Vilas Transcore Limited

Sector n/a · NSE

₹490.70+₹17.70 (+3.74%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

The 60-second version of Vilas Transcore Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹461 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +63% while net margin moved +20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+63%

Margin effect+20%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

21.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 10.8% to 12.4% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 20.3% to 16.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 696% over 3 years, from ₹5 Cr to ₹39 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹41 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.8% to 12.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.7% CAGR
Latest reported year was 30.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹41 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,201 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

16.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

30.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹41 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

16.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

3.83

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

386.4 / 366.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹283 Cr	₹310 Cr	₹353 Cr	₹461 Cr	+17.7%
EBITDA	₹30 Cr	₹33 Cr	₹60 Cr	₹57 Cr	+23.2%
EBITDA Margin	10.8%	10.7%	17.0%	12.4%	—
PAT (Net Profit)	₹20 Cr	₹23 Cr	₹34 Cr	₹40 Cr	+25.1%
EPS	₹8.26	₹9.43	₹14.72	—	—
ROE	14.8%	14.5%	11.9%	12.0%	—
ROCE	20.3%	19.5%	17.3%	16.1%	—
Total Debt	₹5 Cr	₹0 Cr	₹11 Cr	₹39 Cr	+99.6%
Free Cash Flow	₹12 Cr	₹48 Cr	-₹80 Cr	-₹41 Cr	—

🟢 Revenue has grown at 17.7% a year over 3 years.

🟢 EBITDA has grown at 23.2% a year over 3 years.

🟢 EBITDA Margin has risen from 10.8% to 12.4% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 25.1% a year over 3 years.

🔴 ROE has fallen from 14.8% to 12.0% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 20.3% to 16.1% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 99.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹41 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹406 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹39 Cr

Recent News

1 positive1 mixed4 general

Here's Why We Think Vilas Transcore (NSE:VILAS) Is Well Worth Watching

Simply Wall Street, 14 May

VILAS TRANSCORE LIMITED Share Price

Upstox, 05 May

Vilas Transcore Q1 Results: Revenue rises 18% YoY to ₹132.4 crore

scanx.trade, 05 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 29 Sept

Vilas Transcore Ltd (NSE:VILAS) Q4 2026 Earnings Call Highlights: Strong Volume Growth Amid ...

Yahoo Finance, 19 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Vilas Transcore guides for 45-50% volume growth in FY27

scanx.trade, 12 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