Synopsis:
Vascon Engineers signed a 5-year MoU with Adani Infra to partner from the design stage on three Mumbai projects. This collaboration aims to boost Vascon’s turnover by 30% and will be reviewed annually.
The shares of a Small-Cap company, which specializes in engineering, procurement, and construction (EPC) services across various sectors, jumped upto 14 percent upon signing a Memorandum of Understanding (MoU) with Adani Infra Ltd.
With a market capitalization of Rs. 1,445.30 Crores on Monday, the shares of Vascon Engineers Ltd jumped upto 13.8 percent after making a high of Rs. 65.93 compared to its previous closing price of Rs. 57.89.
What Happened
Vascon Engineers Ltd, engaged in engineering, procurement, and construction (EPC) services across various sectors, has entered into a significant Memorandum of Understanding (MoU) with Adani Infra (India) Limited to serve as an Execution Partner under an Early Engagement Model for a period of five years.
Under this strategic collaboration, Vascon will work closely with Adani from the design stage on selected projects, enabling smooth and efficient execution. Currently, three projects totaling approximately 13.15 million sq. ft. in Mumbai have been identified under this model.
The partnership aims to generate project work equal to 30% of Vascon’s annual turnover, emphasizing its potential to substantially boost Vascon’s business. This engagement is set to be reviewed annually and is viewed as a long-term strategic alliance. Vascon believes this collaboration marks a major milestone and will deliver mutual value while strengthening its presence in large-scale infrastructure execution.
Financials & Others
The company’s revenue rose by 12.71 percent from Rs. 196 crores to Rs. 221 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 10 crores to Rs. 22 crores during the same period.
The stock has a low debt-to-equity ratio of 0.19, indicating strong financial stability. With a PEG ratio of 0.11, it suggests the stock is undervalued relative to its growth. The P/E ratio stands at 18.7, which is significantly lower than the industry average of 41.6, making it attractively priced. Additionally, the stock is trading at 1.20 times its book value, reflecting a reasonable valuation.
Vascon Engineers Ltd is an Indian company specializing in engineering, procurement, and construction (EPC) services. The company works across segments, including real estate development, manufacturing, and building management systems, with a strong presence in residential, commercial, industrial, institutional, and hospitality projects.
The company was established in 1986 in Pune. It boasts a legacy of over three decades marked by the completion of hundreds of projects nationwide. Its portfolio includes premium homes, factories, IT parks, malls, hotels, schools, and hospitals, contributing significantly to India’s infrastructure through both EPC contracts and direct property development
In Q1 FY26, the company reported strong revenue with EPC contributing Rs. 204 crore and Real Estate Rs. 20 crore. Efficient execution across all projects helped boost revenue, and with a healthy order book total of Rs. 2,902 Crores, momentum is expected to increase in the coming quarters.
The has a set of marquee clients that includes leading companies and institutions such as Cipla, IBM, Global Hospitals, Symbiosis University, Dr. Reddy’s, NBCC, DLF, Sahyadri Hospitals, GMR, Sanofi, Zensar, Hyatt, Tata Housing, Novotel Hotels, GIM, Vedanta, Airports Authority of India, and Bangalore Metro Rail Corporation Limited (BMRCL). These clients reflect the company’s consistent quality and strong relationships across diverse sectors.
Written by Sridhar J
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