Author: Prashant Marathe
Date: May 22, 2025
Tags: Vilas Transcore, Power Sector, CRGO, FY25 Results, Electrical Equipment, Transformers, Smallcap Stocks, SME IPO

⚡ At a Glance

Vilas Transcore Ltd just lit up the markets.
The stock soared to a new high of ₹457.10, up 19.19% intraday and +73% from March levels — and it’s not just a random rally.

Why? Because they dropped FY25 results with:

• 📈 27% Revenue Growth
• 🔥 70% EBITDA Growth
• 💰 PAT: ₹342 Cr (up 67% YoY)
• 💎 Gross Margin: 23.3%
• 🏭 Capacity Expansion from IPO money + new product lines

This isn’t just a transformer parts company — this is an energy transmission enabler in the middle of India’s biggest grid revamp.

🏢 About the Company

• Founded: 1996
• HQ: Vadodara, Gujarat
• Business: Manufactures critical transformer components (CRGO laminations, toroidal cores, radiators)
• Client List: Voltamp Transformers, Electrotherm, Shilchar Technologies
• Promoter Holding: 73.2%
• Credit Rating: ICRA A- (Stable)

With nearly 30 years of domain experience, Vilas is at the heart of India’s electrification drive.

🧑‍💼 Key Leadership

• Nilesh Patel – Founder & MD with 27+ years in transformer engineering
• Vipul Patel – Director (Commerce + Education background)
• Girishbhai Mazmudar (CFO) – CA with 19 years of finance experience
• ✅ Stable leadership with engineering + execution background

📊 FY25 Financial Performance (Explosive Growth)

🏗️ What’s Powering This Rally?

✅ 1. CAPEX Mode Activated

• IPO in June 2024 raised ₹95.25 Cr
• Deployed into expanding:
  • CRGO Lamination to 36,000 MTPA
  • Radiator capacity to 7,200 MTPA
  • Nanocrystalline core capacity (next-gen tech)

✅ 2. FY25 Capacity Utilization = 100%

• Production hit 12,069 MT
• New units now coming online → FY26 will reflect even higher numbers

✅ 3. 3x Capacity Expansion

• Commercial production at new Greenfield Vadodara plant to begin soon
• Company aiming for 60–70% topline growth in FY26
• This ain’t a dream — it’s an assembly line in action.

🔋 Sectoral Tailwinds: Perfect Timing

• ₹17 Lakh Cr investment lined up for power sector in next 5–7 years
• FY26 Budget increased power sector allocation by 30%
• Demand for transformers, transmission infra, and smart grid components booming
• 81 coal-based units to be replaced with renewable integration
• Companies like Vilas supply components needed across every link of the grid

📈 Fair Value Estimate

• PAT FY25 = ₹34.2 Cr
• Shares Outstanding = 2.45 Cr
• EPS = ₹14.58
• CMP = ₹457 → P/E = ~31

Let’s assume FY26 PAT of ₹55 Cr (60% growth):

• EPS FY26E = ₹22.44
• At 35x PE → Target Price = ₹785
• At 30x PE → Target = ₹673

So yes — ₹457 may not be cheap, but it may still be early.

🧠 EduInvesting Take

This isn’t a story of a stock going up 20% in a day.
This is a story of a company that:

• Delivered clean, audited numbers
• Has zero debt and expanding margins
• Is investing IPO money exactly where it matters
• Is embedded in India’s power transmission ecosystem

If this were listed on the mainboard, every analyst would be screaming “BUY”.

But since it’s a quiet SME, only smart money is buying.

⚠️ Risks

• Capacity expansion risk (execution delays)
• Power sector slowdown (unlikely, but still)
• SME volatility (thin volumes, circuit limits)
• High valuation → needs delivery in FY26

🔥 Final Verdict

Vilas Transcore is no longer “just” a CRGO coil company.

It’s a power infra tech player.

From ₹280 in March to ₹457 now — and if FY26 goes as planned,

₹700 isn’t a fantasy — it’s a transformer away.