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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Vardhman Holdings Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:19 pm

Market Cap 1,085 Cr.
Current Price 3,400
High / Low3,788/2,425
Stock P/E5.85
Book Value 10,331
Dividend Yield0.14 %
ROCE6.07 %
ROE5.78 %
Face Value 10.0
PEG Ratio-34.65

Competitors of Vardhman Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Siel Financial Services Ltd 49.2 Cr. 43.443.4/8.40 4.790.00 %400 %% 10.0
Sundaram Finance Holdings Ltd 5,919 Cr. 266300/94.511.1 2162.12 %5.85 %12.8 % 5.00
Comfort Intech Ltd 294 Cr. 9.1912.3/4.2517.2 5.190.65 %6.51 %11.9 % 1.00
Welspun Investments & Commercials Ltd 261 Cr. 745935/34094.0 1,2520.00 %1.15 %0.86 % 10.0
Indostar Capital Finance Ltd 3,554 Cr. 262280/14130.7 2380.00 %8.35 %3.65 % 10.0
Industry Average9,158.64 Cr604.3663.871,182.020.35%16.35%25.18%7.59

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales8314106524-563080
Expenses1001111120103
Operating Profit721495314-75307-3
OPM %85%84%97%87%86%74%68%83%92%98%95%-3,786%
Other Income6987133118919157304640394728
Interest0000000000000
Depreciation0000000000000
Profit before tax7689147127969459333945695426
Tax %2%0%7%14%2%1%-3%0%-6%3%10%2%1%
Net Profit7589137109949461334144625426
EPS in Rs235.09279.87430.24340.72293.72294.60189.60103.71127.87137.21194.05167.9580.15

Last Updated: June 9, 2024, 4:34 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:19 am

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1370289122033638
Expenses423362343
Operating Profit96825671830235
OPM %72%97%89%68%53%89%91%26%92%
Other Income151242157196155116429223172
Interest000000000
Depreciation000000000
Profit before tax160310181202161133459225207
Tax %1%2%1%0%1%3%7%-2%
Net Profit159303179202160130429228200
EPS in Rs496.88950.05559.83632.40500.42405.801,344.45715.74627.08
Dividend Payout %1%1%1%1%0%1%0%1%

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%

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:18%
5 Years:8%
3 Years:22%
1 Year:15%
Return on Equity
10 Years:%
5 Years:10%
3 Years:10%
Last Year:8%

Last Updated: May 1, 2024, 12:20 pm

Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital333333333
Reserves1,2441,5451,8191,9942,1222,3032,7743,0963,207
Borrowings-0-0-0-0-0-0-0-0-0
Other Liabilities253542113
Total Liabilities1,2491,5531,8252,0032,1302,3072,7783,1013,214
Fixed Assets113333333
CWIP-0-0-0-0-0-0-0-0-0
Investments1,2401,5061,7761,9521,9792,1672,7383,0653,159
Other Assets9464648147137363252
Total Assets1,2491,5531,8252,0032,1302,3072,7783,1013,214

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

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow9.0068.0025.006.007.0018.0030.002.00

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 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%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 3,498.11

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.

Undervalued: 2.89% compared to the current price 3400

Intrinsic Value: 3,659.58

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 7.63% compared to the current price ₹3400

Last 5 Year EPS CAGR: 4.62%

*Investments are subject to market risks

Strength and Weakness

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 (2,243.44 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (25.44 cr) and profit (226.44 cr) over the years.
  1. The stock has a low average ROCE of 10.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 172.13, 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 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: %)
      • 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%: 7.36% (Industry Average ROE: %)
      • 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): 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.
    5. 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.
    6. ✗ Stock P/E: 5.85 (Industry average Stock P/E: )
      • 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: 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 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

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
Non-Banking Financial Company (NBFC)Vardhman 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

FAQ

What is the latest fair value of Vardhman Holdings Ltd?

The latest fair value of Vardhman Holdings Ltd is ₹3498.11.

What is the Market Cap of Vardhman Holdings Ltd?

The Market Cap of Vardhman Holdings Ltd is 1,085 Cr..

What is the current Stock Price of Vardhman Holdings Ltd as on 21 June 2024?

The current stock price of Vardhman Holdings Ltd as on 21 June 2024 is ₹3,400.

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

In FY 2024, the High / Low of Vardhman Holdings Ltd stocks is 3,788/2,425.

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

The Stock P/E of Vardhman Holdings Ltd is 5.85.

What is the Book Value of Vardhman Holdings Ltd?

The Book Value of Vardhman Holdings Ltd is 10,331.

What is the Dividend Yield of Vardhman Holdings Ltd?

The Dividend Yield of Vardhman Holdings Ltd is 0.14 %.

What is the ROCE of Vardhman Holdings Ltd?

The ROCE of Vardhman Holdings Ltd is 6.07 %.

What is the ROE of Vardhman Holdings Ltd?

The ROE of Vardhman Holdings Ltd is 5.78 %.

What is the Face Value of Vardhman Holdings Ltd?

The Face Value of Vardhman Holdings 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 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