V L S Finance Limited (VLSFINANCE) AI Stock Analysis

• Market Cap: ₹6.98B
• Dividend Yield: 0.52%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.42
• Revenue Growth: -98.34%
• EPS Growth: -106.71%
• Country: IN
• Employees: 35
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 5.31
• Shares Outstanding: 30,778,664
• 10 Day Avg. Volume: 1,366
• 30 Day Avg. Volume: 2,870
• PEG Ratio: -0.18
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 10.13
• P/FCF Ratio: 3.35
• 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: ₹240.00 ▼(-21.04% Downside)
• Action: Reiterated Date: 12/13/25
• Date: Action: Reiterated 12/13/25

V L S Finance Limited's overall stock score is primarily influenced by its strong balance sheet and positive technical indicators. However, the negative P/E ratio and low dividend yield significantly impact the valuation score, resulting in a moderate overall score.

Positive Factors

Strong balance sheet

An almost zero debt-to-equity ratio and a 91.2% equity ratio indicate a conservative capital structure that reduces refinancing and solvency risk. This durability supports steady operations, enables opportunistic portfolio deployment and cushions shocks for the next 2–6 months.

Robust cash generation

Operating cash flow materially outpacing reported earnings and strong free cash flow conversion (FCF/net income ~4.72) provide durable internal funding. This supports reinvestment, reduces reliance on external funding and preserves strategic flexibility over coming quarters.

High gross margin

A very high gross profit margin (~95.7%) reflects efficient cost structure in core investment operations. Even with top-line swings, this structural margin advantage helps preserve profitability potential as revenues recover and underpins sustainable operating leverage.

Negative Factors

Sharp revenue decline

A roughly 61% decline in reported revenue signals a materially weakened earnings base and persistent volatility in investment or financing income. This contraction limits near-term scaling, compresses room for consistent margin recovery and raises execution risk over the next several quarters.

Earnings deterioration

EPS declining over 60% indicates weakening profitability and less retained earnings to fund growth. Persistent earnings erosion can constrain capital allocation, reduce ability to rebuild the investment book and limit dividends or buybacks over a multi-quarter horizon.

Limited scale and liquidity

Very small headcount and low average trading volume point to limited operational scale and market liquidity. Structural constraints hinder rapid portfolio expansion, make raising capital costlier, and increase investor execution risk, affecting strategic initiatives over months.

V L S Finance Limited Business Overview & Revenue Model

Company Description

VLS Finance Limited provides various financial services in India. The company's corporate consulting and advisory services include private placement of equities, debentures, and preference shares and bonds with banks, financial institutions, foreign institutional investors, mutual funds, corporates, and high net worth clients; advising on the structuring of schemes for raising debts in the form of fixed income securities; project reports, evaluations, and appraisals from financial institutions/banks; syndication of term loans, working capital, bridge loans, and short term financing; and advisory services on financial and corporate restructuring, spin-offs, takeovers, and mergers and acquisitions. Its corporate consulting and advisory services also comprise arranging external commercial borrowings and advising on rupee term loan swaps with foreign currency loans; support services, including corporate finance, tax planning, audit and accounting, financial and legal consultancy for corporates; arranging factoring of book debts and credit rating; placement of commercial papers; creation of trusts and procedural aspects of securities creation; syndication of asset funding businesses; and identification and arrangement of tie-ups of domestic and foreign partnerships. In addition, the company offers investment banking services, such as determination of the issue size and pricing; drafting of the offer document and filling it with SEBI for approval; co-ordination with various regulatory authorities and private agencies during the issue; monitoring of the press, investor, and analyst meets; selection of the market timing; and other services. VLS Finance Limited was incorporated in 1986 and is based in New Delhi, India.

How the Company Makes Money

VLS Finance Limited primarily makes money through NBFC investment and financing activities: (1) Investment income: earnings from its portfolio of investments, which can include interest income on debt instruments and dividends/returns from equity holdings; this line can also include realized gains/losses from buying and selling investments. (2) Financing income: interest and related fees from lending/financing products (where and when the company originates such assets on its balance sheet). (3) Other income typical for NBFC/investment entities: fees or advisory/management income (only if reported by the company; otherwise null) and miscellaneous income from treasury/financial operations. The company’s reported profitability is therefore driven by the size and composition of its investment book, market movements affecting realizations/valuations, credit performance of any loan assets, funding costs, and regulatory constraints applicable to NBFCs. null

V L S Finance Limited Financial Statement Overview

Summary

V L S Finance Limited has a strong balance sheet and effective cash flow management, with a very low debt-to-equity ratio and positive free cash flow growth. However, the income statement shows significant volatility in revenue and declining profitability, which impacts the overall financial performance score.

Income Statement

V L S Finance Limited shows significant volatility in revenue, with a substantial decline in the latest year compared to previous periods. The gross profit margin is robust at 95.71% for the latest year, indicating efficient cost management, but net profits have decreased significantly, resulting in a net profit margin of 42.75%. This suggests challenges in maintaining profitability, possibly due to fluctuating revenues and inconsistent EBIT and EBITDA margins.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0003, indicating minimal leverage and a conservative capital structure. The equity ratio is healthy at 91.20%, reflecting strong equity financing and asset base. Return on equity is solid at 1.87%, but there is room for improvement in generating returns for shareholders.

