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Check Before You Invest : Vardhman Polytex Ltd

BSE: 514175 NSE: VARDMNPOLY ISIN: INE835A01029
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

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 quality company, based on a 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 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 Polytex Ltd?
Vardhman Polytex Ltd revenue growth is -23.1% for FY-2025 , which is below its 5 year CAGR of -12.7% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 8.4 -4.4
Operating Profit Margin 4.19 2.8
Net Profit Margin 5.24 -1.68
Q.5 Return on Asset of Vardhman Polytex Ltd?
Vardhman Polytex Ltd Return on Asset is 6.62(x), which is above its 5 year historical median of -5.86(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Vardhman Polytex Ltd?
Vardhman Polytex Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Vardhman Polytex Ltd?
Vardhman Polytex Ltd Cash conversion cycle is -150 , below its historical median of -49 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.26 1.97
ROE - -
ROCE - 1.32
Cash Conversion Cycle -150 -49
Q.9 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 0.42 , indicating lower debt levels in the industry.
Q.10 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, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vardhman Polytex Ltd?
Promoters hold 34.22% of the Vardhman Polytex Ltd, with 69.62% 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 0.00% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 285 96.6
Gross Profit 23.9 3.2
Operating Profit 12 5.7
Net Profit 15 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.26 0.95
ROE - 4.25
ROCE - 7.55
Cash Conversion Cycle -149.85 102

Valuation & price assessment

Q.1 Stock return of Vardhman Polytex Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 7.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.2% 39.5% 32.9% -23.4%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 48.97 0.19 30.76
Price to Book -1.85 0.00 1.39
Price to Sales 1.51 0.05 1.01
EV to EBITDA 16.02 198.20 9.47

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