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Last Updated on: 05 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Vardhman Acrylics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 4, 2024, 9:17 pm

Market Cap 440 Cr.
Current Price 54.7
High / Low74.9/49.9
Stock P/E26.2
Book Value 29.0
Dividend Yield3.65 %
ROCE8.89 %
ROE7.23 %
Face Value 10.0
PEG Ratio-2.02

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Vardhman Acrylics Ltd

Competitors of Vardhman Acrylics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vardhman Acrylics Ltd 440 Cr. 54.774.9/49.926.2 29.03.65 %8.89 %7.23 % 10.0
Industry Average440.00 Cr54.7026.2029.003.65%8.89%7.23%10.00

All Competitor Stocks of Vardhman Acrylics Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales47.4662.79105.05102.42122.19118.60108.1880.6080.8086.4161.8968.3857.05
Expenses36.7758.3890.98108.35105.43111.0596.7377.3982.3081.0957.0263.8254.91
Operating Profit10.694.4114.07-5.9316.767.5511.453.21-1.505.324.874.562.14
OPM %22.52%7.02%13.39%-5.79%13.72%6.37%10.58%3.98%-1.86%6.16%7.87%6.67%3.75%
Other Income0.000.000.000.000.002.913.673.313.543.952.963.584.09
Interest0.060.110.120.100.090.060.070.070.060.070.030.130.06
Depreciation1.351.361.371.341.361.381.391.361.401.421.461.360.73
Profit before tax9.282.9412.58-7.3715.319.0213.665.090.587.786.346.655.44
Tax %17.35%16.67%20.59%-24.69%23.51%23.73%24.30%22.99%20.69%20.57%11.67%20.45%20.22%
Net Profit7.672.459.99-5.5511.716.8810.343.920.466.185.605.294.34
EPS in Rs0.950.301.24-0.691.460.861.290.490.060.770.700.660.54

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:17 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales436468498448368327392334280303427297274
Expenses394418465403331295364308232294390284257
Operating Profit4250344438312827489361317
OPM %10%11%7%10%10%10%7%8%17%3%8%5%6%
Other Income8211622252125271514131415
Interest1100010010000
Depreciation111154555555565
Profit before tax38594562574747485717432126
Tax %36%26%25%34%28%17%26%3%25%16%24%18%
Net Profit24443341413934464315331821
EPS in Rs2.584.703.594.385.124.804.295.765.341.814.092.182.67
Dividend Payout %0%0%28%114%29%42%58%0%0%1,380%61%92%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)83.33%-25.00%24.24%0.00%-4.88%-12.82%35.29%-6.52%-65.12%120.00%-45.45%
Change in YoY Net Profit Growth (%)0.00%-108.33%49.24%-24.24%-4.88%-7.94%48.11%-41.82%-58.59%185.12%-165.45%

Vardhman Acrylics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-4%
5 Years:-5%
3 Years:2%
TTM:-28%
Compounded Profit Growth
10 Years:-7%
5 Years:-13%
3 Years:-26%
TTM:-20%
Stock Price CAGR
10 Years:10%
5 Years:9%
3 Years:-1%
1 Year:0%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:8%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital959393938080808080808080
Reserves165208228225215239253275318132165163
Borrowings421111110301
Other Liabilities558210877127921199686879784
Total Liabilities319385430395423413453453485302342328
Fixed Assets867572615855526459565456
CWIP032000000040
Investments135194263256248260284160232134172169
Other Assets98113927811799118229194112112103
Total Assets319385430395423413453453485302342328

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2443552342326439-9398
Cash from Investing Activity 3-44-5843307-880-83190-3712
Cash from Financing Activity -20-5-1-68-63-15-20-24-1-198-3-20
Net Cash Flow7-6-3-28-5-261-44-17-10

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow38.0048.0033.0043.0037.0030.0027.0026.0048.006.0036.0012.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2812523151020131120
Inventory Days72786362123859492139121108141
Days Payable3145603710066848389757081
Cash Conversion Cycle43415272841242069594980
Working Capital Days4232-212-5114-121321526
ROCE %15%18%12%19%19%15%14%14%15%6%19%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%
FIIs0.00%0.00%0.00%0.00%0.38%0.14%0.13%0.13%0.14%0.13%0.16%0.18%
DIIs0.19%0.36%0.45%0.37%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public24.83%24.67%24.58%24.66%24.64%24.89%24.90%24.90%24.89%24.90%24.87%24.85%
No. of Shareholders22,39624,25625,14427,28528,08729,18529,20429,05028,15228,76129,29228,732

