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Check Before You Invest : Veto Switchgears And Cables Ltd

BSE: 539331 NSE: VETO ISIN: INE918N01018
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Veto Switchgears And Cables Ltd belong to?
Veto Switchgears And Cables Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Veto Switchgears And Cables Ltd a good quality company?
Veto Switchgears And Cables Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is Veto Switchgears And Cables Ltd undervalued or overvalued?
Veto Switchgears And Cables Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Veto Switchgears And Cables Ltd a good buy now?
Veto Switchgears And Cables Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd revenue growth is 0.1% for FY-2025, which is below its 5-year CAGR of 14.87%, indicating slower growth.
Q.2 Return on capital employed (ROCE) of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Return on capital employed is 11.19% for FY-2025, which is below its 5-year historical median of 12.09%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.
Q.3 Return on Asset of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Return on Asset is 6.93%, which is above its 5-year historical median of 6.56%, indicating improved asset utilization efficiency.
Q.4 Return on Equity (ROE) of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Return on equity is 8.51% for FY-2025, which is in line with its 5-year historical median of 8.51%, indicating the business is making similar use of its shareholders capital.
Q.5 Cash conversion cycle of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Cash conversion cycle is 248 days, in line with its 5-year historical median of 252 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover 0.95 0.93
ROE 8.51 8.51
ROCE 11.19 12.09
Cash Conversion Cycle 248 days 252 days
Q.6 Gross Profit margin of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2025, which is below its 5-year median of 11.5%, indicating decreasing margins.
Q.7 Operating Profit Margin of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.55% for FY-2025, which is below its 5-year median of 11.27% indicating decreasing margins.
Q.8 Net Profit Margin of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Net Profit Margin is 7.26% for FY-2025, is in line with with its 5-year median of 7.26%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin 10.9 11.5
Operating Profit Margin 10.55 11.27
Net Profit Margin 7.26 7.26
Q.9 Debt to Equity ratio of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Debt-to-Equity ratio is 0.09, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Veto Switchgears And Cables Ltd?
Veto Switchgears And Cables Ltd Debt to cash flow from operations is 1.52, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Veto Switchgears And Cables Ltd?
Promoters hold 45.06% of the Veto Switchgears And Cables Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Veto Switchgears And Cables Ltd vs industry peers?
Veto Switchgears And Cables Ltd revenue CAGR is 14.87%, compared to the industry median CAGR of 16.95%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 0.1 17
Gross Profit Growth 6.5 27.6
Operating Profit Growth 3.2 NAN
Net Profit Growth 22.2 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.95 1.06
ROE 8.51 10.12
ROCE 11.19 13.84
Cash Conversion Cycle (days) 247.96 104

Valuation & price assessment

Q.1 Stock return of Veto Switchgears And Cables Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
1.3% -3.8% 5.4% 4.4%
Q.3 Valuation ratios of Veto Switchgears And Cables Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 8.65 11.63 37.99
Price to Book 0.73 0.91 3.99
Price to Sales 0.61 0.77 2.75
EV to EBITDA 5.87 7.08 18.70

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