At a glance:
Viviana Power Tech Ltd (VPTL), a once-ignored SME stock, is now pulsing with high-voltage momentum. FY25 revenue jumped 3x, profits surged 202%, and the order book is buzzing with government-backed transmission projects. But with a P/E near 41 and debt creeping in, is this just startup adrenaline or a real infra marathon?
1. 🧾 About the Company
Incorporated in 2014, Viviana Power Tech Ltd is a Gujarat-based EPC firm operating in the power transmission, substation installation, and maintenance space. It works across turnkey electrical projects — from supply to commissioning — and caters to:
- State Power Utilities
- Renewable Energy Developers
- Private Industrial Clients
⚡ Recent sectors of action:
- 66kV/132kV transmission lines
- Kisan Suryoday Yojana projects
- Petrochemical utility contracts (e.g., Mundra Petrochem Ltd)
2. 🧑🏭 Key Managerial Personnel
- Mihir Patel – Managing Director
- Chirag Dholakia – CFO
- Strategic focus: aggressive bidding + lean execution + SME agility
🛠️ The company raised ₹222.5 Cr via preferential issue recently and confirmed zero deviation in fund use — a rarity in SME EPC land.
3. 📊 5-Year Financials (FY22–FY25)
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 33 | 36 | 66 | 219 |
| EBITDA (₹ Cr) | 5 | 5 | 12 | 32 |
| EBITDA Margin (%) | 14% | 15% | 18% | 15% |
| Net Profit (₹ Cr) | 3 | 3 | 7 | 20 |
| EPS (₹) | 121.74 | 5.21 | 10.97 | 31.51 |
| ROCE (%) | — | 34% | 34% | 42.5% |
| ROE (%) | — | — | — | 46.6% |
🚀 3-Year Revenue CAGR: 89%
🔥 TTM PAT Growth: 202%
4. 💼 Balance Sheet & Cash Flows
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital (₹ Cr) | 6 | 6 | 6 |
| Reserves (₹ Cr) | 12 | 19 | 54 |
| Borrowings (₹ Cr) | 10 | 17 | 51 |
| Total Liabilities (₹ Cr) | 34 | 52 | 214 |
| Fixed Assets (₹ Cr) | 1 | 1 | 5 |
| Cash from Ops (₹ Cr) | -11 | -3 | -14 |
⚠️ Red Flag: Despite rising profits, operating cash flow is negative for 3 years. Working capital is stretched.
5. 📈 Latest Contracts & Order Book
📝 Recent highlights (June 2025):
- L1 in 6 turnkey contracts under Kisan Suryoday Yojana
- ₹3.93 Cr order from Mundra Petrochem Ltd
- Confirmed ₹8.08 Cr corporate guarantee for a subsidiary (to HDFC)
🧾 FY25 revenue of ₹219 Cr came from explosive EPC execution across Gujarat and West India. High-margin orders are now flowing from renewable integration jobs.
6. ⚙️ Business Model: Why It Works
- 🎯 Government EPC model — minimal marketing spend, projects won via tenders
- 🛠️ Full stack electrical EPC — reduces dependency on subcontractors
- 📦 Asset-light — less capex-heavy than infra peers
- 🧾 SME agility — quicker mobilization, lean teams, high ROCE
7. 🧮 EduInvesting Fair Value Estimate (FV Range)
Assumptions:
- FY26 PAT: ₹35 Cr (75% YoY growth)
- PE range: 25–35x (discounted from current 41x)
- FV Equity Value: ₹875 Cr – ₹1,225 Cr
- Shares Outstanding: 63 lakh
➡️ FV Range: ₹1,390 – ₹1,950
📍 CMP: ₹1,289
🧠 Verdict: Slightly undervalued if FY26 trajectory sustains, but not a margin-of-safety buy.
8. 🚨 Risks & Red Flags
- 💵 Cash Flow Issues: -₹14 Cr in operating cash despite ₹20 Cr PAT
- 🧾 Receivables: Debtor days at 207 — high even by infra standards
- 🧯 High Promoter Selling: Stake dropped 3.1% in last quarter
- 🧨 Valuation Stress: P/B at 13.4x and P/E 41x — no room for execution slip
9. 💡 Why It Stands Out
✅ 3x revenue growth in one year
✅ High ROE/ROCE combo with EPC capabilities
✅ Fast-growing SME with government order book + renewables push
✅ Strong positioning for sub-132kV infra upgrades across India
🧠 EduInvesting Verdict
Viviana Power is like the young prodigy in a class full of PSU uncles.
It’s loud, ambitious, efficient — but needs to submit its homework on time (aka cash flow discipline).
If FY26 sustains 30%+ growth and cash flow improves, this could be the KEC of tomorrow. Until then, it’s a high-risk, high-juice energy bet for bold portfolios.
Tags: Viviana Power Tech, EPC Stocks India, SME Multibagger, FY25 Results, Infra Stocks, Power Transmission, Gujarat EPC, EduInvesting
Author: Prashant Marathe
Date: 12 June 2025
