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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 514175 | NSE: VARDMNPOLY

Fundamental Analysis of Vardhman Polytex Ltd

About the Company - Vardhman Polytex Ltd

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.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton BlendedVardhman Park, Chandigarh Road, Ludhiana Punjab 141123info@vpl.in
http://www.vpl.in
Management
NamePosition Held
Mr. Adish OswalChairman & Managing Director
Mrs. Manju OswalDirector
Mr. Suresh Kumar BankaDirector
Mr. Sandeep MehtaIndependent Director
Mr. Sanjeev JoshiIndependent Director
Mr. Sagar BhatiaIndependent Director
Mrs. Sanchi TanejaIndependent Director

Vardhman Polytex Ltd. Share Price Update

Share PriceValue
Today₹70.59
Previous Day₹69.03

Basic Stock Data of Vardhman Polytex Ltd

Market Cap 186 Cr.
Current Price 68.0
High / Low74.0/18.8
Stock P/E
Book Value 138
Dividend Yield0.00 %
ROCE33.7 %
ROE%
Face Value 10.0

Data Source: screener.in

Competitors of Vardhman Polytex Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nitin Spinners Ltd 2,054 Cr. 365395/20415.7 1910.69 %11.9 %17.2 % 10.0
Suryalakshmi Cotton Mills Ltd 152 Cr. 81.089.5/43.418.5 1410.00 %10.3 %5.91 % 10.0
Aananda Lakshmi Spinning Mills Ltd 7.93 Cr. 22.622.6/7.141.48 55.10.00 %33.8 %% 10.0
Maral Overseas Ltd 331 Cr. 79.7102/44.2 30.00.00 %0.95 %10.6 % 10.0
Mohini Health & Hygiene Ltd 109 Cr. 59.597.0/45.615.9 52.00.00 %12.1 %7.92 % 10.0
Industry Average530.79 Cr121.5610.3293.820.14%13.81%8.33%10.00

Vardhman Polytex Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales12115119419221524427825810193163136101
Expenses121151176174199232265256107111178139121
Operating Profit-0-018181612133-6-18-15-3-20
OPM %-0%-0%9%9%8%5%5%1%-5%-20%-9%-2%-20%
Other Income11111112275223202
Interest17111615161617121514131313
Depreciation4443333333333
Profit before tax-20-14-1-0-2-6-7-10317-81-34
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-20-14-1-0-2-6-7-10317-81-34
EPS in Rs-8.82-6.42-0.53-0.20-0.84-2.90-3.04-4.671.477.41-3.540.47-14.03

Vardhman Polytex Ltd Quarterly Chart

Vardhman Polytex Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales748784921941876859618808560507928615492
Expenses772699829878814792659807560493868651549
Operating Profit-248592636266-411-01459-36-57
OPM %-3%11%10%7%7%8%-7%0%-0%3%6%-6%-12%
Other Income20920-125014-29531773310396
Interest71637576746068606059645352
Depreciation30373332282121181615141211
Profit before tax-105-53-589-1-424-74102-57-162-24
Tax %22%123%-44%50%0%0%0%0%0%0%0%0%
Net Profit-8115-299-1-424-74102-57-161-24
EPS in Rs-50.120.662.41-12.924.05-0.30-190.16-33.3145.66-25.43-6.980.67-9.69
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Vardhman Polytex 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 (%)101.23%400.00%-680.00%131.03%-111.11%-42300.00%82.55%237.84%-155.88%71.93%106.25%
Change in YoY Net Profit Growth (%)0.00%298.77%-1080.00%811.03%-242.15%-42188.89%42382.55%155.29%-393.72%227.81%34.32%

Vardhman Polytex Ltd Growth

Compounded Sales Growth
10 Years:-2%
5 Years:0%
3 Years:3%
TTM:-37%
Compounded Profit Growth
10 Years:%
5 Years:4%
3 Years:-12%
TTM:24%
Stock Price CAGR
10 Years:8%
5 Years:48%
3 Years:36%
1 Year:243%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Vardhman Polytex Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital16182022222222222222222224
Reserves78841091068585-339-414-313-370-386-385-400
Borrowings492498465451405396448446490523529447451
Other Liabilities6585121118115122264269113130161206208
Total Liabilities650685715697627626395324313306326291283
Fixed Assets318295283258239244229211195182170159150
CWIP221484753000000
Investments1371371379292920000000
Other Assets174239287344290285163112117123156133133
Total Assets650685715697627626395324313306326291283

Vardhman Polytex Ltd Reserves and Borrowings Chart

Vardhman Polytex Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 17772627610876496313246140
Cash from Investing Activity -98-1-111-7-20-5-10-1-1-1
Cash from Financing Activity -96-49-64-79-104-55-50-64-14-23-61-39
Net Cash Flow-1822-13-2-41-5-1-0-000

