V R Infraspace Limited

Sector n/a · NSE

₹180.00−₹0.20 (−0.11%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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, 6:53 pm

Understanding the Business

The 60-second version of V R Infraspace 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 ₹46 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.8% 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 +150% while net margin moved -36% 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+150%

Margin effect-36%

DalalBaazaar Score

56/ 100

Moderate

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

61/ 100

Average

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

Valuation

60/ 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.

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

14.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 17.3% to 27.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 20.1% to 9.7% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 226% over 3 years, from ₹10 Cr to ₹32 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 456% against revenue up 150% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 17.3% to 27.6%. 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?

Returns on shareholder capital are falling
ROE has dropped from 20.1% to 9.7%. 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.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 27% a year✓ 35.7% CAGR
Latest reported year was 81.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 7 neutral · 1 weak

Market Cap

₹160 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

9.7%

Moderate

Moderate capital efficiency

ROCE

16.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

81.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

94.6%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

-23.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

98.1 / 113.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18 Cr	₹19 Cr	₹25 Cr	₹46 Cr	+35.7%
EBITDA	₹3 Cr	₹4 Cr	₹6 Cr	₹13 Cr	+58.4%
EBITDA Margin	17.3%	19.9%	22.9%	27.6%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹4 Cr	+17.1%
EPS	₹2.74	₹3.58	₹2.27	—	—
ROE	20.1%	6.9%	5.5%	9.7%	—
ROCE	15.0%	8.8%	9.7%	16.8%	—
Total Debt	₹10 Cr	₹5 Cr	₹17 Cr	₹32 Cr	+48.3%
Free Cash Flow	₹2 Cr	-₹3 Cr	-₹27 Cr	-₹11 Cr	—

🟢 Revenue has grown at 35.7% a year over 3 years.

🟢 EBITDA has grown at 58.4% a year over 3 years.

🟢 EBITDA Margin has risen from 17.3% to 27.6% over 3 years (+10.2 pts).

🟢 PAT (Net Profit) has grown at 17.1% a year over 3 years.

🔴 ROE has fallen from 20.1% to 9.7% over 3 years (-10.4 pts).

🟢 ROCE has risen from 15.0% to 16.8% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 48.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹65 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹10 Cr

Recent News

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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

StrongBusiness Quality · Growth

MiddlingFinancial Health · Valuation

WeakProfitability · 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. 3 high-severity red flags sit above this conclusion and should be read first.

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