1. At a Glance
Valiant Communications Ltd (VCL) builds hardcore communication and cybersecurity systems for power grids, utilities, and defense agencies—and exports to 110+ countries. It’s growing faster than your 5G bill shock, with margins rising and mega orders stacking. Just one problem: it still trades like a microcap ninja in stealth mode.
2. Introduction with Hook
Imagine a company quietly guarding the world’s utility grids from ransomware attacks while also shipping synchronization tech to 110 countries. And yet, not a single influencer on FinTwit is screaming about it.
- 5Y Profit CAGR: 111%
- OPM in FY25: 27.1%
- Latest Order: ₹37 Cr from Tejas Networks (GETCO project)
Valiant is what happens when an ISO-certified legacy company forgets how to throw a party — no dividends, no drama, just pure execution.
3. Business Model (WTF Do They Even Do?)
Valiant manufactures and exports:
- Communication, transmission & synchronization equipment
- Cybersecurity solutions for utility control systems
- Time synchronization & protection devices for power grids, oil & gas, and telecoms
- Resilient hardware/software to protect mission-critical infrastructure
Clientele: PowerGrid, ONGC, APTRANSCO, GETCO, and several international utilities.
Markets: 110+ countries.
Certifications: ISO 9001, 14001, 27001, 45001. API-level serious.
In short: it’s the invisible defense mechanism behind power utility networks.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹31.5 Cr | ₹46.3 Cr | ₹50.85 Cr |
| EBITDA | ₹4.3 Cr | ₹10.35 Cr | ₹13.78 Cr |
| Net Profit | ₹1.68 Cr | ₹6.21 Cr | ₹9.61 Cr |
| EPS | ₹2.33 | ₹8.14 | ₹12.60 |
3Y CAGR:
- Revenue: 57%
- PAT: 66%
- EBITDA margin expanded from 13% to 27.1%
From struggling mid-decade to record revenues in FY25, this chart is basically a hockey stick that went to IIT.
5. Valuation
| Method | FV Range |
|---|---|
| P/E (30x on FY25 EPS ₹12.60) | ₹360–₹420 |
| EV/EBITDA (20x FY25 EBITDA ₹13.78 Cr) | ₹400–₹470 |
| DCF (conservative 20% growth for 5Y) | ₹390–₹450 |
Current Price: ₹882
Book Value: ₹80.7
P/B: 10.9x
Valiant’s stock has priced in a lot. The next leg depends on FY26 orders, institutional entries, and real EPS surprises.
6. What’s Cooking – News, Triggers, Drama
2024-25 was Valiant’s prime-time debut:
- ₹37.5 Cr order from Tejas Networks (GETCO) — largest-ever order
- Multiple PowerGrid orders and PSU deals
- ONGC cyber-resilience project win
- Tejas JV clarification & order inflow clarity
Triggers Ahead:
- Rising global demand for grid cybersecurity
- Big infra budgets under ‘India Power Mission 2030’
- First FII + DII entries seen in FY24 (tiny but promising)
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹7.63 Cr |
| Reserves | ₹53.92 Cr |
| Debt | ₹2.06 Cr |
| Cash + Investments | ₹2.24 Cr |
| Total Assets | ₹71.89 Cr |
| Debt/Equity | 0.04x |
Interpretation: Basically debt-free. Room to scale without calling bankers. Also: cash flows now stable enough to fund growth internally.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹3.08 Cr | -₹4.30 Cr | ₹1.65 Cr | ₹0.42 Cr |
| FY24 | ₹3.08 Cr | -₹3.14 Cr | ₹12.55 Cr | ₹12.48 Cr |
| FY25 | ₹0.79 Cr | -₹14.67 Cr | -₹0.46 Cr | -₹14.35 Cr |
Big investing outflow in FY25 = infra buildout & capex. Not worrying yet, but CFO needs to bounce back soon.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 22.1% |
| ROE | 17.0% |
| OPM | 27.1% |
| EPS Growth | 55% |
| Interest Coverage | 65x |
| Cash Conversion Cycle | 400 days (Oof.) |
| Debtor Days | 141 |
Analysis: Great profitability, solid returns. But still working capital-heavy, mostly due to PSU payment cycles. Needs real-time follow-up.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹31.5 Cr | ₹4.32 Cr | ₹1.68 Cr | ₹2.33 |
| FY24 | ₹46.3 Cr | ₹10.35 Cr | ₹6.21 Cr | ₹8.14 |
| FY25 | ₹50.85 Cr | ₹13.78 Cr | ₹9.61 Cr | ₹12.60 |
From tiny profits to record EPS in 2 years. That’s not growth. That’s a glow-up.
11. Peer Comparison
| Company | P/E | ROE | OPM | Sales (FY25) | CMP/BV |
|---|---|---|---|---|---|
| Tejas Networks | 27.4 | 12.7% | 14.1% | ₹8,923 Cr | 3.18x |
| Optiemus Infra | 82.6 | 11.6% | 5.7% | ₹1,890 Cr | 7.9x |
| Sterlite Tech | N/A | -3.6% | 10.4% | ₹3,996 Cr | 2.5x |
| Valiant Comm | 70.0 | 17.0% | 27.1% | ₹50.85 Cr | 10.9x |
Valiant has the best margins but worst liquidity. It’s the most profitable company no fund manager owns (yet).
12. Miscellaneous – Shareholding, Promoters
| Detail | Value |
|---|---|
| Promoter Holding | 41.83% (down from 46.37%) |
| FII Holding | 0.16% |
| DII Holding | 0.60% |
| Public | 57.41% |
| Total Shareholders | 6,339 (up 2x in 1 year) |
Translation: Retail discovered it. Now all eyes on funds and a possible bonus/split to unlock liquidity.
13. EduInvesting Verdict™
Valiant Communications is not a meme stock. It’s an engineer’s fantasy: high margins, cyber-sec compliant, power grid essential, and exporting like it’s the 90s again.
But it trades like a forgotten PSU subcontractor. Why? Lack of dividend, tiny float, slow-moving promoter moves.
Yet, in the long run, the market values signal over noise — and Valiant’s signal is strong. If they keep order wins consistent and debtor days in check, this stock could go from ₹882 to meme-stock without ever needing to tweet.
Metadata
– Written by EduInvesting | July 14, 2025
– Tags: Cybersecurity, PowerGrid, Telecom Equipment, Valiant, Microcap, India Exports, Signal Transmission, Infra Tech, PSU Orders, GETCO, Smart Grid Solutions
