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

• Market Cap: ₹2.40B
• Dividend Yield: 0.8%
• Average Volume (3M): 9.80K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.64
• Revenue Growth: 0.09%
• EPS Growth: 23.31%
• Country: IN
• Employees: 331
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.84
• Shares Outstanding: 19,114,956
• 10 Day Avg. Volume: 12,165
• 30 Day Avg. Volume: 9,802
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 10.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹137.00 ▲(10.84% Upside)

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 management need addressing. The technical indicators suggest a cautious outlook with potential for recovery, while the valuation is attractive for value investors.

Veto Switchgears & Cables Ltd. Business Overview & Revenue Model

Company Description

Veto Switchgears & Cables Ltd. (VETO) is an Indian company that operates in the electrical industry, specializing in the manufacturing and distribution of electrical equipment. The company primarily focuses on producing a wide range of electrical products including wires, cables, and electrical accessories. VETO serves sectors such as construction, infrastructure, and industrial projects, providing essential components for electrical installations and systems.

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

Consistent revenue growth and strong equity position are positive, but recent declines in operational margins and cash flow are concerning. The company needs 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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.00B	2.91B	3.00B	2.68B	1.81B
Gross Profit	593.77M	765.38M	752.96M	697.76M	480.07M
EBITDA	342.37M	377.59M	353.75M	368.07M	248.24M
Net Income	221.32M	202.47M	179.52M	200.17M	147.94M
Balance Sheet
Total Assets	3.32B	3.21B	3.06B	3.09B	2.74B
Cash, Cash Equivalents and Short-Term Investments	14.47M	152.49M	121.35M	94.50M	125.89M
Total Debt	229.48M	433.88M	225.60M	469.33M	356.23M
Total Liabilities	648.05M	874.93M	589.37M	953.01M	794.67M
Stockholders Equity	2.66B	2.33B	2.46B	2.13B	1.94B
Cash Flow
Free Cash Flow	-62.14M	128.89M	206.48M	-97.01M	42.28M
Operating Cash Flow	135.38M	179.72M	269.47M	-84.31M	74.03M
Investing Cash Flow	-184.88M	-41.50M	-56.73M	-1.89M	-73.85M
Financing Cash Flow	-15.48M	-98.86M	-273.13M	48.23M	-37.28M

Veto Switchgears & Cables Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 123.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VETO, the sentiment is Neutral. The current price of 123.6 is below the 20-day moving average (MA) of 126.55, below the 50-day MA of 127.27, and above the 200-day MA of 121.20, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹2.40B	10.98		0.80%	0.09%	23.31%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
SALZERELEC	61 Neutral	₹15.53B	24.87		0.28%	21.61%	40.53%
HIRECT	60 Neutral	₹32.77B	76.28		0.11%	32.24%	144.50%
SUNDRMBRAK	56 Neutral	₹3.07B	97.41		0.20%	5.14%	-61.05%
HPL	54 Neutral	₹37.56B	40.06		0.17%	10.26%	77.41%
KECL	50 Neutral	₹7.87B	353.06		―	-5.35%	-84.29%