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

• Market Cap: ₹2.18B
• Dividend Yield: 0.88%
• Average Volume (3M): 5.28K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.81
• Revenue Growth: 3.29%
• EPS Growth: 17.82%
• Country: IN
• Employees: 331
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.93
• Shares Outstanding: 19,114,956
• 10 Day Avg. Volume: 8,559
• 30 Day Avg. Volume: 5,281
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹137.00
• Price Target Upside: 20.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹137.00 ▲(20.12% Upside)

Veto Switchgears & Cables Ltd. has a strong financial foundation with consistent revenue growth and a solid equity position. However, challenges in operational margins and cash flow management need addressing. The stock's valuation is attractive, but technical indicators suggest mixed momentum, warranting cautious optimism.

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

Veto Switchgears & Cables Ltd. generates revenue through the manufacturing and sale of electrical products. The company's key revenue streams include the sale of wires and cables, which are widely used in various infrastructure and construction projects. Additionally, VETO offers electrical accessories and switchgear products, providing a comprehensive portfolio for electrical installations. The company likely has distribution partnerships and a network of dealers and retailers which facilitate the sale of their products across different regions. VETO's earnings are influenced by factors such as demand in the construction and infrastructure sectors, market expansion, and product diversification.

Veto Switchgears & Cables Ltd. Financial Statement Overview

Summary

Veto Switchgears & Cables Ltd. demonstrates solid financial health with consistent revenue growth and a strong equity position. However, recent declines in operational margins and 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	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.91B	3.00B	2.91B	3.00B	2.68B	1.81B
Gross Profit	676.21M	593.77M	765.38M	752.96M	697.76M	480.07M
EBITDA	306.27M	342.37M	377.59M	353.75M	368.07M	248.24M
Net Income	167.35M	221.32M	202.47M	179.52M	200.17M	147.94M
Balance Sheet
Total Assets	0.00	3.32B	3.21B	3.06B	3.09B	2.74B
Cash, Cash Equivalents and Short-Term Investments	21.98M	14.47M	152.49M	121.35M	94.50M	125.89M
Total Debt	0.00	229.48M	433.88M	225.60M	469.33M	356.23M
Total Liabilities	-2.58B	648.05M	874.93M	589.37M	953.01M	794.67M
Stockholders Equity	2.58B	2.66B	2.33B	2.46B	2.13B	1.94B
Cash Flow
Free Cash Flow	0.00	-62.14M	128.89M	206.48M	-97.01M	42.28M
Operating Cash Flow	0.00	135.38M	179.72M	269.47M	-84.31M	74.03M
Investing Cash Flow	0.00	-184.88M	-41.50M	-56.73M	-1.89M	-73.85M
Financing Cash Flow	0.00	-15.48M	-98.86M	-273.13M	48.23M	-37.28M

Veto Switchgears & Cables Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.05
• 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:VETO, the sentiment is Negative. The current price of 114.05 is below the 20-day moving average (MA) of 115.34, below the 50-day MA of 118.76, and below the 200-day MA of 117.20, indicating a bearish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 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	69 Neutral	₹2.18B	10.66	―	0.88%	3.29%	17.82%
SALZERELEC	61 Neutral	13.77B	19.79	8.45%	0.32%	21.71%	35.01%
HPL	60 Neutral	29.84B	32.74	10.25%	0.22%	10.26%	77.36%
HIRECT	60 Neutral	29.13B	68.20	23.21%	0.12%	32.24%	144.50%
SUNDRMBRAK	56 Neutral	2.97B	96.02	5.21%	0.20%	5.14%	-61.05%
KECL	50 Neutral	7.69B	344.70	3.26%	―	-5.35%	-84.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%