Cash Flow

Cash flows are well-managed, with operating cash flow comfortably exceeding net income, reflecting strong cash-generating ability. Free cash flow growth is positive, supporting potential future investments. The free cash flow to net income ratio is high at 4.72, indicating effective cash conversion from earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	619.07M	720.68M	3.78B	263.39M	279.99M	2.20B
Gross Profit	589.01M	649.02M	3.72B	205.93M	228.69M	2.16B
EBITDA	-438.30M	629.84M	3.92B	624.34M	2.12B	2.09B
Net Income	-327.29M	462.04M	3.24B	559.71M	2.10B	2.21B
Balance Sheet
Total Assets	29.40B	27.11B	35.52B	30.63B	36.85B	30.68B
Cash, Cash Equivalents and Short-Term Investments	1.34B	3.38B	2.06B	1.53B	1.91B	1.91B
Total Debt	292.00K	8.62M	5.67M	18.05M	24.13M	0.00
Total Liabilities	2.90B	2.39B	5.70B	5.62B	7.20B	6.33B
Stockholders Equity	26.50B	24.72B	29.83B	25.01B	29.65B	24.31B
Cash Flow
Free Cash Flow	-45.76M	2.18B	1.53B	49.70M	1.45B	1.63B
Operating Cash Flow	-45.76M	2.18B	1.94B	73.09M	1.65B	1.66B
Investing Cash Flow	-1.98B	1.20B	-1.97B	269.14M	-1.85B	-722.50M
Financing Cash Flow	-51.02M	-433.10M	-125.13M	-677.91M	-107.31M	-57.99M

V L S Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.95
• 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:VLSFINANCE, the sentiment is Negative. The current price of 303.95 is above the 20-day moving average (MA) of 247.65, above the 50-day MA of 265.69, and above the 200-day MA of 249.75, indicating a bearish trend. The MACD of -10.67 indicates Positive momentum. The RSI at 27.58 is Positive, neither overbought nor oversold. The STOCH value of 18.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VLSFINANCE.

V L S Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIMESECU	74 Outperform	₹8.91B	111.43	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹5.51B	8.12	―	0.93%	17.32%	13.66%
BIRLAMONEY	63 Neutral	₹6.51B	14.15	―	―	-6.37%	-24.10%
VLSFINANCE	61 Neutral	₹6.98B	14.11	―	0.52%	-98.34%	-106.71%
THEINVEST	59 Neutral	₹4.97B	13.06	―	―	-9.21%	-48.40%
ARIHANTCAP	58 Neutral	₹7.59B	45.88	―	0.53%	-27.65%	-44.96%

V L S Finance Limited Corporate Events

VLS Finance Clears Postal Ballot Resolutions; Director-Related Item Withdrawn After Resignation

VLS Finance Limited has announced the results of a postal ballot conducted via remote e-voting between December 31, 2025, and January 29, 2026, to seek shareholder approval on several resolutions. The company reported that all resolutions put to vote were passed with the requisite majority, except one agenda item related to the appointment of Shri Gaurav Goel as an Independent Director, which was withdrawn following his resignation on January 19, 2026 due to preoccupations and personal commitments. The scrutinizer’s report and detailed voting results have been filed with the stock exchanges and published on the company’s website, underscoring regulatory compliance and providing transparency to its more than 28,000 shareholders.

VLS Finance Independent Director Gaurav Goel Resigns from Board

VLS Finance Limited has announced that Independent Director Shri Gaurav Goel has resigned from the board, effective 19 January 2026, citing pre‑occupation and other personal commitments, with no additional reasons disclosed. His departure entails cessation from all board positions within the company, and the move has been formally communicated to the stock exchanges in line with SEBI’s disclosure regulations, signaling a change in the company’s board composition that stakeholders may monitor for subsequent governance or board restructuring developments.

VLS Finance Files Post-Buyback Public Announcement With Exchanges

VLS Finance Limited has notified the stock exchanges that it has issued a post-buyback public announcement following the completion of its share buyback, in line with SEBI’s listing and buyback regulations. The announcement, published in national English and Hindi newspapers and made available on the company’s website, formalizes the closure of the buyback process, signaling a completed capital management exercise that may affect the company’s equity structure and could be relevant for shareholders tracking changes in outstanding share capital and liquidity.

VLS Finance Confirms Dispatch and Publication of Postal Ballot Notice

VLS Finance Limited has announced that it has completed the dispatch of its Postal Ballot Notice to shareholders and has published the requisite confirmation advertisements in the Financial Express and Jansatta on 31 December 2025, with the documents also made available on the company’s website. This step indicates the company is formally initiating a shareholder approval process via postal ballot, underscoring its adherence to regulatory disclosure norms and engagement with investors across the exchanges where it is listed.

VLS Finance Corrects Buyback Payment Date

VLS Finance Limited has issued a corrigendum regarding a previous communication about the buyback of equity shares. The correction pertains to the date of payment to eligible shareholders, which was mistakenly listed as January 1, 2025, instead of the correct date, January 1, 2026. This update ensures clarity for stakeholders involved in the buyback process.