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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 514175 | NSE: VARDMNPOLY

Fundamental Analysis of Vardhman Polytex Ltd

Basic Stock Data

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

Market Cap 297 Cr.
Current Price 10.9
High / Low12.3/4.78
Stock P/E
Book Value 13.2
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 1.00
PEG Ratio0.00

Competitors of Vardhman Polytex Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Angel Fibers Ltd 60.0 Cr. 24.032.0/18.21,200 10.40.00 %4.78 %0.19 % 10.0
K P R Mill Ltd (KPRMILL) 30,129 Cr. 881928/61538.3 1280.57 %20.6 %19.5 % 1.00
Spentex Industries Ltd 25.1 Cr. 2.803.55/1.35 6.260.00 %75.2 %% 10.0
Patspin India Ltd 40.7 Cr. 13.218.6/10.2 7.720.00 %2.10 %% 10.0
Salona Cotspin Ltd 159 Cr. 303383/24826.0 1520.00 %8.31 %7.96 % 10.0
Industry Average2,905.80 Cr183.4981.94106.000.28%13.22%8.91%7.17

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales193.91191.52215.02244.00278.06258.35101.0592.97163.14135.53100.6060.8173.69
Expenses176.13173.87198.75231.99264.83255.65106.58111.14178.39138.70120.8578.3374.65
Operating Profit17.7817.6516.2712.0113.232.70-5.53-18.17-15.25-3.17-20.25-17.52-0.96
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 Income0.640.601.090.780.612.1226.6951.5922.9519.791.792.874.52
Interest16.0515.2115.7615.8217.3612.0114.7813.9312.6912.8312.96-22.580.14
Depreciation3.553.493.483.443.253.213.112.972.902.742.652.622.47
Profit before tax-1.18-0.45-1.88-6.47-6.77-10.403.2716.52-7.891.05-34.075.310.95
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-1.18-0.45-1.88-6.46-6.77-10.413.2716.52-7.891.05-34.075.310.95
EPS in Rs-0.05-0.02-0.08-0.29-0.30-0.470.150.74-0.350.05-1.400.190.03

Last Updated: June 9, 2024, 3:03 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 1:26 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales748784921941876859618808560507928615460
Expenses772699829878814792659807560493868651516
Operating Profit-248592636266-411-01459-36-56
OPM %-3%11%10%7%7%8%-7%0%-0%3%6%-6%-12%
Other Income20920-125014-29531773310347
Interest71637576746068606059645316
Depreciation30373332282121181615141211
Profit before tax-105-53-589-1-424-74102-57-162-36
Tax %22%123%-44%50%0%0%0%0%0%0%0%0%
Net Profit-8115-299-1-424-74102-57-161-36
EPS in Rs-5.010.070.24-1.290.40-0.03-19.02-3.334.57-2.54-0.700.07-1.51
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

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%

Growth

Compounded Sales Growth
10 Years:-9%
5 Years:-14%
3 Years:-10%
TTM:-40%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:15%
TTM:72%
Stock Price CAGR
10 Years:9%
5 Years:94%
3 Years:76%
1 Year:112%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: June 16, 2024, 4:48 pm

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

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

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-24.00-413.00-373.00-388.00-343.00-330.00-489.00-445.00-490.00-509.00-470.00-483.00

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 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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters60.18%60.18%60.18%60.16%60.16%60.16%60.16%60.16%60.16%55.21%49.14%49.14%
FIIs1.15%1.15%1.15%1.49%1.81%1.83%1.96%2.82%1.52%1.40%0.65%0.38%
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%38.34%38.02%38.00%37.87%37.02%38.31%43.40%50.20%50.47%
No. of Shareholders16,78616,66416,34916,34416,46716,42916,43716,08514,75213,82513,52913,371

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 30.29

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: 177.93% compared to the current price 10.9

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

Intrinsic Value: 20.48

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: 87.90% compared to the current price ₹10.9

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

Last 5 Year EPS CAGR: -32.39%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -31.75, which is a positive sign.
  1. The stock has a low average ROCE of 0.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 3.50, which may not be favorable.
  3. The company has higher borrowings (431.17) compared to reserves (-177.17), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (740.38) and profit (-50.77).

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 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: %)
      • 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%: 0.00% (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): 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: (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: -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

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

FAQ

What is the latest fair value of Vardhman Polytex Ltd?

The latest fair value of Vardhman Polytex Ltd is ₹30.29.

What is the Market Cap of Vardhman Polytex Ltd?

The Market Cap of Vardhman Polytex Ltd is 297 Cr..

What is the current Stock Price of Vardhman Polytex Ltd as on 24 June 2024?

The current stock price of Vardhman Polytex Ltd as on 24 June 2024 is ₹10.9.

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

In FY 2024, the High / Low of Vardhman Polytex Ltd stocks is 12.3/4.78.

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

The Stock P/E of Vardhman Polytex Ltd is .

What is the Book Value of Vardhman Polytex Ltd?

The Book Value of Vardhman Polytex Ltd is 13.2.

What is the Dividend Yield of Vardhman Polytex Ltd?

The Dividend Yield of Vardhman Polytex Ltd is 0.00 %.

What is the ROCE of Vardhman Polytex Ltd?

The ROCE of Vardhman Polytex Ltd is %.

What is the ROE of Vardhman Polytex Ltd?

The ROE of Vardhman Polytex Ltd is %.

What is the Face Value of Vardhman Polytex Ltd?

The Face Value of Vardhman Polytex Ltd is 1.00.

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