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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Vardhman Acrylics Ltd

About the Company - Vardhman Acrylics Ltd

Vardhman Acrylics Ltd. is a Public Limited Listed company incorporated on 24/12/1990 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L51491PB1990PLC019212 and registration number is 019212. Currently Company is involved in the business activities of Spinning, weaving and finishing of textiles. Company’s Total Operating Revenue is Rs. 303.33 Cr. and Equity Capital is Rs. 80.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Manmade Fibre - Acrylic FibreVardhman Premises, Ludhiana Punjab 141010secretarial.lud@vardhman.com
http://www.vardhman.com
Management
NamePosition Held
Mr. Shri Paul OswalChairman
Mr. Bal Krishan ChoudharyManaging Director
Mr. Sachit JainDirector
Mrs. Suchita JainDirector
Mrs. Apinder SodhiIndependent Director
Mr. Anil KumarIndependent Director
Ms. Parakh OswalIndependent Director
Mr. Bhooshan Lal UppalIndependent Director
Mr. Sandeep KapurIndependent Director

Vardhman Acrylics Ltd. Share Price Update

Share PriceValue
Today₹66.20
Previous Day₹64.50

Basic Stock Data of Vardhman Acrylics Ltd

Market Cap 529 Cr.
Current Price 65.8
High / Low74.9/43.0
Stock P/E32.7
Book Value 31.4
Dividend Yield3.81 %
ROCE18.9 %
ROE14.4 %
Face Value 10.0

Data Source: screener.in

Competitors of Vardhman Acrylics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Vardhman Acrylics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales84.59108.7647.4662.79105.05102.42122.19118.60108.1880.6080.8086.4161.89
Expenses63.7975.9736.7758.3890.98108.35105.43111.0596.7377.3982.3081.0957.02
Operating Profit20.8032.7910.694.4114.07-5.9316.767.5511.453.21-1.505.324.87
OPM %24.59%30.15%22.52%7.02%13.39%-5.79%13.72%6.37%10.58%3.98%-1.86%6.16%7.87%
Other Income0.000.000.000.000.000.000.002.913.673.313.543.952.96
Interest0.040.390.060.110.120.100.090.060.070.070.060.070.03
Depreciation1.361.331.351.361.371.341.361.381.391.361.401.421.46
Profit before tax19.4031.079.282.9412.58-7.3715.319.0213.665.090.587.786.34
Tax %23.56%26.20%17.35%16.67%20.59%24.69%23.51%23.73%24.30%22.99%20.69%20.57%11.67%
Net Profit14.8322.937.672.459.99-5.5511.716.8810.343.920.466.185.60
EPS in Rs1.852.850.950.301.24-0.691.460.861.290.490.060.770.70

Vardhman Acrylics Ltd Quarterly Chart

Vardhman Acrylics Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales390436468498448368327392334280303427310
Expenses356394418465403331295364308232294390298
Operating Profit3442503444383128274893612
OPM %9%10%11%7%10%10%10%7%8%17%3%8%4%
Other Income1382116222521252715141314
Interest0110001001000
Depreciation1111115455555556
Profit before tax35385945625747474857174320
Tax %31%36%26%25%34%28%17%26%3%25%16%24%
Net Profit24244433414139344643153316
EPS in Rs2.584.703.594.385.124.804.295.765.341.814.092.02
Dividend Payout %0%0%0%28%114%29%42%58%0%0%1,380%61%

Vardhman Acrylics Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%83.33%-25.00%24.24%0.00%-4.88%-12.82%35.29%-6.52%-65.12%120.00%
Change in YoY Net Profit Growth (%)0.00%83.33%-108.33%49.24%-24.24%-4.88%-7.94%48.11%-41.82%-58.59%185.12%

Vardhman Acrylics Ltd Growth

Compounded Sales Growth
10 Years:0%
5 Years:5%
3 Years:8%
TTM:-31%
Compounded Profit Growth
10 Years:3%
5 Years:-3%
3 Years:-11%
TTM:-31%
Stock Price CAGR
10 Years:16%
5 Years:11%
3 Years:23%
1 Year:36%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:10%
Last Year:14%

Vardhman Acrylics Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital109959393938080808080808080
Reserves142165208228225215239253275318132165172
Borrowings8421111110300
Other Liabilities47558210877127921199686879790
Total Liabilities306319385430395423413453453485302342342
Fixed Assets96867572615855526459565456
CWIP0032000000041
Investments89135194263256248260284160232134172169
Other Assets12198113927811799118229194112112116
Total Assets306319385430395423413453453485302342342

