Vishal Nirmiti Ltd

The Pune-based company makes concrete sleepers, the beams that hold railway tracks in place. Sleepers sold to Railways, directly or through its contractors, made up 64% of its FY26 revenue of INR 339 cr.

We would skip this issue. We generally avoid businesses where the government is a significant buyer, as prices are set by bidding and the buyer decides when to order and when to pay. VNL relies largely on Railways, and its free cash flow was just INR 1 cr over FY24 to FY26, against INR 103 cr of post-tax EBITDA. 

Its governance record also raises material concerns, including a CBI bribery FIR naming a director, an NCLT fine over accounts signed by a disqualified Chairman, and significant related party dealings.