Check Before You Invest : Vikran Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Vikran Engineering Ltd belong to?

Vikran Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Vikran Engineering Ltd a good quality company?

Vikran Engineering Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Vikran Engineering Ltd undervalued or overvalued?

Vikran Engineering Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Vikran Engineering Ltd a good buy now?

Vikran Engineering 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 Vikran Engineering Ltd?

Vikran Engineering Ltd revenue growth is 16.5% for FY-2025, which is below its 3-year CAGR of 24.53%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vikran Engineering Ltd?

Vikran Engineering Ltd Return on capital employed is 27.21% for FY-2025, which is below its 3-year historical median of 33.41%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Vikran Engineering Ltd?

Vikran Engineering Ltd Return on Asset is 6.5%, which is below its 3-year historical median of 6.96%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vikran Engineering Ltd?

Vikran Engineering Ltd Return on equity is 20.5% for FY-2025, which is below its 3-year historical median of 35.43%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vikran Engineering Ltd?

Vikran Engineering Ltd Cash conversion cycle is 43 days, in line with its 3-year historical median of 43 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.76	0.85
ROE	20.5	35.43
ROCE	27.21	33.41
Cash Conversion Cycle	43 days	43 days

Q.6 Gross Profit margin of Vikran Engineering Ltd?

Vikran Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.4% for FY-2025, which is in line with its 3-year median of 12.4%, indicating stable margins.

Q.7 Operating Profit Margin of Vikran Engineering Ltd?

Vikran Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.67% for FY-2025, which is in line with its 3-year median of 17.08% indicating stable margins.

Q.8 Net Profit Margin of Vikran Engineering Ltd?

Vikran Engineering Ltd Net Profit Margin is 8.5% for FY-2025, is in line with with its 3-year median of 8.5%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	12.4	12.4
Operating Profit Margin	17.67	17.08
Net Profit Margin	8.5	8.5

Q.9 Debt to Equity ratio of Vikran Engineering Ltd?

Vikran Engineering Ltd Debt-to-Equity ratio is 0.58, which is above with the industry average of 0.41, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vikran Engineering Ltd?

Vikran Engineering Ltd Debt to cash flow from operations is -2.11, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vikran Engineering Ltd?

Promoters hold 56.27% of the Vikran Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vikran Engineering Ltd vs industry peers?

Vikran Engineering Ltd revenue CAGR is 24.53%, compared to the industry median CAGR of 19.09%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	16.5	19.1
Gross Profit Growth	5.6	38.2
Operating Profit Growth	20.9	32.6
Net Profit Growth	4	52.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.76	0.85
ROE	20.5	15
ROCE	27.21	15.97
Cash Conversion Cycle (days)	43.07	56

Valuation & price assessment

Q.1 Stock return of Vikran Engineering Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Vikran Engineering Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	23.91	30.08	22.41
Price to Book	1.57	1.99	1.92
Price to Sales	2.03	2.56	1.67
EV to EBITDA	9.51	12.36	12.09

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