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.184.091.815.345.76
Diluted EPS (Rs.)2.184.091.815.345.76
Cash EPS (Rs.)2.884.772.486.016.41
Book Value[Excl.RevalReserv]/Share (Rs.)30.2330.5326.4249.5744.23
Book Value[Incl.RevalReserv]/Share (Rs.)30.2330.5326.4249.5744.23
Dividend / Share (Rs.)0.002.5025.000.000.00
Revenue From Operations / Share (Rs.)37.0253.0937.7434.8741.61
PBDIT / Share (Rs.)3.396.082.897.856.64
PBIT / Share (Rs.)2.695.402.227.175.99
PBT / Share (Rs.)2.665.362.177.115.95
Net Profit / Share (Rs.)2.184.091.815.345.76
PBDIT Margin (%)9.1611.457.6622.5015.96
PBIT Margin (%)7.2710.175.8720.5714.40
PBT Margin (%)7.1710.105.7420.3814.31
Net Profit Margin (%)5.897.704.7915.3113.83
Return on Networth / Equity (%)7.2113.396.8510.7713.01
Return on Capital Employeed (%)8.6417.158.0814.0813.13
Return On Assets (%)5.359.604.818.8410.20
Total Debt / Equity (X)0.000.000.010.000.00
Asset Turnover Ratio (%)0.881.320.770.590.73
Current Ratio (X)2.332.232.314.913.53
Quick Ratio (X)1.371.301.374.072.83
Inventory Turnover Ratio (X)2.473.473.362.673.47
Dividend Payout Ratio (NP) (%)0.000.001379.910.000.00
Dividend Payout Ratio (CP) (%)0.000.001005.820.000.00
Earning Retention Ratio (%)0.000.00-1279.910.000.00
Cash Earning Retention Ratio (%)0.000.00-905.820.000.00
Interest Coverage Ratio (X)94.03166.1459.53118.92179.92
Interest Coverage Ratio (Post Tax) (X)61.48112.6938.3081.94156.93
Enterprise Value (Cr.)407.40346.23429.38192.7391.80
EV / Net Operating Revenue (X)1.370.811.420.680.27
EV / EBITDA (X)14.947.0818.483.061.72
MarketCap / Net Operating Revenue (X)1.380.811.421.050.64
Retention Ratios (%)0.000.00-1279.910.000.00
Price / BV (X)1.691.422.030.730.60
Price / Net Operating Revenue (X)1.380.811.421.050.64
EarningsYield0.040.090.030.140.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vardhman Acrylics Ltd as of November 5, 2024 is: 56.94

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 5, 2024, Vardhman Acrylics Ltd is Undervalued by 4.10% compared to the current share price ₹54.70

Intrinsic Value of Vardhman Acrylics Ltd as of November 5, 2024 is: 49.57

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 5, 2024, Vardhman Acrylics Ltd is Overvalued by 9.38% compared to the current share price ₹54.70

Last 5 Year EPS CAGR: -12.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 15.58, which is a positive sign.
  2. The company has higher reserves (215.50 cr) compared to borrowings (1.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (373.23 cr) and profit (43.62 cr) over the years.
  1. The stock has a low average ROCE of 14.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 40.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Vardhman Acrylics Ltd:
    1. Net Profit Margin: 5.89%
      • 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: 8.64% (Industry Average ROCE: 8.89%)
      • 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. ROE%: 7.21% (Industry Average ROE: 7.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 61.48
      • 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.
    5. Quick Ratio: 1.37
      • 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.
    6. Stock P/E: 26.2 (Industry average Stock P/E: 26.2)
      • 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.
    7. Total Debt / Equity: 0
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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, Chandigarh Road, Ludhiana Punjab 141010secretarial.lud@vardhman.com
http://www.vardhman.com
Management
NamePosition Held
Mr. Shri Paul OswalChairman
Mr. Bal Krishan ChoudharyVice Chairman
Mr. Sachit JainDirector
Mrs. Suchita JainDirector
Mr. Vivek GuptaWhole Time Director
Mr. Anil KumarIndependent Director
Ms. Parakh OswalIndependent Director
Mr. Bhooshan Lal UppalIndependent Director
Mr. Sandeep KapurIndependent Director
Mr. Sanjeev JainIndependent Director

FAQ

What is the latest fair value of Vardhman Acrylics Ltd?

The latest fair value of Vardhman Acrylics Ltd is ₹56.94.

What is the Market Cap of Vardhman Acrylics Ltd?

The Market Cap of Vardhman Acrylics Ltd is 440 Cr..

What is the current Stock Price of Vardhman Acrylics Ltd as on 05 November 2024?

The current stock price of Vardhman Acrylics Ltd as on 05 November 2024 is 54.7.

What is the High / Low of Vardhman Acrylics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vardhman Acrylics Ltd stocks is 74.9/49.9.

What is the Stock P/E of Vardhman Acrylics Ltd?

The Stock P/E of Vardhman Acrylics Ltd is 26.2.

What is the Book Value of Vardhman Acrylics Ltd?

The Book Value of Vardhman Acrylics Ltd is 29.0.

What is the Dividend Yield of Vardhman Acrylics Ltd?

The Dividend Yield of Vardhman Acrylics Ltd is 3.65 %.

What is the ROCE of Vardhman Acrylics Ltd?

The ROCE of Vardhman Acrylics Ltd is 8.89 %.

What is the ROE of Vardhman Acrylics Ltd?

The ROE of Vardhman Acrylics Ltd is 7.23 %.

What is the Face Value of Vardhman Acrylics Ltd?

The Face Value of Vardhman Acrylics Ltd is 10.0.

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