Vascon Engineers Limited (VASCONEQ) AI Stock Analysis

• Market Cap: ₹9.48B
• Dividend Yield: N/A
• Average Volume (3M): 979.37K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.84
• Revenue Growth: 3.46%
• EPS Growth: 159.96%
• Country: IN
• Employees: 752
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.51
• 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: ₹44.00 ▼(-7.52% Downside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. However, bearish technical indicators and cash flow challenges weigh down the score. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Sustained revenue growth

The multi-year revenue rise indicates durable demand for Vascon's EPC and development services, supporting scalable operations and stronger bidding leverage. Persistent top-line growth provides capacity to invest in backlog conversion, workforce and systems over the next several quarters.

Improving profit margins

Consistent margin improvement and a sharp EBIT increase in 2025 reflect lasting gains in execution efficiency and cost control on projects. Higher margins boost cash generation potential per project and improve resilience to input-cost volatility across future contract cycles.

Stronger balance sheet metrics

An improving debt-to-equity ratio and strong equity ratio enhance financial flexibility for bidding and scaling projects. Better leverage management reduces refinancing pressure and supports capital allocation for growth or working-capital needs over the medium term.

Negative Factors

Volatile free cash flow conversion

Negative free cash flow despite reported profits signals weak cash conversion, which can constrain capex, debt repayment and dividend optionality. Persistent FCF volatility risks reliance on external funding and can amplify stress if project collections slow or capex needs rise.

Fluctuating total debt levels

Intermittent increases in absolute debt introduce refinancing and interest-rate risks, particularly for a project-driven firm with working-capital timing swings. If cycles worsen, variable debt could restrict bidding capacity and increase finance costs over the coming quarters.

Cyclicality of construction and real estate

Exposure to construction and real-estate markets makes revenues and margins sensitive to economic cycles, interest rates and developer demand. Structural cyclicality can lead to uneven order books, margin pressure and cash timing stress across 2-6 month horizons.

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 generates revenue through various channels, primarily by undertaking construction contracts for government and private sector projects. The company's revenue model is built on a mix of fixed-price and cost-plus contracts, allowing for flexibility in pricing based on project specifications. Key revenue streams include residential and commercial building projects, infrastructure development, and specialized engineering services. Additionally, VASCONEQ has established significant partnerships with public and private sector entities, enhancing its project portfolio and opening new avenues for growth. The company also benefits from repeat business and long-term contracts, which provide stable cash flow and contribute to its overall financial performance.

Vascon Engineers Limited Financial Statement Overview

Summary

Vascon Engineers Limited has demonstrated strong revenue and profit growth, particularly in the latest fiscal year, indicating strong operational performance. However, fluctuations in cash flow metrics suggest potential challenges in cash management.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	11.03B	10.78B	10.34B	9.98B	6.51B	4.83B
Gross Profit	1.58B	1.78B	1.93B	2.02B	1.28B	1.28B
EBITDA	1.86B	1.00B	1.05B	1.08B	713.30M	723.89M
Net Income	1.43B	1.30B	668.92M	974.91M	351.86M	395.88M
Balance Sheet
Total Assets	0.00	21.28B	18.62B	16.49B	14.90B	13.56B
Cash, Cash Equivalents and Short-Term Investments	2.34B	2.34B	349.73M	645.30M	613.57M	442.41M
Total Debt	0.00	2.06B	1.94B	1.42B	1.65B	2.57B
Total Liabilities	-10.93B	10.36B	8.67B	7.25B	6.66B	6.12B
Stockholders Equity	10.93B	10.93B	9.81B	9.12B	8.11B	7.34B
Cash Flow
Free Cash Flow	0.00	-135.90M	-487.83M	617.37M	182.72M	328.51M
Operating Cash Flow	0.00	47.60M	-285.08M	1.04B	332.81M	375.19M
Investing Cash Flow	0.00	680.80M	-118.80M	-319.83M	-126.61M	-270.53M
Financing Cash Flow	0.00	269.00M	53.10M	-441.27M	-221.40M	-344.94M

Vascon Engineers Limited Technical Analysis

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

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 43.88, above the 50-day MA of 46.10, and below the 200-day MA of 52.33, indicating a bearish trend. The MACD of -1.58 indicates Negative momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 45.59 is Neutral, 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	₹10.64B	20.58	―	0.26%	-9.89%	-42.10%
VASCONEQ	61 Neutral	₹9.48B	6.43	―	―	3.46%	159.96%
ROHLTD	61 Neutral	₹9.84B	21.32	―	0.61%	10.77%	-4.40%
SATINDLTD	61 Neutral	₹9.05B	18.36	―	0.35%	26.49%	7.30%
DVL	60 Neutral	₹8.98B	13.41	―	1.75%	-16.02%	-61.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VAKRANGEE	54 Neutral	₹7.53B	63.94	―	0.62%	17.25%	51.76%

Vascon Engineers Limited Corporate Events

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.