🔍 At a Glance (Goal Completion)
Vilas Transcore Ltd has gone from ₹4 Cr profit in FY20 to ₹34 Cr in FY25 — an 8.5x jump that would make even Iron Man upgrade his suit. This SME-listed company is riding the EV and infra electrification wave, manufacturing essential transformer components for the power grid. But with rising working capital days and a P/E of 43+, is the spark sustainable?
🏭 About the Company
- Industry: Capital Goods – Industrial Products
- Focus: Power Distribution and Transmission components
- Product Range: Transformer laminations, radiators, cores, generators
- SME Listed on NSE: Ticker – VILAS
Vilas is basically the guy in the transformer universe who doesn’t fight but makes Optimus Prime’s liver. Quietly essential.
👔 Key Managerial Highlights
- CEO is still active behind the scenes, but recently…
- CFO Vipulkumar Patel resigned in May 2025 — citing “other commitments”. (Read: probably jumped before working capital numbers electrocuted his bonus.)
- Board reshuffle and expansion into nanocrystalline core production announced. ⚛️
💰 Financial Highlights (FY20 to FY25)
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 162 | 133 | 233 | 283 | 310 | 353 |
| Net Profit (₹ Cr) | 4 | 5 | 18 | 20 | 23 | 34 |
| EPS (₹) | 12.0 | 17.4 | 59.7 | 67.3 | 12.8 | 13.9 |
| Operating Margin (%) | 4% | 7% | 11% | 10% | 10% | 13% |
| ROCE (%) | – | 8% | 23% | 22% | 21% | 22% |
| Borrowings (₹ Cr) | 8 | 8 | 3 | 5 | 0 | 11 |
| Reserves (₹ Cr) | 93 | 97 | 115 | 134 | 141 | 264 |
| Working Capital Days | 116 | 111 | 78 | 77 | 42 | 123 |
📈 Trendy Stuff
- Sales CAGR (5Y): 17%
- Profit CAGR (5Y): 57% 💥
- Stock Return (1Y): +152% 🚀 (No cap. Or actually… maybe too much capex.)
💡 What Changed in FY25?
- Sales jumped to ₹353 Cr (↑14% YoY)
- Net profit rose to ₹34 Cr (↑48% YoY)
- CWIP shot up to ₹38 Cr — capacity expansion is real
- Cash from Operations: -₹35 Cr 😬 (was +₹49 Cr in FY24)
- Working capital days exploded from 42 → 123 🧨
- Introduced nanocrystalline cores + transformer radiators
- Targeting 36,000 MT annual capacity by July 2025
📦 Business Model Insights
- B2B supplier to transformer OEMs, utilities, and infra developers
- Revenue concentrated in power infra capex cycles
- Future growth linked with:
- Revamped DISCOMs
- Smart Grid rollout
- EV charging infra
- Railway electrification
Basically, wherever India adds volts, Vilas wants volts of revenue.
🧮 Forward-Looking Fair Value (FY26)
Assumptions:
- FY26E Profit: ₹45–50 Cr
- P/E range: 30–35x (reasonable for SME infra manufacturing)
👉 FV Range: ₹1,350 – ₹1,750
CMP is ₹607 — so if the circuits don’t trip, this still has voltage left.
🧠 EduInvesting Take
Vilas is that underrated cousin who quietly got into IIT, then launched his own transformer startup. The company is scaling intelligently, doubling capacity, and riding the infra & electrification trend.
But some concerns:
- No dividend in 6 years — sab paisa CWIP mein gaya
- Cash flow mismatch in FY25
- Working capital ballooned — red flag in disguise?
Is it multibagger material? Possibly.
Is it overheating? Also, possibly.
We suggest watching this like you watch a high-tension wire: with respect, distance, and a grounding rod.
⚠️ Risks & Red Flags
- CFO exit during growth phase
- SME stock with low liquidity risk
- Working capital cycles may stretch further
- Very high EPS in FY22/23 due to low base and bonus issue
- ROE needs to cross 18–20% sustainably to justify P/E > 40
📦 What’s Next?
- New production lines begin July 2025
- Nanocrystalline core adoption to ramp up
- Export potential for energy-efficient transformer parts
Author: Prashant Marathe
Date: June 10, 2025
Tags: Vilas Transcore, SME Stocks, Transformer Stocks, Infra Boom, NSE SME, FY25 Results
