A micro-cap steel stock priced under Rs.60 caught investors’ attention after it hit the 20 percent upper circuit on the back of a stellar quarterly performance. The surge came as the company reported a remarkable 110 percent jump in net profit annually, signaling strong operational momentum and renewed market optimism.
During Thursday’s trading session, the shares of Veto Switchgears & Cables Ltd reached an intraday high of Rs.131.10 per share, hitting the 20 percent upper circuit limit from the previous close of Rs.109.25 per share.
Financial Performance
Veto Switchgears & Cables Ltd (VSCL) experienced a significant rise fueled by strong net profit and revenue growth, as reflected in its latest financial results. In Q4 FY25, the company reported revenue of Rs.89.70 crore, marking a year-on-year growth of 8.1 percent compared to Rs.83.02 crore in Q4 FY24. On a sequential basis, revenue increased 16.3 percent from Rs.77.15 crore in Q3 FY25, indicating sustained operational momentum.
Net profit for Q4 FY25 stood at Rs.7.33 crore, a sharp 230.6 percent rise from Rs.2.22 crore in the same quarter last year. Sequentially, net profit grew 102 percent from Rs.3.63 crore in Q3 FY25.
For the full year FY25, the company recorded a total revenue of Rs.302.92 crore, reflecting a marginal 0.6 percent decline from Rs.304.82 crore in FY24. Despite the slight dip in revenue, annual net profit increased 20.8 percent to Rs.21.81 crore from Rs.18.06 crore in the previous year.
VSCL has built a well-diversified revenue base through its broad product portfolio, which includes manufacturing wires and cables (such as standard, telephone, and co-axial cables) and electrical accessories like switches, extension cords, and isolator boxes. Additionally, the company trades outsourced products such as ceiling fans, CFLs, and LED lights under its brand, enhancing revenue diversity.
The company operates an extensive distribution network across states like Rajasthan, Uttar Pradesh, Madhya Pradesh, and others, supported by approximately 12 depots nationwide. Each depot serves the specific needs of its respective region. Additionally, the company has a strong dealer presence, with around 4,000 dealers (2,500 under VSCL and 1,500 under VMPL) across India, promoting products under the Veto and Vimal Power brands.
VSCL has a Return on Capital Employed (ROCE) of 11.3 percent and a Return on Equity (ROE) of 6.87 percent. Its Price-to-Earnings (P/E) ratio stands at 12.56, lower than the industry average of 30.38. Furthermore, the company maintains a current ratio of 6.19, a debt-to-equity ratio of 0.04, and an Earnings Per Share (EPS) of Rs.8.7.
Written by – Siddesh S Raskar
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