About V-Marc India
V-Marc India manufactures high tension (HT), low tension (LT) cables and housing wires for DISCOMs, PSUs, EPC contractors and dealers. Its two manufacturing facilities are in Haridwar, with FY25 production capacity of 1.69 lakh kms. The company began as a partnership firm in 1996, became a private limited company in 2014 and listed on NSE SME on 09-Apr-21.
Investment Rationale
- Capacity expansion: An INR 50 Cr. capex is planned to increase production capacity to 2.12 lakh kms, with completion targeted in H2FY26. The company also has a long-term plan to reach 7 lakh kms over the next 5 years.
- Management guidance: Management expects revenue growth of 40%-50% in FY26 and EBITDA margins of 11%-12%, supported by capacity additions, new products and new verticals.
- New markets and products: The company is pursuing opportunities in defense, railways and exports, and has entered the retail business. It sells in 19 states and has a network of 950+ dealers and 150+ EPC contractors.
- Order visibility: The INR 364 Cr. order book as on 31-Oct'24 was to be executed in 1 year. Government companies represented 41%, EPC turnkey contractors 40%, and authorized channel partners and company depots 19%.
- Revenue growth: Revenue increased from 175 in FY21 to 905 in FY25. The report notes FY25 growth of 60% year-on-year.
V-Marc India Key Financials
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 175 | 181 | 247 | 565 | 905 |
| % Y-o-Y | 3% | 37% | 128% | 60% | |
| Gross Margin % | 21.8% | 22.2% | 23.1% | 22.9% | 23.1% |
| EBITDA % | 8.4% | 8.1% | 10.0% | 11.6% | 10.7% |
| PAT % | 3.3% | 2.7% | 4.2% | 4.7% | 4.0% |
| Debt (Short+Long) | 46 | 57 | 76 | 141 | 175 |
| Debt/Equity | 1.10x | 0.82x | 0.95x | 1.32x | 0.92x |
| NWC (days) | 115 | 196 | 106 | 75 | 92 |
| CFO | 2 | 3 | 34 | 57 | 23 |
| CFO / EBITDA % | 14% | 21% | 136% | 87% | 23% |
NWC includes Inventory, Receivables & Payables. NWC days is computed as % of rev.
EBITDA margin declined to 10.7% in FY25 from 11.6% in FY24. The report attributes the compression to higher manpower and marketing expenses, capacity expansion and entry into retail.
Valuation and Target Price
At a CMP of INR 416.30/- as of 04-Jul’25, the report lists the target price as Unrated. It provides no target price, upside estimate or valuation basis.
- INR 416.30/-
- CMP (04-Jul’25)
- Unrated
- Target price
- INR 1,017 Cr.
- Market capitalization
Key Risks
- Receivables and working capital: The company has an elongated payment cycle from government companies. The report notes that 25% of sales take place in Q4, adding to debtor balances; trade receivables were 284 in FY25.
- Pending SEBI matter: The final outcome at the Securities Appellate Tribunal (SAT), Mumbai, is pending on SEBI’s interim order alleging front running and a fraudulent scheme for price and volume manipulation during Apr'21, with illegal gains of INR 6.38 Cr.
- Input costs and competition: Aluminium price fluctuations and competition from organized and un-organized players may affect gross margins. The report notes industry estimates of Aluminium prices in the range of INR 240-INR 260/kg for FY26.
- Margin pressure: FY25 EBITDA margin was lower than FY24, with the report citing higher manpower and marketing expenses, capacity expansion and retail market entry.
Management
- CFO resignation: CFO Mr. Sanjiv Kumar resigned w.e.f. 30-Jun’25 for personal reasons.
- Listing status: The report notes that the company had yet to migrate to the mainboard after listing on NSE SME on 09-Apr-21.
- Credit rating: IVR BBB+/Stable/A2 (dtd. 19-Dec-24), upgraded from IVR BBB/A3+/Watch with developing implications.
Our View
The report points to expansion, new product and market initiatives, and management guidance as potential supports for growth. It also highlights working-capital pressure and the unresolved SEBI matter as important monitorables. The stock is classified as Unrated, with no target price or upside provided.