Check Before You Invest : Vardhman Polytex Ltd

Snapshot

Q.1 Which industry/sub-sector does Vardhman Polytex Ltd belong to?

Vardhman Polytex Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Vardhman Polytex Ltd a good quality company?

Vardhman Polytex Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Vardhman Polytex Ltd undervalued or overvalued?

Vardhman Polytex Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Vardhman Polytex Ltd a good buy now?

Vardhman Polytex Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vardhman Polytex Ltd?

Vardhman Polytex Ltd revenue growth is -23.1% for FY-2025, which is below its 5-year CAGR of -12.66%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Return on capital employed is 0% for FY-2025, which is below its 5-year historical median of 28.55%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Return on Asset is 6.62%, which is above its 5-year historical median of -5.86%, indicating improved asset utilization efficiency.

Q.4 Cash conversion cycle of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Cash conversion cycle is -150 days, below its 5-year historical median of -49 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is above its 5-year median of -4.4%, indicating increasing margins.

Q.6 Operating Profit Margin of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.19% for FY-2025, which is above its 5-year median of 2.8% indicating increasing margins.

Q.7 Net Profit Margin of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Net Profit Margin is 5.24% for FY-2025, is above with its 5-year median of -1.68%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.4	-4.4
Operating Profit Margin	4.19	2.8
Net Profit Margin	5.24	-1.68

Q.8 Debt to Equity ratio of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Debt-to-Equity ratio is -0.20, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Vardhman Polytex Ltd?

Vardhman Polytex Ltd Debt to cash flow from operations is -0.51, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vardhman Polytex Ltd?

Promoters hold 37.50% of the Vardhman Polytex Ltd, with 60.34% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vardhman Polytex Ltd vs industry peers?

Vardhman Polytex Ltd revenue CAGR is -12.66%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-23.1	4.2
Gross Profit Growth	0	8.6
Operating Profit Growth	0	7.3
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.26	0.98
ROE	-	6.1
ROCE	-	7.6
Cash Conversion Cycle (days)	-149.85	109

Valuation & price assessment

Q.1 Stock return of Vardhman Polytex Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.7%	34.5%	23.3%	-40.9%

Q.3 Valuation ratios of Vardhman Polytex Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.26	29.79	19.97
Price to Book	-1.64	-0.48	1.32
Price to Sales	1.33	0.30	1.06
EV to EBITDA	14.36	8.67	9.32

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