Veto Switchgears & Cables Ltd. (VETO) AI Stock Analysis

• Market Cap: ₹1.91B
• Dividend Yield: 0.86%
• Average Volume (3M): 4.48K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.92
• Revenue Growth: 7.26%
• EPS Growth: 19.13%
• Country: IN
• Employees: 331
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.45
• Shares Outstanding: 19,114,956
• 10 Day Avg. Volume: 2,610
• 30 Day Avg. Volume: 4,480
• PEG Ratio: 0.43
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -35.83
• 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: 70 Outperform
• Price Target: ₹110.00 ▼(-2.05% Downside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

Veto Switchgears & Cables Ltd. has a solid financial foundation with consistent revenue growth and a strong equity position. However, challenges in operational margins and cash flow need addressing. The stock's valuation is attractive, providing a potential opportunity for investors. Technical indicators suggest stability but lack a strong trend.

Positive Factors

Revenue & EPS Growth

Sustained ~16% revenue growth alongside ~44% EPS growth signals rising product demand and improving profitability per share. Over 2–6 months this underpins capacity to reinvest, supports margin recovery initiatives, and indicates structural customer adoption rather than a one-off blip.

Conservative Capital Structure

Very high equity ratio and very low leverage provide financial flexibility and resilience. This durable strength lowers refinancing and solvency risk, enabling the company to fund capex or absorb shocks without depending on volatile debt markets over the coming months.

Product Offering & Market Role

A focused portfolio of low-voltage switchgear and cables targets core infrastructure and industrial supply chains. This alignment with essential electrical distribution components provides steady structural demand and repeatable revenue streams across cycles, supporting medium-term stability.

Negative Factors

Negative Free Cash Flow

Conversion of accounting profits into cash weakened, with FCF turning negative and operating cash-to-net-income falling. Over 2–6 months this constrains liquidity for working capital, capex or dividends and increases reliance on external funding or equity to support growth.

Declining Operational Margins

A sharp drop in EBIT margin and softer gross margin indicate rising costs or pricing pressure. Sustained margin compression reduces operating cash generation and strategic flexibility, making margin recovery and cost control key for durable profitability improvements.

Asset Utilization / Efficiency

While ROE improved, management notes suboptimal asset utilization. Low-to-moderate ROE and constrained asset turnover limit long-term capital efficiency and the pace at which returns can scale, requiring better working capital or asset deployment to sustain growth.

Veto Switchgears & Cables Ltd. Business Overview & Revenue Model

Company Description

Veto Switchgears and Cables Limited, together with its subsidiaries, manufactures and sells wires and cables, and electrical accessories in India and internationally. The company operates through Wire and Cables, Lighting & Fittings, and Accessories & Others segments. It provides electrical accessories, including vyoma, carino, and power modular switches, as well as PUF and ZAC switches; and MCBs/isolators/distribution boxes, and bells and extension cords. The company also offers wires and cables, such as multi strand, L.T. industrial, and copper flexible cables; ceiling, ventilation, and fresh air fans, as well as submersible pumps; and LED panels, street lights, flood lights, concealed lights, deep lights, bulbs, and tubelights, as well as surface and spot lights, wall and track lights, and strip lights and lighting chains. In addition, it provides telephone and co-axial wires, compact fluorescent lamps, slim panel lights, immersion heaters, distribution boards, and other electrical accessories, such as switch socket, MCB, bell, and all other electrical accessories. The company markets its products under the VETO and VIMAL POWER brand names through a network of dealers and distributors. Veto Switchgears and Cables Limited was founded in 1967 and is based in Jaipur, India.

How the Company Makes Money

null

Veto Switchgears & Cables Ltd. Financial Statement Overview

Summary

Veto Switchgears & Cables Ltd. shows consistent revenue growth and a strong equity position. However, recent declines in operational margins and negative cash flow highlight the need for strategic improvements in cost management and liquidity.

Income Statement

Veto Switchgears & Cables Ltd. has shown consistent revenue growth over the years with a slight decline in gross profit margin recently. The net profit margin improved to 7.4% in 2025 from 6.0% in 2024, reflecting better cost management. EBIT margin is strong, though it decreased from 17.7% in 2024 to 9.5% in 2025, indicating a need to control operational expenses.

Balance Sheet

The company's balance sheet reflects solid equity with a healthy equity ratio of 80.2% in 2025. The debt-to-equity ratio is low at 0.09, suggesting conservative leverage. Return on equity increased to 8.3% in 2025, highlighting effective use of shareholder funds, though there's room for improvement in asset utilization.

Cash Flow

Cash flow remains a concern, with free cash flow turning negative in 2025. The operating cash flow to net income ratio has decreased, indicating potential liquidity management issues. However, previous years' positive free cash flow shows the potential for recovery.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.19B	3.00B	3.00B	2.91B	2.68B	1.82B
Gross Profit	796.14M	593.77M	752.96M	765.38M	697.76M	341.50M
EBITDA	338.69M	342.37M	353.75M	377.59M	368.07M	248.24M
Net Income	210.38M	221.32M	179.52M	202.47M	200.17M	147.94M
Balance Sheet
Total Assets	3.52B	3.32B	3.06B	3.21B	3.09B	2.74B
Cash, Cash Equivalents and Short-Term Investments	75.47M	14.47M	79.37M	152.49M	94.50M	125.89M
Total Debt	161.09M	229.48M	225.60M	433.88M	469.33M	356.23M
Total Liabilities	747.50M	648.05M	589.37M	874.93M	953.01M	794.67M
Stockholders Equity	2.76B	2.66B	2.46B	2.33B	2.13B	1.94B
Cash Flow
Free Cash Flow	75.75M	-62.14M	206.48M	128.89M	-97.01M	42.28M
Operating Cash Flow	103.07M	135.38M	269.47M	179.72M	-84.31M	74.03M
Investing Cash Flow	-19.35M	-184.88M	-56.73M	-41.50M	-1.89M	-73.85M
Financing Cash Flow	-78.31M	-15.48M	-273.13M	-98.86M	43.15M	-16.19M

Veto Switchgears & Cables Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VETO, the sentiment is Negative. The current price of 112.3 is above the 20-day moving average (MA) of 102.53, above the 50-day MA of 104.01, and below the 200-day MA of 115.15, indicating a bearish trend. The MACD of -1.22 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 37.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VETO.

Veto Switchgears & Cables Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VETO	70 Outperform	₹1.91B	8.32	―	0.86%	7.26%	19.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HPL	60 Neutral	₹20.70B	33.68	―	0.24%	6.08%	49.44%
HIRECT	58 Neutral	₹25.86B	49.83	―	0.13%	35.05%	99.65%
SALZERELEC	58 Neutral	₹10.64B	24.44	―	0.36%	21.51%	-17.75%
SUNDRMBRAK	56 Neutral	₹2.26B	-54.31	―	0.22%	4.26%	-121.56%
KECL	49 Neutral	₹5.51B	41.93	―	―	-11.25%	-48.96%