Vardhman Polytex Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days2326262031331644640
Inventory Days193755774447321218192311
Days Payable183539383942312653745499
Cash Conversion Cycle24294259363818-10-31-49-26-88
Working Capital Days-10310281311-139-97-40-54-25-81
ROCE %-8%9%13%9%15%12%-18%-16%-10%1%28%-34%

Vardhman Polytex Ltd Financial Efficiency Indicators Chart

Vardhman Polytex Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters60.18%60.18%60.18%60.18%60.16%60.16%60.16%60.16%60.16%60.16%55.21%49.14%
FIIs1.15%1.15%1.15%1.15%1.49%1.81%1.83%1.96%2.82%1.52%1.40%0.65%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public38.66%38.66%38.66%38.66%38.34%38.02%38.00%37.87%37.02%38.31%43.40%50.20%
No. of Shareholders16,67316,78616,66416,34916,34416,46716,42916,43716,08514,75213,82513,529

Vardhman Polytex Ltd Shareholding Pattern Chart

No. of Vardhman Polytex Ltd Shareholders

This stock is not held by any mutual fund

Vardhman Polytex Ltd ROCE Trend

Vardhman Polytex Ltd EPS Trend

Vardhman Polytex Ltd Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-6.96-25.4345.68-33.20-77.00
Diluted EPS (Rs.)-6.96-25.4345.68-33.20-77.00
Cash EPS (Rs.)-0.80-18.8652.73-24.91-63.50
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.)416.66228.13251.61363.15287.10
PBDIT / Share (Rs.)27.987.621.301.86-25.65
PBIT / Share (Rs.)21.831.04-5.75-6.38-39.04
PBT / Share (Rs.)-6.95-25.4345.69-33.14-76.89
Net Profit / Share (Rs.)-6.96-25.4345.68-33.14-76.89
NP After MI And SOA / Share (Rs.)-6.96-25.4345.68-33.14-76.89
PBDIT Margin (%)6.713.330.510.51-8.93
PBIT Margin (%)5.230.45-2.28-1.75-13.59
PBT Margin (%)-1.66-11.1418.15-9.12-26.78
Net Profit Margin (%)-1.66-11.1418.15-9.12-26.78
NP After MI And SOA Margin (%)-1.66-11.1418.15-9.12-26.78
Return on Networth / Equity (%)0.000.00-35.000.000.00
Return on Capital Employeed (%)-13.49-0.674.493.69-429.63
Return On Assets (%)-4.75-18.5532.94-22.84-33.46
Long Term Debt / Equity (X)0.000.00-0.01-0.01-1.02
Total Debt / Equity (X)-1.45-1.50-1.68-1.14-2.11
Asset Turnover Ratio (%)2.941.651.771.941.18
Current Ratio (X)0.130.080.080.070.21
Quick Ratio (X)0.070.050.040.040.12
Inventory Turnover Ratio (X)22.6118.4820.5018.066.44
Interest Coverage Ratio (X)0.970.280.040.06-0.69
Interest Coverage Ratio (Post Tax) (X)0.750.03-0.21-0.23-1.06
Enterprise Value (Cr.)583.32560.43498.18465.14547.10
EV / Net Operating Revenue (X)0.621.100.880.570.85
EV / EBITDA (X)9.3533.01171.97112.28-9.55
MarketCap / Net Operating Revenue (X)0.050.070.010.020.06
Price / BV (X)-0.14-0.10-0.03-0.05-0.17
Price / Net Operating Revenue (X)0.050.070.010.020.06
EarningsYield-0.28-1.4811.09-3.68-4.21

Vardhman Polytex Ltd Profitability Ratios (%)

Vardhman Polytex Ltd Liquidity Ratios

Vardhman Polytex Ltd Liquidity Ratios (%)

Vardhman Polytex Ltd Interest Coverage Ratios (X)

Vardhman Polytex Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vardhman Polytex Ltd

Fair Value: ₹316.71

The stock is undervalued by 365.75% compared to the current price ₹68

*Investments are subject to market risks

Strength and Weakness of Vardhman Polytex Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -31.75, which is a positive sign.
  1. The stock is trading at a high valuation with an average P/B ratio of -5.66 and average Dividend Yield of -2.39%.
  2. The stock has a low average ROCE of 0.08%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 3.50, which may not be favorable.
  4. The company has higher borrowings (464.69) compared to reserves (-158.46), which may suggest financial risk.
  5. The company has not shown consistent growth in sales (740.38) and profit (-50.77).

Should I Buy Vardhman Polytex Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vardhman Polytex Ltd:
    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: 14.35%)
      • 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): 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.
    4. 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.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 15.1)
      • 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: -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 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 Polytex 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