Check Before You Invest : Vishal Fabrics Ltd

Snapshot

Q.1 Which industry/sub-sector does Vishal Fabrics Ltd belong to?

Vishal Fabrics Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Vishal Fabrics Ltd a good quality company?

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

Q.3 Is Vishal Fabrics Ltd undervalued or overvalued?

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

Q.4 Is Vishal Fabrics Ltd a good buy now?

Vishal Fabrics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vishal Fabrics Ltd?

Vishal Fabrics Ltd revenue growth is 4.8% for FY-2025, which is above its 5-year CAGR of 3.22%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Return on capital employed is 10.85% for FY-2025, which is in line with its 5-year historical median of 10.85%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Return on Asset is 2.56%, which is in line with its 5-year historical median of 2.56%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Return on equity is 5.62% for FY-2025, which is below its 5-year historical median of 7.08%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Cash conversion cycle is 120 days, above its 5-year historical median of 93 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.66	1.66
ROE	5.62	7.08
ROCE	10.85	10.85
Cash Conversion Cycle	120 days	93 days

Q.6 Gross Profit margin of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is below its 5-year median of 5.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.64% for FY-2025, which is below its 5-year median of 8.77% indicating decreasing margins.

Q.8 Net Profit Margin of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Net Profit Margin is 1.57% for FY-2025, is below with its 5-year median of 1.87%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.1	5.7
Operating Profit Margin	7.64	8.77
Net Profit Margin	1.57	1.87

Q.9 Debt to Equity ratio of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Debt-to-Equity ratio is 0.67, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vishal Fabrics Ltd?

Vishal Fabrics Ltd Debt to cash flow from operations is 2.72, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vishal Fabrics Ltd?

Promoters hold 55.06% of the Vishal Fabrics Ltd, with 19.14% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vishal Fabrics Ltd vs industry peers?

Vishal Fabrics Ltd revenue CAGR is 3.22%, 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	4.8	4.2
Gross Profit Growth	21.9	8.6
Operating Profit Growth	14.9	7.5
Net Profit Growth	14.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.66	0.98
ROE	5.62	6.1
ROCE	10.85	7.6
Cash Conversion Cycle (days)	119.7	109

Valuation & price assessment

Q.1 Stock return of Vishal Fabrics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	4.6%	7.2%	5.2%	-24.7%

Q.3 Valuation ratios of Vishal Fabrics 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	19	15.88	19.97
Price to Book	0.92	1.24	1.32
Price to Sales	0.34	0.35	1.06
EV to EBITDA	6.86	7.08	9.32

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