Vishnu Prakash R Punglia Limited

Industrials — Engineering & Construction · NSE

₹27.75+₹0.80 (+2.97%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vishnu Prakash R Punglia Limited engages in engineering, procurement, and construction of infrastructure projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees9,562

Annual revenue₹838 Cr

How does it make money?

Turns over ₹838 Cr a year. Of every ₹100 of sales, about ₹-18 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 9,562 employees supports ₹8.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹8.8 lakh

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 -15.7% 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 is the outlook?

1 analysts covering the stock expect revenue to grow about 22.0% and earnings to grow about 409.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.0%

Est. earnings growth+409.1%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved -331% 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-28%

Margin effect-331%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 52.7 points over the period

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.8% to -23.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.7% to -15.7% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 6 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 159% over 3 years, from ₹250 Cr to ₹650 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹150 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 22.5 points, from 13.1% to -9.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 192% against revenue up -28% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 150% against revenue up -28% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.4x to -1.7x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.1% to -9.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 192% against revenue up -28%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 28.8% to -23.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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%✓ -9.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -1.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹104 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -15.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 12 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
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹347 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-15.76

Loss-making

Negative earnings per share — the business is losing money

ROE

-23.8%

Weak

Weak capital efficiency

ROCE

-15.7%

Weak

Low return on total capital employed

Debt/Equity

1.03x

Moderate

Moderate leverage

Revenue Growth (YoY)

-50.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-356.2%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹104 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

8.2x

Operating Margin

-28.6%

Weak

Thin margins leave little room for error

Net Margin

-27.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.90

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

29.8 / 32.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,168 Cr	₹1,467 Cr	₹1,237 Cr	₹838 Cr	-10.5%
EBITDA	₹154 Cr	₹210 Cr	₹153 Cr	-₹78 Cr	—
EBITDA Margin	13.1%	14.3%	12.4%	-9.4%	—
PAT (Net Profit)	₹91 Cr	₹122 Cr	₹59 Cr	-₹150 Cr	—
EPS	₹7.27	₹10.95	₹4.7	₹-12.04	—
ROE	28.8%	16.9%	7.5%	-23.8%	—
ROCE	38.7%	26.5%	15.9%	-15.7%	—
Total Debt	₹250 Cr	₹396 Cr	₹707 Cr	₹650 Cr	+37.4%
Free Cash Flow	-₹74 Cr	-₹369 Cr	-₹283 Cr	₹104 Cr	—

🔴 Revenue has shrunk at 10.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹154 Cr to -₹78 Cr.

🔴 EBITDA Margin has fallen from 13.1% to -9.4% over 3 years (-22.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹91 Cr to -₹150 Cr.

🔴 EPS has turned negative, from ₹7.27 to ₹-12.04.

🔴 ROE has fallen from 28.8% to -23.8% over 3 years (-52.7 pts).

🔴 ROCE has fallen from 38.7% to -15.7% over 3 years (-54.4 pts).

🔴 Total Debt has grown at 37.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹74 Cr to ₹104 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,880 Cr

Total Liabilities

₹1,250 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹142 Cr

Capex

-₹38 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

32.2%

Analyst Consensus

Recommendations

0 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹31

+11.7% vs CMP

Target Range

₹31 – ₹31

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

2 mixed4 general

Vishnu Prakash R Punglia Share Price Rise 0.66% After Rs 285 Crore Promoter Capital Infusion

HDFC Sky, 10 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

VPRPL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Vishnu Prakash R Punglia board approves ₹1 billion fully convertible warrants

scanx.trade, 14 Oct

Vishnu Prakash R Punglia (VPRPL.NS) Slips 3.86% to ₹29.89 as ₹28.4 Support Comes Into Focus - Double Top

https://www.siam.in/, 29 Sept

Vishnu Prakash R Punglia Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Vishnu Prakash R Punglia (NSEI:VPRPL) Stock Price

Simply Wall Street, 07 Jun

Watch Items

Revenue growth is negative (-50.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 6 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