Vindhya Telelinks Limited

Industrials — Engineering & Construction · NSE

₹2,874.90+₹40.10 (+1.41%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vindhya Telelinks Limited engages in the manufacture and sale of cables in India. The company operates in two segments, Cable Manufacturing; and Engineering, Procurement, and Construction (EPC).

IndustryEngineering & Construction

SectorIndustrials

Employees391

Annual revenue₹3,571 Cr

How does it make money?

Turns over ₹3,571 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 391 employees supports ₹9.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

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 +23% while net margin moved -4% 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+23%

Margin effect-4%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.3% — barely ahead of inflation
✗ Profit CAGR of only 5.9%
✗ Latest-year revenue growth of -20.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

53/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.0x

3Y Median

10.4x

40 monthly readings · mean 10.9x · range 5.4x–19.8x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 44% above its 3y median of 10.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 50% below the peer median of 30.1x.

vs. its own history

Expensive

10.4x median over 40 months · +44%

vs. sector peers

Cheap

30.1x median of 3 peers · -50%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.6x

PEG

2.54

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 11.2% to 12.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 115% over 3 years, from ₹668 Cr to ₹1,435 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 103% against revenue up 23% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹208 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.2% to 12.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 50% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 103% against revenue up 23%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 44% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 7.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹208 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 7.3% CAGR
Latest reported year was -20.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 11 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
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹3,407 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.81x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹191.47

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-20.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

76.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.21%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹208 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.8%

Average

Average margins

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.91

Market-like

Moves roughly in line with the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

2774.6 / 2643.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,891 Cr	₹4,079 Cr	₹4,035 Cr	₹3,571 Cr	+7.3%
EBITDA	₹324 Cr	₹477 Cr	₹396 Cr	₹454 Cr	+11.9%
EBITDA Margin	11.2%	11.7%	9.8%	12.7%	—
PAT (Net Profit)	₹185 Cr	₹283 Cr	₹203 Cr	₹220 Cr	+5.9%
EPS	₹156.37	₹238.54	₹171.16	₹185.79	+5.9%
ROE	5.4%	7.1%	5.0%	5.2%	—
ROCE	6.8%	8.8%	7.0%	7.9%	—
Total Debt	₹668 Cr	₹493 Cr	₹1,168 Cr	₹1,435 Cr	+29.0%
Free Cash Flow	-₹0 Cr	₹391 Cr	-₹607 Cr	-₹208 Cr	—

🟢 Revenue has grown at 7.3% a year over 3 years.

🟢 EBITDA has grown at 11.9% a year over 3 years.

🟢 EBITDA Margin has risen from 11.2% to 12.7% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 5.9% a year over 3 years.

🟢 EPS has grown at 5.9% a year over 3 years.

🟡 ROE has held roughly flat at 5.2% over 3 years.

🟢 ROCE has risen from 6.8% to 7.9% over 3 years (+1.1 pts).

🔴 Total Debt has grown at 29.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,363 Cr

Total Liabilities

₹4,157 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹160 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

9.2%

Insider Holding

57.5%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

27 Jul 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

Vindhya Telelinks vs Nifty 50: 1Y Return +112.99% vs -11.35%

Univest, 13 Oct

Vindhya Telelinks - Unique Picks: 10 stocks held by a single MF scheme in September; rally up to 225% in FY27 so far

The Economic Times, 13 Oct

Vindhya Telelinks consolidated net profit rises 22.66% in the June 2026 quarter

Business Standard, 08 AugResults

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

Vindhya Telelinks surges 58% after InvestingPro Fair Value signal By Investing.com

Investing.com India, 01 Jun

Vindhya Telelinks confirms no fresh encumbrance on Birla Cable shares in FY26

scanx.trade, 06 Jun

Vindhya Telelinks (VINDHYATEL.NS) Falls 6.96% to ₹2,617.7, Sliding Toward Key Support - RVOL Breakout

siam.in, 15 Sept

Watch Items

Revenue growth is negative (-20.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