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 average quality company, based on a somewhat consistent 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 8.67%, indicating slower growth.

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

Vardhman Textiles Ltd Return on capital employed is 11.46% for FY-2025, which is in line with its 5-year historical median of 11.17%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Vardhman Textiles Ltd?

Vardhman Textiles Ltd Return on Asset is 7.52%, which is above its 5-year historical median of 6.99%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vardhman Textiles Ltd?

Vardhman Textiles Ltd Return on equity is 9.57% for FY-2025, which is in line with its 5-year historical median of 9.47%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Vardhman Textiles Ltd?

Vardhman Textiles Ltd Cash conversion cycle is 180 days, above its 5-year historical median of 159 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	0.82	0.83
ROE	9.57	9.47
ROCE	11.46	11.17
Cash Conversion Cycle	180 days	159 days

Q.6 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.7 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 in line with its 5-year median of 13.68% indicating stable margins.

Q.8 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	5-year Historic Median
Gross Profit Margin	16.1	14.2
Operating Profit Margin	13.12	13.68
Net Profit Margin	9.17	7.61

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 0.5, 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.

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 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	3.1	4.2
Gross Profit Growth	30.1	8.6
Operating Profit Growth	31.2	7.5
Net Profit Growth	44.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.82	0.98
ROE	9.57	6.1
ROCE	11.46	7.6
Cash Conversion Cycle (days)	179.86	109

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 13% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13%	20.7%	22.9%	31.4%

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 compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	22.39	15.34	19.97
Price to Book	1.77	1.38	1.32
Price to Sales	1.83	1.34	1.06
EV to EBITDA	12.33	8.97	9.32

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