VSF Projects Limited

Industrials — Engineering & Construction · BSE

₹31.10−₹1.50 (−4.60%)

DalalBaazaar Score

41 / 100

🟡 Moderate

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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

VSF Projects Limited engages in the construction and infrastructure development and execution business in India. The company provides engineering and construction services for projects in power, transportation, water, and industrial sectors.

IndustryEngineering & Construction

SectorIndustrials

Employees6

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of -0.2% 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.

ROCE-0.2%

ROE-0.4%

Peer median ROE14.1%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

40/ 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

P/E (Trailing)

Not meaningful

P/B

0.52x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 342% over 3 years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 467% over 3 years — worth checking what it funded.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 467% over 3 years, from ₹15 Cr to ₹85 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -5.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 78% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

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.
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

1Interest cover stays above 3x✗ -5.3x
How much operating profit can fall before interest stops being comfortably covered.
2Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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)
✗ 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

2 good · 4 neutral · 5 weak

Market Cap

₹51 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

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.28

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.4%

Weak

Weak capital efficiency

ROCE

-0.2%

Weak

Low return on total capital employed

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-47.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹31.1

Operating Margin

-217.4%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

34.2 / 32.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
PAT (Net Profit)	₹0 Cr	₹35 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹0.01	₹53.74	₹-0.23	₹-0.26	—
ROE	0.4%	70.4%	-0.3%	-0.4%	—
ROCE	0.2%	43.2%	-0.2%	-0.2%	—
Total Debt	₹15 Cr	₹32 Cr	₹60 Cr	₹85 Cr	+78.3%
Free Cash Flow	₹0 Cr	-₹15 Cr	-₹51 Cr	₹1 Cr	+64.1%

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.26.

🟡 ROE has held roughly flat at -0.4% over 3 years.

🟡 ROCE has held roughly flat at -0.2% over 3 years.

🔴 Total Debt has grown at 78.3% a year over 3 years.

🟢 Free Cash Flow has grown at 64.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹191 Cr

Total Liabilities

₹93 Cr

Total Debt

₹85 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹29 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.4%

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 mixed5 general

Compare with VIJAYA SHRI.

Equitymaster, 16 Oct

VSF Projects Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

VSF Projects approves FY26 results, director reappointments at AGM

scanx.trade, 01 OctResults

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

VSF Projects Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Compare VIJAYA SHRI. with

Equitymaster, 27 Sept

VSF PROJECTS LTD. Share Price

Upstox, 04 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6.1/20

🟡Financial HealthAdequate10.7/20

🟡GrowthModest10/20

🔴ProfitabilityWeak3.2/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✗Interest cover stays above 3x-5.3x
✓Free cash flow remains positive₹1 Cr
✗ROCE stays above 8%-0.2%