DSIJ Mindshare

Talking about the financials, Vascon Engineers has a market cap of Rs 1,346 crore. The company reported amazing numbers in quarterly results (Q1FY24) and annual results (FY23). As of June 30, 2023, the company order book stands at Rs 1,980 crore (Forming a healthy order book of 3.02x FY23 EPC revenues).

According to the quarterly results, net sales increased by 70.84 per cent to Rs 5,003 crore in Q1FY24 over Q1FY23. The company reported a net loss of Rs 344 crore in Q1FY24 compared to a net loss of Rs 188 crore in Q1FY24. In FY23, the net sales increased by 10.16 per cent to Rs 23,365 crore and net profit increased by 7.2 per cent to Rs 477 crore compared to FY22.

At the closing bell, shares of the company were trading at Rs 613.95 per share, up 3.10 per cent.

The company has a strong track record of profit growth, with a CAGR of 37.2 per cent over the past 5 years. It is also debt-free and has a good ROE (27.90 per cent) & ROCE (37.30 per cent) and dividend payout (48.60 per cent), which are all signs of a healthy business. Additionally, the stock is trading at 0.01 times its book value of Rs 178.

The company is operating through its subsidiaries. The company provides loans to SMEs, affordable housing finance, health insurance and retail broking. REL’s subsidiaries service over 11 lakh clients from over 1,275 locations having a presence in more than 400 cities. The company has a market cap of over Rs 7,000 crore with a 5-year stock price CAGR of 35 per cent.