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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 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 Semi Strong which suggest that the price of Vardhman Textiles Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘValue Creation Index Colour Code Guide ⓘ |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | |||
| ROCE % ⓘ | 13.7% | 6.7% | 12.9% | 12.8% | 9.2% | 10.1% | 8.2% | 5.8% | 19.5% | 8.5% | - | ||
| Value Creation Index ⓘ | 0.0 | -0.5 | -0.1 | -0.1 | -0.3 | -0.3 | -0.4 | -0.6 | 0.4 | -0.4 | - | ||
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ |
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| Sales ⓘ | 5,171 | 5,742 | 5,613 | 5,690 | 5,851 | 6,415 | 6,325 | 5,926 | 9,386 | 9,841 | 9,372 | ||
| YoY Gr. Rt. % | - | 11% | -2.2% | 1.4% | 2.8% | 9.6% | -1.4% | -6.3% | 58.4% | 4.8% | - | ||
| Adj EPS ⓘ | 20.7 | 8.9 | 21.5 | 25.3 | 18.2 | 22.5 | 18.5 | 13.4 | 57.5 | 26.3 | 19.6 | ||
| YoY Gr. Rt. % | - | -57.2% | 141.6% | 18% | -28.3% | 23.7% | -17.5% | -27.7% | 329.2% | -54.2% | - | ||
| BVPS (₹) ⓘ | 89.5 | 96.9 | 118.9 | 142.5 | 160.9 | 181.7 | 196.5 | 212.7 | 260.8 | 286.9 | 291.4 | ||
| Adj Net Profit ⓘ | 660 | 283 | 665 | 708 | 521 | 645 | 533 | 386 | 1,661 | 761 | 567 | ||
| Cash Flow from Ops. ⓘ | 706 | 1,211 | 869 | 1,289 | 90.1 | 447 | 851 | 115 | 1,430 | 1,815 | - | ||
| Debt/CF from Ops. ⓘ | 4.6 | 2.1 | 3 | 1.7 | 25.4 | 5 | 2.6 | 18.5 | 1.4 | 0.9 | - | ||
CAGR ⓘCAGR Colour Code Guide ⓘ |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9 Years | 5 Years | 3 Years | 1 Years | |||||||||
| Sales ⓘ | 7.4% | 11% | 15.9% | 4.8% | ||||||||
| Adj EPS ⓘ | 2.7% | 7.7% | 12.4% | -54.2% | ||||||||
| BVPSⓘ | 13.8% | 12.3% | 13.4% | 10% | ||||||||
| Share Price | 20.1% | 14.4% | 38.1% | 12.1% | ||||||||
Key Financial Parameters ⓘPerformance Ratio Colour Code Guide ⓘ |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | ||
| Return on Equity % ⓘ | 25.8 | 9.5 | 19.7 | 18.4 | 12.1 | 13.1 | 9.8 | 6.5 | 24.3 | 9.6 | 6.8 | |
| Op. Profit Mgn % ⓘ | 25.1 | 16.4 | 19.7 | 19.9 | 14.7 | 17.6 | 14.1 | 14.4 | 24.8 | 13.7 | 10.6 | |
| Net Profit Mgn % ⓘ | 12.8 | 4.9 | 11.9 | 12.4 | 8.9 | 10.1 | 8.4 | 6.5 | 17.7 | 7.7 | 6.1 | |
| Debt to Equity ⓘ | 1.1 | 0.8 | 0.7 | 0.6 | 0.5 | 0.4 | 0.4 | 0.4 | 0.3 | 0.2 | - | |
| Working Cap Days ⓘ | 263 | 252 | 225 | 187 | 193 | 209 | 226 | 263 | 194 | 179 | 0 | |
| Cash Conv. Cycle ⓘ | 161 | 148 | 149 | 145 | 146 | 156 | 171 | 198 | 138 | 127 | 0 | |
Sales growth is growing at healthy rate in last 3 years 15.87%
Net Profit is growing at healthy rate in last 3 years 12.43%
Return on Equity has declined versus last 3 years average to 6.80%
Sales growth is not so good in last 4 quarters at -7.94%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 19.6 | 20.8 |
| TTM Sales (₹ Cr.) | 9,372 | 9,644 |
| BVPS (₹.) ⓘ | 291.4 | 300.6 |
| Reserves (₹ Cr.) ⓘ | 8,367 | 8,634 |
| P/BV ⓘ | 1.33 | 1.29 |
| PE ⓘ | 19.75 | 18.59 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 270.00 / 417.60 |
| All Time Low / High (₹) | 3.63 / 576.00 |
| Market Cap (₹ Cr.) | 11,203 |
| Equity (₹ Cr.) | 57.8 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 38.1 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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"
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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