flow to net income ratio indicates that the company may face challenges in converting profits into free cash flow consistently.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.29B	10.78B	10.34B	9.98B	6.51B	5.05B
Gross Profit	1.48B	1.78B	1.93B	2.02B	1.28B	979.68M
EBITDA	1.90B	1.00B	1.05B	1.08B	713.30M	-27.29M
Net Income	1.44B	1.30B	668.92M	974.91M	351.86M	-408.20M
Balance Sheet
Total Assets	21.97B	21.28B	18.62B	16.49B	14.90B	13.16B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.34B	349.73M	645.30M	613.57M	351.85M
Total Debt	2.75B	2.06B	1.94B	1.42B	1.65B	2.15B
Total Liabilities	10.70B	10.36B	8.67B	7.25B	6.66B	6.07B
Stockholders Equity	11.27B	10.93B	9.81B	9.12B	8.11B	6.99B
Cash Flow
Free Cash Flow	-756.60M	-135.90M	-487.83M	617.37M	182.72M	658.49M
Operating Cash Flow	-729.10M	47.60M	-285.08M	1.04B	332.81M	701.14M
Investing Cash Flow	-242.20M	680.80M	-118.80M	-319.83M	-126.61M	56.86M
Financing Cash Flow	427.90M	269.00M	53.10M	-441.27M	-221.40M	-718.61M

Vascon Engineers Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VASCONEQ, the sentiment is Negative. The current price of 47.58 is above the 20-day moving average (MA) of 36.29, above the 50-day MA of 40.52, and below the 200-day MA of 51.55, indicating a bearish trend. The MACD of -2.49 indicates Positive momentum. The RSI at 27.26 is Positive, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VASCONEQ.

Vascon Engineers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CREST	63 Neutral	₹9.19B	24.59	―	0.26%	-9.89%	-42.10%
VASCONEQ	61 Neutral	₹7.20B	27.62	―	―	3.46%	159.96%
ROHLTD	61 Neutral	₹8.89B	31.71	―	0.61%	10.77%	-4.40%
DVL	60 Neutral	₹7.28B	41.40	―	1.75%	-16.02%	-61.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VAKRANGEE	54 Neutral	₹6.44B	66.64	―	0.62%	17.25%	51.76%

Vascon Engineers Limited Corporate Events

Vascon Engineers Wins ₹115.9 Crore Lotus Park Project, Boosting Order Book and Urban Infra Push

Vascon Engineers Limited, a leading EPC and realty player with a four-decade legacy in delivering large-scale residential, commercial, and industrial projects across India, continues to build its presence in urban infrastructure and premium housing. The company leverages an annual execution capacity of about 8 million square feet and a project team of over 800 professionals to support its growth ambitions in both EPC and real estate segments.

The company has secured a ₹115.90 crore EPC contract from the Ahmedabad Municipal Corporation for the development of Lotus Park over 54,000 square meters in the city’s South West Zone, to be completed within 24 months of the work order. This win lifts Vascon’s order book to about ₹2,825 crore, representing 2.8 times its FY25 EPC revenues, reinforcing its track record in civic infrastructure, deepening engagement with municipal bodies, and bolstering stakeholder confidence in its execution capabilities.

CRISIL Reaffirms Vascon Engineers’ Ratings as Bank Facilities Raised to ₹1,250 Crore

Vascon Engineers Limited has announced that CRISIL Ratings has reaffirmed its long-term credit rating at CRISIL A-/Stable and its short-term rating at CRISIL A2+, even as the total bank loan facilities rated have been increased to Rs 1,250 crore from Rs 725 crore. The reaffirmation of these ratings, alongside an enhanced borrowing limit, underscores the rating agency’s continued confidence in the company’s credit profile and its ability to meet obligations on time, which may support Vascon’s access to bank financing and strengthen its position in the construction and infrastructure market.