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INVESTMENT INSIGHTS

Check Before You Invest : Vardhman Textiles Ltd

BSE: 502986 NSE: VTL ISIN: INE825A01020
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Vardhman Textiles Ltd belong to?
Vardhman Textiles Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Vardhman Textiles Ltd a good quality company?
Vardhman Textiles Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Vardhman Textiles Ltd undervalued or overvalued?
Vardhman Textiles Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Vardhman Textiles Ltd a good buy now?
Vardhman Textiles Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vardhman Textiles Ltd?
Vardhman Textiles Ltd revenue growth is 3.1% for FY-2025 , which is below its 5 year CAGR of 8.7% , indicating slower growth.
Q.2 Gross Profit margin of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.1% for FY-2025 , which is above its 5 year median of 14.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.12% for FY-2025 , which is below its 5 year median of 13.68% indicating decreasing margins.
Q.4 Net Profit Margin of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Net Profit Margin is 9.17% for FY-2025 , is above with its 5 year median of 7.61%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.1 14.2
Operating Profit Margin 13.12 13.68
Net Profit Margin 9.17 7.61
Q.5 Return on Asset of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Return on Asset is 7.52(x), which is above its 5 year historical median of 6.99(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Return on equity is 9.57% for FY-2025 , which is above its historical median of 9.47%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Return on capital employed is 11.46% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Cash conversion cycle is 180 , above its historical median of 159 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.82 0.83
ROE 9.57 9.47
ROCE 11.46 11.17
Cash Conversion Cycle 180 159
Q.9 Debt to Equity ratio of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Debt-to-Equity ratio is 0.13 , which is lower with the industry average of 0.42 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Vardhman Textiles Ltd?
Vardhman Textiles Ltd Debt to cash flow from operations is 0.76 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vardhman Textiles Ltd?
Promoters hold 65.09% of the Vardhman Textiles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vardhman Textiles Ltd vs industry peers?
Vardhman Textiles Ltd revenue CAGR is 8.67% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 9,587.2 96.6
Gross Profit 1,543.5 3.2
Operating Profit 1,257 5.7
Net Profit 879 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.82 0.95
ROE 9.57 4.25
ROCE 11.46 7.55
Cash Conversion Cycle 179.86 102

Valuation & price assessment

Q.1 Stock return of Vardhman Textiles Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 12.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.2% 18.2% 21.1% 18.9%
Q.3 Valuation ratios of Vardhman Textiles Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 20.54 12.78 30.76
Price to Book 1.62 0.88 1.39
Price to Sales 1.68 0.89 1.01
EV to EBITDA 11.39 8.32 9.47

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