Vardhman Acrylics Ltd Reserves and Borrowings Chart

Vardhman Acrylics Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 282443552342326439-939
Cash from Investing Activity -323-44-5843307-880-83190-37
Cash from Financing Activity 6-20-5-1-68-63-15-20-24-1-198-3
Net Cash Flow17-6-3-28-5-261-44-17-1

Vardhman Acrylics Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days828125231510201311
Inventory Days6872786362123859492139121108
Days Payable2231456037100668483897570
Cash Conversion Cycle53434152728412420695949
Working Capital Days834232-212-5114-1213215
ROCE %14%15%18%12%19%19%15%14%14%15%6%19%

Vardhman Acrylics Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Vardhman Acrylics Ltd ROCE Trend

Vardhman Acrylics Ltd EPS Trend

Vardhman Acrylics Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.091.815.345.764.29
Diluted EPS (Rs.)4.091.815.345.764.29
Cash EPS (Rs.)4.772.486.016.414.96
Book Value[Excl.RevalReserv]/Share (Rs.)30.5326.4249.5744.2341.52
Book Value[Incl.RevalReserv]/Share (Rs.)30.5326.4249.5744.2341.52
Dividend / Share (Rs.)2.5025.000.000.002.50
Revenue From Operations / Share (Rs.)53.0937.7434.8741.6148.77
PBDIT / Share (Rs.)6.082.897.856.646.54
PBIT / Share (Rs.)5.402.227.175.995.87
PBT / Share (Rs.)5.362.177.115.955.81
Net Profit / Share (Rs.)4.091.815.345.764.29
PBDIT Margin (%)11.457.6622.5015.9613.41
PBIT Margin (%)10.175.8720.5714.4012.03
PBT Margin (%)10.105.7420.3814.3111.92
Net Profit Margin (%)7.704.7915.3113.838.79
Return on Networth / Equity (%)13.396.8510.7713.0110.33
Return on Capital Employeed (%)17.158.0814.0813.1313.33
Return On Assets (%)9.604.818.8410.207.60
Total Debt / Equity (X)0.000.010.000.000.00
Asset Turnover Ratio (%)1.320.770.590.730.90
Current Ratio (X)2.232.314.913.533.33
Quick Ratio (X)1.301.374.072.832.56
Inventory Turnover Ratio (X)3.473.362.673.474.48
Dividend Payout Ratio (NP) (%)0.001379.910.000.0046.60
Dividend Payout Ratio (CP) (%)0.001005.820.000.0040.29
Earning Retention Ratio (%)0.00-1279.910.000.0053.40
Cash Earning Retention Ratio (%)0.00-905.820.000.0059.71
Interest Coverage Ratio (X)166.1459.53118.92179.92119.56
Interest Coverage Ratio (Post Tax) (X)112.6938.3081.94156.9379.43
Enterprise Value (Cr.)346.23429.38192.7391.80318.10
EV / Net Operating Revenue (X)0.811.420.680.270.81
EV / EBITDA (X)7.0818.483.061.726.05
MarketCap / Net Operating Revenue (X)0.811.421.050.640.81
Retention Ratios (%)0.00-1279.910.000.0053.39
Price / BV (X)1.422.030.730.600.95
Price / Net Operating Revenue (X)0.811.421.050.640.81
EarningsYield0.090.030.140.210.10

Vardhman Acrylics Ltd Profitability Ratios (%)

Vardhman Acrylics Ltd Liquidity Ratios

Vardhman Acrylics Ltd Liquidity Ratios (%)

Vardhman Acrylics Ltd Interest Coverage Ratios (X)

Vardhman Acrylics Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vardhman Acrylics Ltd

Fair Value: ₹153.49

The stock is undervalued by 133.27% compared to the current price ₹65.8

*Investments are subject to market risks

Strength and Weakness of Vardhman Acrylics Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 20.33, which is a positive sign.
  2. The company has higher reserves (210.54 cr) compared to borrowings (1.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (383.15 cr) and profit (44.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 6.00 and average Dividend Yield of 12.61%.
  2. The stock has a low average ROCE of 15.00%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 38.25, which may not be favorable.

Should I Buy Vardhman Acrylics Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vardhman Acrylics Ltd:
    1. Net Profit Margin: 7.70%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.15% (Industry Average ROCE: 0%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 112.69
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.30
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 32.7 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Vardhman Acrylics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE