Vardhman Polytex Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:38 am

Market Cap	585 Cr.
Current Price	13.4
High / Low	14.3/5.72
Stock P/E
Book Value	10.4
Dividend Yield	0.00 %
ROCE	%
ROE	%
Face Value	1.00
PEG Ratio	0.00

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Hisar Spinning Mills Ltd	25.9 Cr.	69.2	84.0/40.0	11.5	62.4	0.00 %	12.5 %	9.50 %	10.0
Rudra Ecovation Ltd	601 Cr.	57.2	82.6/29.1	1,430	9.01	0.00 %	1.92 %	4.05 %	1.00
H P Cotton Textile Mills Ltd	50.3 Cr.	128	194/110		38.5	0.00 %	4.39 %	6.57 %	10.0
Gujarat Hy-Spin Ltd	33.1 Cr.	19.8	20.7/8.50	31.2	11.2	0.00 %	4.31 %	0.90 %	10.0
Gem Spinners India Ltd	57.4 Cr.	9.35	10.6/3.27		0.31	0.00 %	9.62 %	%	5.00
Industry Average	3,498.96 Cr	217.99		99.19	126.10	0.29%	32.92%	11.11%	7.40

All Competitor Stocks of

Quarterly Result

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Sales	193.91	191.52	215.02	244.00	278.06	258.35	101.05	92.97	163.14	135.53	100.60	60.81	73.69
Expenses	176.13	173.87	198.75	231.99	264.83	255.65	106.58	111.14	178.39	138.70	120.85	78.33	74.65
Operating Profit	17.78	17.65	16.27	12.01	13.23	2.70	-5.53	-18.17	-15.25	-3.17	-20.25	-17.52	-0.96
OPM %	9.17%	9.22%	7.57%	4.92%	4.76%	1.05%	-5.47%	-19.54%	-9.35%	-2.34%	-20.13%	-28.81%	-1.30%
Other Income	0.64	0.60	1.09	0.78	0.61	2.12	26.69	51.59	22.95	19.79	1.79	2.87	4.52
Interest	16.05	15.21	15.76	15.82	17.36	12.01	14.78	13.93	12.69	12.83	12.96	-22.58	0.14
Depreciation	3.55	3.49	3.48	3.44	3.25	3.21	3.11	2.97	2.90	2.74	2.65	2.62	2.47
Profit before tax	-1.18	-0.45	-1.88	-6.47	-6.77	-10.40	3.27	16.52	-7.89	1.05	-34.07	5.31	0.95
Tax %	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Net Profit	-1.18	-0.45	-1.88	-6.46	-6.77	-10.41	3.27	16.52	-7.89	1.05	-34.07	5.31	0.95
EPS in Rs	-0.05	-0.02	-0.08	-0.29	-0.30	-0.47	0.15	0.74	-0.35	0.05	-1.40	0.19	0.03

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	784	921	941	876	859	618	808	560	507	928	615	376	299
Expenses	699	829	878	814	792	659	807	560	493	868	651	418	347
Operating Profit	85	92	63	62	66	-41	1	-0	14	59	-36	-42	-48
OPM %	11%	10%	7%	7%	8%	-7%	0%	-0%	3%	6%	-6%	-11%	-16%
Other Income	9	20	-12	50	14	-295	3	177	3	3	103	29	14
Interest	63	75	76	74	60	68	60	60	59	64	53	3	-5
Depreciation	37	33	32	28	21	21	18	16	15	14	12	10	10
Profit before tax	-5	3	-58	9	-1	-424	-74	102	-57	-16	2	-27	-39
Tax %	-123%	-44%	-50%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Net Profit	1	5	-29	9	-1	-424	-74	102	-57	-16	1	-27	-39
EPS in Rs	0.05	0.19	-0.99	0.31	-0.02	-14.57	-2.55	3.50	-1.95	-0.53	0.05	-0.75	-1.19
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	400.00%	-680.00%	131.03%	-111.11%	-42300.00%	82.55%	237.84%	-155.88%	71.93%	106.25%	-2800.00%
Change in YoY Net Profit Growth (%)	0.00%	-1080.00%	811.03%	-242.15%	-42188.89%	42382.55%	155.29%	-393.72%	227.81%	34.32%	-2906.25%

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:	-9%
5 Years:	-14%
3 Years:	-10%
TTM:	-47%

Compounded Profit Growth
10 Years:	%
5 Years:	7%
3 Years:	7%
TTM:	96%

Stock Price CAGR
10 Years:	10%
5 Years:	118%
3 Years:	76%
1 Year:	128%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	%
Last Year:	%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:30 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	18	20	22	22	22	22	22	22	22	22	22	27	27
Reserves	84	109	106	85	85	-339	-414	-313	-370	-386	-385	-388	-399
Borrowings	498	465	451	405	396	448	446	490	523	529	447	76	69
Other Liabilities	85	121	118	115	122	264	269	113	130	161	206	560	553
Total Liabilities	685	715	697	627	626	395	324	313	306	326	291	276	250
Fixed Assets	295	283	258	239	244	229	211	195	182	170	159	130	122
CWIP	14	8	4	7	5	3	0	0	0	0	0	0	0
Investments	137	137	92	92	92	0	0	0	0	0	0	0	0
Other Assets	239	287	344	290	285	163	112	117	123	156	133	146	128
Total Assets	685	715	697	627	626	395	324	313	306	326	291	276	250

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	72	62	76	108	76	49	63	13	24	61	40	-14
Cash from Investing Activity +	-1	-11	1	-7	-20	-5	-1	0	-1	-1	-1	26
Cash from Financing Activity +	-49	-64	-79	-104	-55	-50	-64	-14	-23	-61	-39	-12
Net Cash Flow	22	-13	-2	-4	1	-5	-1	-0	-0	0	0	1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-413.00	-373.00	-388.00	-343.00	-330.00	-489.00	-445.00	-490.00	-509.00	-470.00	-483.00	-118.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	26	26	20	31	33	16	4	4	6	4	0	0
Inventory Days	37	55	77	44	47	32	12	18	19	23	11	19
Days Payable	35	39	38	39	42	31	26	53	74	54	99	209
Cash Conversion Cycle	29	42	59	36	38	18	-10	-31	-49	-26	-88	-190
Working Capital Days	3	10	28	13	11	-139	-97	-40	-54	-25	-81	-137
ROCE %	9%	13%	9%	15%	12%	-18%	-16%	-10%	1%	28%	-34%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Oct 2024
Promoters	60.16%	60.16%	60.16%	60.16%	60.16%	60.16%	55.21%	49.14%	49.14%	49.14%	49.14%	37.67%
FIIs	1.49%	1.81%	1.83%	1.96%	2.82%	1.52%	1.40%	0.65%	0.38%	0.24%	0.32%	0.30%
DIIs	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Public	38.34%	38.02%	38.00%	37.87%	37.02%	38.31%	43.40%	50.20%	50.47%	50.62%	50.53%	62.03%
No. of Shareholders	16,344	16,467	16,429	16,437	16,085	14,752	13,825	13,529	13,371	19,674	23,189	23,804

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 22	Mar 21	Mar 20	Mar 19	Mar 18
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	-6.96	-25.43	45.68	-33.20	-77.00
Diluted EPS (Rs.)	-6.96	-25.43	45.68	-33.20	-77.00
Cash EPS (Rs.)	-0.80	-18.86	52.73	-24.91	-63.50
Book Value[Excl.RevalReserv]/Share (Rs.)	-163.10	-156.34	-130.51	-175.60	-105.53
Book Value[Incl.RevalReserv]/Share (Rs.)	-163.10	-156.34	-130.51	-175.60	-105.53
Revenue From Operations / Share (Rs.)	416.66	228.13	251.61	363.15	287.10
PBDIT / Share (Rs.)	27.98	7.62	1.30	1.86	-25.65
PBIT / Share (Rs.)	21.83	1.04	-5.75	-6.38	-39.04
PBT / Share (Rs.)	-6.95	-25.43	45.69	-33.14	-76.89
Net Profit / Share (Rs.)	-6.96	-25.43	45.68	-33.14	-76.89
NP After MI And SOA / Share (Rs.)	-6.96	-25.43	45.68	-33.14	-76.89
PBDIT Margin (%)	6.71	3.33	0.51	0.51	-8.93
PBIT Margin (%)	5.23	0.45	-2.28	-1.75	-13.59
PBT Margin (%)	-1.66	-11.14	18.15	-9.12	-26.78
Net Profit Margin (%)	-1.66	-11.14	18.15	-9.12	-26.78
NP After MI And SOA Margin (%)	-1.66	-11.14	18.15	-9.12	-26.78
Return on Networth / Equity (%)	0.00	0.00	-35.00	0.00	0.00
Return on Capital Employeed (%)	-13.49	-0.67	4.49	3.69	-429.63
Return On Assets (%)	-4.75	-18.55	32.94	-22.84	-33.46
Long Term Debt / Equity (X)	0.00	0.00	-0.01	-0.01	-1.02
Total Debt / Equity (X)	-1.45	-1.50	-1.68	-1.14	-2.11
Asset Turnover Ratio (%)	2.94	1.65	1.77	1.94	1.18
Current Ratio (X)	0.13	0.08	0.08	0.07	0.21
Quick Ratio (X)	0.07	0.05	0.04	0.04	0.12
Inventory Turnover Ratio (X)	22.61	18.48	20.50	18.06	6.44
Interest Coverage Ratio (X)	0.97	0.28	0.04	0.06	-0.69
Interest Coverage Ratio (Post Tax) (X)	0.75	0.03	-0.21	-0.23	-1.06
Enterprise Value (Cr.)	583.32	560.43	498.18	465.14	547.10
EV / Net Operating Revenue (X)	0.62	1.10	0.88	0.57	0.85
EV / EBITDA (X)	9.35	33.01	171.97	112.28	-9.55
MarketCap / Net Operating Revenue (X)	0.05	0.07	0.01	0.02	0.06
Price / BV (X)	-0.14	-0.10	-0.03	-0.05	-0.17
Price / Net Operating Revenue (X)	0.05	0.07	0.01	0.02	0.06
EarningsYield	-0.28	-1.48	11.09	-3.68	-4.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 23.87

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 December 22, 2024, is Undervalued by 78.13% compared to the current share price 13.40

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value of as of December 22, 2024 is: 26.73

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 December 22, 2024, is Undervalued by 99.48% compared to the current share price 13.40

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 11.97%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -42.33, which is a positive sign. The stock has a low average Cash Conversion Cycle of -14.33, which is a positive sign.	The stock has a low average ROCE of 0.75%, which may not be favorable. The company has higher borrowings (403.31) compared to reserves (-194.23), which may suggest financial risk. The company has not shown consistent growth in sales (699.38) and profit (-45.00).

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 :
1. Net Profit Margin: -1.66%
  - 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: -13.49% (Industry Average ROCE: 32.92%)
  - 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%: 0% (Industry Average ROE: 11.11%)
  - 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): 0.75
  - 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: 0.07
  - 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: 0 (Industry average Stock P/E: 99.19)
  - 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: -1.45
  - 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 Polytex Ltd. is a Public Limited Listed company incorporated on 20/08/1980 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L17122PB1980PLC004242 and registration number is 004242. Currently Company is involved in the business activities of Spinning, weaving and finishing of textiles. Company’s Total Operating Revenue is Rs. 928.60 Cr. and Equity Capital is Rs. 22.29 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Textiles - Spinning - Cotton Blended	Vardhman Park, Chandigarh Road, Ludhiana Punjab 141123	info@vpl.in http://www.vpl.in

Management
Name	Position Held
Mr. Adish Oswal	Chairman & Managing Director
Mrs. Manju Oswal	Director
Mr. Suresh Kumar Banka	Director
Mr. Sagar Bhatia	Independent Director
Mrs. Sanchi Taneja	Independent Director
Mr. Rohit Jain	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹23.87, which is 78.13% higher than the current market price of ₹13.40. The stock has a market capitalization of 585 Cr. and recorded a high/low of 14.3/5.72 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹-399 Cr and total liabilities of ₹250 Cr.

What is the Market Cap of ?

The Market Cap of is 585 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 13.4.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 14.3/5.72.

What is the Stock P/E of ?

The Stock P/E of is .

What is the Book Value of ?

The Book Value of is 10.4.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is %.

What is the ROE of ?

The ROE of is %.

What is the Face Value of ?

The Face Value of is 1.00.