Vascon Share: A Stock that Can Give You Multibagger Returns with its Rs 605 Crore Order

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Vascon Share: A Rising Star in the Engineering and Construction Sector

Introduction

Vascon Share is a company that specializes in real estate and EPC (engineering, procurement, and construction) projects. The company has been in the business for more than 37 years and has completed over 200 projects in India and abroad. The company has a market cap of Rs 1,319.11 crore and a debt of Rs 137.65 crore, which gives it a healthy balance sheet. The company has also shown impressive sales growth of 29.11% and profit growth of 190.82% in the last year.

The company has recently received a new order of Rs 605 crore from Bihar Medical Services and Infra Corporation Limited to construct a hospital in the Supaul district of Bihar. This is a huge boost for the company as it will increase its order book and revenue potential. The project is expected to be completed in 36 months, which will also improve the company’s cash flow and profitability.

In this blog post, we will discuss the following aspects of Vascon Share:


  • The company’s expertise and reputation in the engineering and construction sector
  • The company’s diversified portfolio and geographical presence
  • The company’s stock performance and growth prospects
  • The company’s dividend policy and future plans

Expertise and Reputation

The new order reflects the company’s expertise and reputation in the engineering and construction sector. The company has successfully executed various projects in different domains such as pharmaceuticals, IT, hospitality, education, healthcare, etc. The company has also won several awards and accolades for its quality and excellence.

Some of the notable projects that the company has completed or is working on are:

  • Sipla Limited in Patalganga, Maharashtra: This was the first order that the company received in November 1986. The project involved the construction of a pharmaceutical plant with state-of-the-art facilities.
  • Taj Mahal Palace Hotel in Mumbai, Maharashtra: This was one of the most prestigious projects that the company undertook in 2008. The project involved the restoration and renovation of the iconic hotel after it was damaged by a terrorist attack.
  • Infosys Campus in Pune, Maharashtra: This was one of the largest projects that the company executed in 2010. The project involved the construction of a sprawling IT campus with world-class amenities.
  • Apollo Hospital in Ahmedabad, Gujarat: This is one of the ongoing projects that the company is working on. The project involves the construction of a multi-specialty hospital with advanced medical facilities.

Diversified Portfolio and Geographical Presence

The company has a diversified portfolio of projects across various sectors and segments. The company caters to both public and private clients, as well as domestic and international markets. The company has also expanded its presence across India and other countries like UAE, Qatar, Oman, etc.

The company’s revenue mix for the year ended March 2023 was as follows:

  • Real-estate: 55%
  • EPC: 45%
The company’s geographical mix for the year ended March 2023 was as follows:

  • India: 80%
  • Overseas: 20%
The company’s diversified portfolio and geographical presence give it an edge over its competitors as it reduces its dependence on any single sector or market. It also enables it to leverage its expertise and experience across different domains and regions.

Stock Performance and Growth Prospects

The company’s stock price has also reflected its strong performance and growth prospects. The stock has given a CAGR return of 157% in the last one year, 77% in the last three years, and 15% in the last five years. The stock is currently trading at Rs 60, which is close to its 52-week high of Rs 62.

The stock has a PE ratio of 14.6, which is lower than the industry average of 18.7. This indicates that the stock is undervalued compared to its peers. The stock also has a low beta of 0.8, which means that it is less volatile than the market.

The stock has a high EPS (earnings per share) growth rate of 190%, which shows that the company is generating high profits from its operations. The stock also has a high ROE (return on equity) of 26%, which shows that the company is efficiently using its shareholders’ funds.

The stock has a bright future as the company has a robust order book of Rs 1,500 crore, which gives it revenue visibility for the next two to three years. The company also has a strong pipeline of projects worth Rs 2,000 crore, which are expected to be finalized soon.

The company is also planning to launch new real-estate projects in Pune, Mumbai, Bengaluru, Hyderabad, etc., which will boost its sales and margins. The company is also exploring opportunities in new sectors such as renewable energy, smart cities, etc., which will enhance its portfolio and presence.

Dividend Policy and Future Plans

The company has a dividend policy of paying 10% of its net profit as dividends to its shareholders. The company has not declared any dividend for the last two years, as it has reinvested its earnings for future growth. The company has also not issued any bonus shares or split its shares in the last five years.

The company’s future plans are to focus on its core competencies of real estate and EPC and to expand its footprint in India and abroad. The company also aims to improve its operational efficiency, quality standards, and customer satisfaction. The company also intends to increase its market share, profitability, and shareholder value.

Conclusion

Vascon Share is a stock that investors should keep an eye on as it has the potential to deliver consistent returns in the long term. The company has a solid track record, a robust order book, a healthy balance sheet, and a diversified portfolio. The company is well-positioned to capitalize on the opportunities in the engineering and construction sector and create value for its shareholders.

Disclaimer

This blog post is for informational purposes only and does not constitute any investment advice or recommendation. The author is not a financial advisor or an expert in the field of stock market analysis. The author does not own any shares of Vascon Share or any other company mentioned in this blog post. The author does not guarantee the accuracy, completeness, or timeliness of the information provided in this blog post. The author is not responsible for any losses or damages that may arise from the use of this blog post. The reader should do their own research and analysis before making any investment decision. The reader should consult a qualified financial advisor before investing in any stock or security.

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