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

Fundamental Analysis of Vardhman Holdings Ltd

About the Company - Vardhman Holdings Ltd

Vardhman Holdings Ltd. is a Public Limited Listed company incorporated on 27/12/1962 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L17111PB1962PLC002463 and registration number is 002463. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 114.98 Cr. and Equity Capital is Rs. 3.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsVardhman Premises, Ludhiana Punjab 141010secretarial.lud@vardhman.com
https://www.vardhman.com
Management
NamePosition Held
Mr. Shri Paul OswalChairman & Managing Director
Mrs. Shakun OswalDirector
Mr. Sachit JainDirector
Mrs. Suchita JainDirector
Mr. Vikas KumarDirector
Ms. Pooja MehtaIndependent Director
Mr. Manjul PahwaIndependent Director
Mr. Sanjeev JainIndependent Director
Mr. Devendrabhushan JainIndependent Director
Mr. Rajeev Kumar MittalIndependent Director

Vardhman Holdings Ltd. Share Price Update

Share PriceValue
Today₹3,154.00
Previous Day₹3,184.95

Basic Stock Data of Vardhman Holdings Ltd

Market Cap 1,022 Cr.
Current Price 3,205
High / Low3,788/2,411
Stock P/E5.11
Book Value 10,060
Dividend Yield0.16 %
ROCE7.66 %
ROE7.77 %
Face Value 10.0

Data Source: screener.in

Competitors of Vardhman Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Transwarranty Finance Ltd 56.9 Cr. 11.615.5/7.55 5.770.00 %5.49 %41.5 % 10.0
Ujjivan Financial Services Ltd 6,532 Cr. 536615/2337.93 2990.92 %10.3 %32.1 % 10.0
Cholamandalam Investment & Finance Company Ltd 93,513 Cr. 1,1141,310/71029.2 1880.18 %9.72 %20.4 % 2.00
Paisalo Digital Ltd 7,595 Cr. 169175/42.045.8 27.80.03 %11.4 %8.92 % 1.00
5Paisa Capital Ltd 1,777 Cr. 570759/27028.2 1610.00 %12.4 %10.6 % 10.0
Industry Average21,894.78 Cr480.1222.23136.310.23%9.86%22.70%6.60

Vardhman Holdings Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8-38314106524-5630
Expenses0010011111201
Operating Profit8-3721495314-7530
OPM %95%85%84%97%87%86%74%68%83%92%98%
Other Income1647698713311891915730464039
Interest0000000000000
Depreciation0000000000000
Profit before tax2444768914712796945933394569
Tax %5%-0%2%0%7%14%2%1%-3%0%-6%3%10%
Net Profit2344758913710994946133414462
EPS in Rs71.82137.90235.09279.87430.24340.72293.72294.60189.60103.71127.87137.21194.05

Vardhman Holdings Ltd Quarterly Chart

Vardhman Holdings Ltd Profit & Loss

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1370289122033635
Expenses423362344
Operating Profit96825671830232
OPM %72%97%89%68%53%89%91%26%90%
Other Income151242157196155116429223154
Interest000000000
Depreciation000000000
Profit before tax160310181202161133459225186
Tax %1%2%1%0%1%3%7%-2%
Net Profit159303179202160130429228180
EPS in Rs496.88950.05559.83632.40500.42405.801,344.45715.74562.84
Dividend Payout %1%1%1%1%0%1%0%1%

Vardhman Holdings Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)90.57%-40.92%12.85%-20.79%-18.75%230.00%-46.85%
Change in YoY Net Profit Growth (%)0.00%-131.49%53.77%-33.64%2.04%248.75%-276.85%

Vardhman Holdings Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:-27%
3 Years:-22%
TTM:122%
Compounded Profit Growth
10 Years:%
5 Years:5%
3 Years:13%
TTM:-29%
Stock Price CAGR
10 Years:21%
5 Years:9%
3 Years:31%
1 Year:19%
Return on Equity
10 Years:%
5 Years:10%
3 Years:10%
Last Year:8%

Vardhman Holdings Ltd Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital333333333
Reserves1,2441,5451,8191,9942,1222,3032,7743,0963,207
Borrowings000000000
Other Liabilities253542113
Total Liabilities1,2491,5531,8252,0032,1302,3072,7783,1013,214
Fixed Assets113333333
CWIP000000000
Investments1,2401,5061,7761,9521,9792,1672,7383,0653,159
Other Assets9464648147137363252
Total Assets1,2491,5531,8252,0032,1302,3072,7783,1013,214

Vardhman Holdings Ltd Reserves and Borrowings Chart

Vardhman Holdings Ltd Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -3426-9582-51
Cash from Investing Activity 360-399-10-692
Cash from Financing Activity -1-2-2-2-0-2-2
Net Cash Flow101272-752

