Vardhman Textiles Ltd Stock Analysis

BSE: 502986 | NSE: VTL | Textile | Mid Cap

BSE Share Price 25-Nov-2022 18:01
341.30 5.65 (1.68%)

DeciZen - Make an Informed Decision on Vardhman Textiles

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Vardhman Textiles Price Chart

P/E Ratio (SA) :
7.04
Market Cap :
9,867.2 Cr.
52-wk low :
245.5
52-wk high :
576
Bole Toh?

1. Is Vardhman Textiles Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Vardhman Textiles Ltd is a below average quality company.

2. Is Vardhman Textiles Ltd undervalued or overvalued?

The key valuation ratios of Vardhman Textiles Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Vardhman Textiles Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Vardhman Textiles Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Vardhman Textiles:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Vardhman Textiles Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.2%13.7%6.7%12.4%11.7%8.4%10.1%8.3%5.9%19.7%-
Value Creation Index -0.3-0.0-0.5-0.1-0.1-0.4-0.3-0.4-0.60.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,1605,1715,7425,6135,6905,8516,4156,3255,9269,38610,214
YoY Gr. Rt. %-24.3%11%-2.2%1.4%2.8%9.6%-1.4%-6.3%58.4%-
Adj EPS 10.320.78.920.622.916.322.51913.858.148.5
YoY Gr. Rt. %-101.6%-57.2%131.6%11.4%-29.1%38.2%-15.4%-27.2%319.9%-
BVPS (₹) 71.589.596.9118.9142.5160.9181.7196.5212.7260.8278.4
Adj Net Profit 3286602836386414676455463981,6791,401
Cash Flow from Ops. 2697061,2118691,28990.14478511151,430-
Debt/CF from Ops. 11.24.62.131.725.452.618.51.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.5%10.5%13.5%58.4%
Adj EPS 21.2%20.5%37.3%319.9%
BVPS 15.512.912.822.6
Share Price 21.3% 5.4% 24.9% -11.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 15.325.89.518.916.710.813.1106.824.618
Op. Profit Mgn % 20.425.116.419.719.914.717.614.114.424.819.2
Net Profit Mgn % 7.912.84.911.411.3810.18.66.717.913.7
Debt to Equity 1.31.10.80.70.60.50.40.40.40.30.1
Working Cap Days 270263252225187193209226264194213
Cash Conv. Cycle 168161148149145146156171198138159

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.00%

Sales growth is growing at healthy rate in last 3 years 13.53%

Net Profit is growing at healthy rate in last 3 years 37.30%

Sales growth is good in last 4 quarters at 33.90%

No data to display

Latest Financials - Vardhman Textiles Ltd.

Standalone Consolidated
TTM EPS (₹) 48.5 44.4
TTM Sales (₹ Cr.) 10,214 10,592
BVPS (₹.) 278.4 285.1
Reserves (₹ Cr.) 7,992 8,184
P/BV 1.23 1.20
PE 7.04 7.72
From the Market
52 Week Low / High (₹) 245.50 / 576.00
All Time Low / High (₹) 3.63 / 576.00
Market Cap (₹ Cr.) 9,867
Equity (₹ Cr.) 57.8
Face Value (₹) 2
Industry PE 23.7

Management X-Ray of Vardhman Textiles :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Vardhman Textiles

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Vardhman Textiles Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Vardhman Textiles on 25-Nov-2022 18:01 is : 341.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 25-Nov-2022 18:01 the market cap of Vardhman Textiles stood at ₹ 9,867.2.
The latest PE ratio of Vardhman Textiles as of 25-Nov-2022 18:01 is 7.04.
The latest PB ratio of Vardhman Textiles as of 25-Nov-2022 18:01 is 1.23
The 52-week high of Vardhman Textiles is ₹ 576.0 and the 52-week low is ₹ 245.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Vardhman Textiles is ₹ 10,214 ( Cr.) .

