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Vardhman Polytex Ltd. Stock Analysis

Small Cap
Evaluated by 229 users | BSE: 514175 | NSE: VARDMNPOLY |
Textile
Vardhman Polytex, was promoted as a Joint Sector Company by Mohta Industries (MILs) and Punjab State Industrial Development Corporation, (PSIDCs), and was incorporated in the name of Punjab Mohta Polytex . The company got its present name in 1989. The registered and corporate office...

Analysis of Financial Track Record

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 5.31%9.44%-5.2%7.77%9.52%7.85%10.6%8.37%-118.55%-34.48%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 528716749786923942878859621811
Y-o-Y Gr. Rt.-35.7%4.6%4.9%17.4%2.1%-6.8%-2.2%-27.7%30.5%
Adjusted EPS (Rs.) 1.614.46-50.461.142.11-3.312.58-0.28-190.21-33.21
Y-o-Y Gr. Rt.-803.8%-449%NA85.1%-256.9%NA-110.9%NANA
Book Value per Share (Rs.) 102.69108.3557.7357.359.9757.6948.1848.18-142.14-175.73
Adjusted Net Profit 223.5-8224.2-7.45.8-0.6-424-74
Net Op. Cash Flow (Rs. Cr.) 12819.517771.561.776.210875.749.463.5
Debt to Cash Flow from Ops 3.4324.722.786.967.555.913.765.249.077.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Vardhman Polytex Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.9%-2.6%-2.6%30.5%
Adjusted EPS -240.1%-273.5%-334.4%NA
Book Value per Share -206.2-224-253.90
Share Price -25.5% -29.5% -41.4% 163.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 1.4415.26-60.752.073.63-5.744.88-0.57405.0220.9
Operating Profit Margin (%) 11.9314.58-1.5111.4510.026.687.027.73-6.580.16
Net Profit Margin (%) 0.383.28-10.940.260.45-0.780.66-0.07-68.24-9.13
Debt to Equity 3.392.745.244.873.913.513.773.69-1.41-1.14
Working Capital Days 176130110849110711410110039
Cash Conversion Cycle 7578592428404134353
Entity Percentage Holding
Promoters 60.18%
Institutions 1.16%
Non-Institutions 38.66%
Pledged *81.5581.5581.5581.4981.4981.4981.4981.4981.4981.49
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Vardhman Polytex's performance infers:

Vardhman Polytex earnings have declined by -273.5%, whereas share price has depreciated -29.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Vardhman Polytex share prices over the last 10 years. Here is what we found out:

Vardhman Polytex share price has depreciated -19.4% annually over the past ten years.

Vardhman Polytex, was promoted as a Joint Sector Company by Mohta Industries (MILs) and Punjab State Industrial Development Corporation, (PSIDCs), and was incorporated in the name of Punjab Mohta Polytex . The company got its present name in 1989. The registered and corporate office of the company is located at Chandigarh Road, Ludhiana.

Vardhman Polytex is one of leading textile players of the Punjab. The company usually exports 30% of its products to the other country.It 

Vardhman Polytex, was promoted as a Joint Sector Company by Mohta Industries (MILs) and Punjab State Industrial Development Corporation, (PSIDCs), and was incorporated in the name of Punjab Mohta Polytex . The company got its present name in 1989. The registered and corporate office of the company is located at Chandigarh Road, Ludhiana.

Vardhman Polytex is one of leading textile players of the Punjab. The company usually exports 30% of its products to the other country.It  has its  production facilities for cotton yarn spinning in Bathinda (Punjab), Baddi (Himachal Pradesh) and a worsted spinning unit in Ludhiana (Punjab). With the addition of 25,000 spindles in Ludhiana, the company would have a total installed capacity close to 125,000 spindles. It has also set up an independent cotton purchase office in Bathinda for the selection and procurement of cotton.

The Main Area of business:-

Vardhman Polytex is engaged in the manufacture of yarn. It is also engaged in cotton spinning and line manufacturing, staple fiber yarn machine combing and re-combing of all types of fibers. It produces various categories of yarns like cotton, polyester cotton blended, synthetic, acrylic and dyed yarns.

Its subsidiaries:-

  • Oswal F.M. Hammerle (India)
  • F.M. Hammerle Verwaultungs Gmbh, Austria  
  • F.M. Hammerle Nfg Gmbh, Austria   
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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