Vardhman Holdings Ltd Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days00000000
Inventory Days
Days Payable
Cash Conversion Cycle00000000
Working Capital Days8219441192,90837298569
ROCE %22%11%11%8%6%18%8%

Vardhman Holdings Ltd Financial Efficiency Indicators Chart

Vardhman Holdings Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.90%74.90%74.90%74.90%74.90%74.90%74.90%74.90%74.90%74.90%74.90%74.90%
FIIs2.99%2.99%3.00%1.51%0.06%0.05%0.04%0.04%0.04%0.03%0.03%0.03%
DIIs1.04%0.99%0.99%0.96%0.96%0.96%0.96%0.96%0.96%0.96%0.96%0.97%
Public21.07%21.12%21.11%22.63%24.08%24.09%24.11%24.10%24.09%24.10%24.10%24.10%
No. of Shareholders8,1618,3078,4848,4159,6739,6939,8989,7289,5929,4269,2769,097

Vardhman Holdings Ltd Shareholding Pattern Chart

No. of Vardhman Holdings Ltd Shareholders

This stock is not held by any mutual fund

Vardhman Holdings Ltd ROCE Trend

Vardhman Holdings Ltd EPS Trend

Vardhman Holdings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)715.751344.43405.80500.43632.39
Diluted EPS (Rs.)715.751344.43405.80500.43632.39
Cash EPS (Rs.)21.644.6347.1720.3822.82
Book Value[Excl.RevalReserv]/Share (Rs.)9709.308698.277222.766658.566256.96
Book Value[Incl.RevalReserv]/Share (Rs.)9709.308698.277222.766658.566256.96
Revenue From Operations / Share (Rs.)18.43103.6561.9838.9528.34
PBDIT / Share (Rs.)10.6499.8358.7724.5623.40
PBIT / Share (Rs.)10.6299.8158.7424.5323.38
PBT / Share (Rs.)10.6299.8158.7424.5323.38
Net Profit / Share (Rs.)21.624.6047.1420.3522.79
NP After MI And SOA / Share (Rs.)715.551344.06405.69500.30632.22
PBDIT Margin (%)57.7296.3194.8263.0482.59
PBIT Margin (%)57.6096.2994.7862.9782.49
PBT Margin (%)57.6096.2994.7862.9782.49
Net Profit Margin (%)117.274.4376.0652.2480.43
NP After MI And SOA Margin (%)3881.931296.72654.591284.262231.18
Return on Networth / Equity (%)7.3615.455.617.5110.10
Return on Capital Employeed (%)0.101.140.810.360.37
Return On Assets (%)7.3615.445.617.4910.07
Asset Turnover Ratio (%)0.000.070.010.030.02
Current Ratio (X)22854.2014980.932786.68618.525957.65
Quick Ratio (X)22854.2014980.932786.68618.525957.65
Dividend Payout Ratio (NP) (%)0.000.370.000.990.79
Dividend Payout Ratio (CP) (%)0.000.370.000.990.79
Earning Retention Ratio (%)0.0099.630.0099.0199.21
Cash Earning Retention Ratio (%)0.0099.630.0099.0199.21
Enterprise Value (Cr.)815.351164.42489.85293.68671.58
EV / Net Operating Revenue (X)138.5635.1924.7623.6174.24
EV / EBITDA (X)240.0436.5426.1137.4689.89
MarketCap / Net Operating Revenue (X)139.2435.2728.6224.0074.50
Retention Ratios (%)0.0099.620.0099.0099.20
Price / BV (X)0.260.420.240.140.33
Price / Net Operating Revenue (X)139.2535.2728.6224.0074.50
EarningsYield0.270.360.220.530.29

Vardhman Holdings Ltd Profitability Ratios (%)

Vardhman Holdings Ltd Liquidity Ratios

Vardhman Holdings Ltd Liquidity Ratios (%)

Vardhman Holdings Ltd Interest Coverage Ratios (X)

Vardhman Holdings Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vardhman Holdings Ltd

Fair Value: ₹4000.68

The stock is undervalued by 24.83% compared to the current price ₹3205

*Investments are subject to market risks

Strength and Weakness of Vardhman Holdings Ltd

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of 0.00, which is a positive sign.
  2. The company has higher reserves (2,233.78 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (25.11 cr) and profit (224.11 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 43.42 and average Dividend Yield of 78.83%.
  2. The stock has a low average ROCE of 10.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 172.13, which may not be favorable.

Should I Buy Vardhman Holdings Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vardhman Holdings Ltd:
    1. Net Profit Margin: 117.27%
      • 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: 0.10% (Industry Average ROCE: 9.86%)
      • 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): N/A
      • 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: 22854.20
      • 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: 5.11 (Industry average Stock P/E: 22.23)
      • 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: N/A
      • 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 Holdings 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