About Vardhman Textiles Ltd

Vardhman Textiles, incorporated in 1973, is one of the pioneers in textile industry with operations in the segments of yarn, sewing thread, steel, and fabric. Formerly known as Mahavir Spinning Mills, it is a part of Vardhman Group managed by Paul Oswal.

In 1975, Vardhman Textiles’s first plant was commissioned with 25,088 spindles in Hoshiarpur, Punjab. In 1977-78, the company set up a 25,000-spindle textile mill at Malerkotla in Sanazur, Punjab. In 1992-93, a 100% Export Oriented Unit (EOU) was commissioned by Vardhman Textiles’s at Mandideep. Both the Malerkotla mill and EOU unit was awarded the ISO 9002/BIS 14002 by Bureau of Indian Standards (BIS).

In March 1995, its gassed and mercerized dyed yarn project at Hoshiarpur commenced production.In order to set up 100% EOU located at Baddi, Himachal Pradesh, the company formed joint venture with Marubeni Corporation and Toho Rayon of Japan. For this company established Vardhman Acrylics and started commercial production in September 1996.

In 1998-99 company set up its 3rd 100% EOU at Mandideep with an installed production capacity of 25000 spindles.

Company set up unit-II at Ludhiana in order to expand its sewing thread capacity. This unit had an installed capacity of 5 TPD. Company entered an agreement with Amercian & Effird Inc., USA to manufacture superior sewing thread.

Much later in 2004 the textile business of Vardhman Spinning and General Mills was merged with Vardhman Textiles. The company added new units of Looms and Rotors with a installed capacity of 264 Nos and 528 Nos respectively

Companies like VMT Spinning Company (VMT), Vardhman Threads (VTL) and Vardhman Yarns & Threads and Vardhman Acrylics are the subsidiaries of Vardhman Textiles. Vardhman Textiles is promoted by Ludhiana based Vardhman Group, a major textile business house in India.

Company has received ISO 9002/ ISO 14002 certification for its quality management.

Vardhman Textiles, exports its products to more than 25 countries and has a strong presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East.

Vardhman Group (Parent Company)Vardhman Group was set up in the year 1965 at Ludhiana, Northern India. The group has business interest in area of Yarns, Fabrics, Sewing Threads, Fibre and Alloy Steel. Vardhman group is one of the largest spinning group of the country with a spindlage of over 5,50,000.

The group has 12 production plants located in the states of Punjab, Himachal Pradesh and Madhya Pradesh. Currently the group has manufacturing capacity of approximately 25 metric tonne/per day of sewing thread in its plant at Hoshiarpur, Ludhiana, Baddi and Perundurai. Currently the group employs 20,000 people.Future ProspectsVardhman Textiles is undertaking Research and Development activities in order to develop of new products and for improvement in the production process and quality of products.

PRODUCT

Yarn: Under this segment, the company manufactures wide range of yarn such as Grey Cotton, Grey Acrylic, Crayons, Hank Dyed Acrylic, Vardhman Knitting, Gassed Mercerised Cotton and many more.Company’s annual manufacturing capacity of yarn is to 98,736 MT.

Fabrics- Company manufactures fabric for shirting and bottom weights. It produces fabrics of various types viz. 100% Cotton, Polyester cotton, Chief Value Cotton and Cotton Stretch. Company’s fabric manufacturing capacity is  30 million meters per annum

Sewing Threads- Company manufactures wide range of threads such as cotton, polyster, core spun (polyester cotton/ polyester polyester), trilobal embroidery thread, bonded nylon and lubricated nylon thread including specialized threads like button fusing, bead fusing and anti wicking, button shanking, indigo dyed and so on.

Steel- Under this, company has an installed capacity of 1,00,000 Metric tonnes per annum.

Awards

The Company was awarded Golden trophy by Textile Export Promotion Council (Merchant Export Category for Fabrics) for the various export performance in the year 1993-94.

Vardhman Textiles received the award of merit from the Government of India in the year 1994-95 and 1995-96.

2010-11 - Textile Export Promotion Council 2010-11

2011-12 -Textile Export Promotion Council 2011-12"

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