🔌 At a Glance
Vdeal System Ltd, a newly listed SME company in the electrical automation space, has quietly powered up from ₹0.2 Cr profit in FY21 to ₹4 Cr in FY25 — riding on its niche in control panels, IoT integration, and industrial automation. But rising inventory (410 days!) and a working capital cycle pushing ~348 days is a giant circuit breaker to watch.
1. 🎣 Hook – “Industrial IoT ke Shahzada ya Working Capital ke Diwana?”
When a ₹78 Cr company says it’s into electrical panels, IoT, and automation, you imagine a tech-savvy transformer of industries.
Vdeal System wants to be that. But the books show a different wiring—massive working capital blockage, debtors taking 6 months to pay, and yet… they keep bagging orders like it’s Diwali season.
So, the question: Will the growth pay off? Or is this just electrifying revenue, but no current in the cash flow?
2. 🏭 WTF Do They Even Do?
Vdeal manufactures:
- LT & HT electrical control panels
- IoT & industrial automation systems
- SCADA-based instrumentation panels
They also provide:
- Integration + commissioning services
- Project execution for electrical infrastructure setups
- System integrator work with industrial and infra players
🏗️ Clients: Likely EPC firms, state infra contractors, automation buyers
💡 Positioning: Panel manufacturer + IoT enabler (but no SaaS layer yet)
3. 💰 Financials – Revenue, Profit, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 16.6 | 19.0 | 24.4 | 26.2 | 33.6 |
| EBITDA (₹ Cr) | 1.3 | 1.5 | 2.5 | 5.5 | 6.9 |
| Net Profit (₹ Cr) | 0.23 | 0.23 | 1.10 | 3.11 | 3.99 |
| ROCE (%) | — | 12.4% | 25.1% | 42.3% | 25.6% |
| ROE (%) | — | — | 35% | 25% | 25% |
🔥 3Y PAT CAGR = 159%
🚀 Revenue Growth = 21% CAGR
📈 OPM improved from 8% → 20%
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹161
- Market Cap: ₹78.5 Cr
- P/E: 19.7x
- Book Value: ₹52.4 → P/B = 3.06x
Compared to peers:
| Company | P/E | ROE | ROCE |
|---|---|---|---|
| Apar Inds | 42.8x | 19.6% | 32.1% |
| Genus Power | 38.4x | 17.2% | 19.2% |
| Shilchar Tech | 41.3x | 52.8% | 71.1% |
| Vdeal | 19.7x | 25% | 25.6% ✅ |
📊 Verdict: Reasonable valuation for a small-cap with improving profitability. Could command higher multiple if working capital improves.
5. 🔥 What’s Cooking – Orders & Updates
🚚 Order Wins:
- Multiple contracts announced in June 2025 (June 12, 26, 28, 30)
- No value disclosed, but buzz is building
📃 FY25 audited results out → unmodified audit opinion
💸 IPO proceeds fully deployed as per prospectus
📈 1-Year Stock Movement: ₹100 → ₹204 (high) → ₹161 (current)
Market seems cautious post working capital data in FY25
6. 🧾 Balance Sheet – How Much Leverage, How Much Lag?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings | ₹6.2 Cr | ₹9.4 Cr | ₹10.6 Cr |
| Net Worth | ₹3.4 Cr | ₹6.3 Cr | ₹25.6 Cr |
| Total Liabilities | ₹15.4 Cr | ₹27.3 Cr | ₹48.9 Cr |
| D/E Ratio | ~1.8x | 1.5x | 0.41x ✅ |
⚠️ Borrowing is stable, but liabilities have ballooned 3x in 2 years
⚡ Fixed assets remain low → mostly working capital burn
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹1.12 Cr | –₹0.08 Cr | –₹0.94 Cr | ₹0.09 Cr |
| FY24 | ₹1.35 Cr | –₹3.63 Cr | ₹2.24 Cr | –₹0.04 Cr |
| FY25 | –₹13.73 Cr | –₹1.31 Cr | ₹15.28 Cr | ₹0.24 Cr |
🚨 CFO turned negative ₹13.73 Cr despite profits
Main reason? Receivables + Inventory = massive
8. 📉 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 25.6% ✅ |
| ROE | 25.0% ✅ |
| OPM | 20.6% ✅ |
| Debtor Days | 177 |
| Inventory Days | 410 😱 |
| Payables | 180 |
| Cash Conversion Cycle | 407.7 Days 😵 |
| Working Capital Days | 347.5 |
📉 Translation: 1 full year of sales = stuck in WC.
They’re making profits, but not getting cash in hand.
9. 📈 P&L Breakdown – Show Me the Money
FY25 Snapshot:
- Sales: ₹33.6 Cr
- EBITDA: ₹6.92 Cr
- PAT: ₹3.99 Cr
- PAT Margin: ~11.9%
- EPS: ₹8.16
👷 Decent margins for electrical panel biz
📦 But supply chain issues + WC stress makes scaling hard
10. 🥊 Peer Comparison – Who Else Is In The Box?
| Company | Sales (Cr) | PAT (Cr) | ROE | P/E | OPM |
|---|---|---|---|---|---|
| Genus Power | ₹2442 | ₹293 | 17% | 38x | 19% |
| Apar Inds | ₹18,581 | ₹821 | 19.6% | 42.8x | 8.3% |
| Shilchar | ₹623 | ₹146 | 52.8% | 41.3x | 29.6% |
| Vdeal | ₹33.6 | ₹3.99 | 25% | 19.7x | 20.6% ✅ |
Clearly tiny, but margin profile and ROE are on point.
11. 🧾 Misc – Promoter Holding & Gossip
| Holder | Sep ’24 | Mar ’25 |
|---|---|---|
| Promoter | 66.97% | 66.97% |
| DIIs | 1.4% → | 0.32% |
| Public | 31.6% → | 32.7% |
| Shareholders | 721 → | 676 |
📉 DII exit? Retail is holding steady
✅ No pledging, stable promoter grip
12. 🎯 Fair Value Range – Let’s Do The Circuit Math
Assume FY26 PAT = ₹6 Cr (50% growth)
Apply P/E range = 18x–24x
→ Market Cap = ₹108 – ₹144 Cr
→ Shares = ~0.49 Cr
→ FV/Share = ₹220 – ₹292
🟢 CMP = ₹161
🎯 Upside = 37% to 81%
🚨 BUT ONLY if working capital cleanup happens
🧠 EduInvesting Verdict™
Vdeal is like a beautifully wired control panel—with loose wires behind.
- Margins ✅
- Order wins ✅
- ROE/ROCE ✅
- But cash flow? ❌
- WC Cycle? 🔥
It’s got spark, but the meter is ticking dangerously.
Until they plug the WC leak, it’s a “watch and test”, not a full switch-on.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: Vdeal System Ltd, SME Panel Manufacturer, Electrical Equipment Stocks, Industrial Automation India, Working Capital Stress Stocks, FY25 Results Vdeal, EduInvesting SME Analysis, ROCE vs Cash Flow, NSE SME Growth Stocks
