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Last Updated: April 2, 2026, 3:54 am
Author: Getaka|Social: XLinkedIn

Vardhman Special Steels Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹246.47Undervalued by 10.03%vs CMP ₹224.00

P/E (20.1) × ROE (12.1%) × BV (₹125.00) × DY (1.34%)

₹166.04Overvalued by 25.88%vs CMP ₹224.00
MoS: -34.9% (Negative)Confidence: 58/100 (Moderate)Models: 2 Fair, 7 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹244.3722%Fair (+9.1%)
Graham NumberEarnings₹182.9416%Over (-18.3%)
Earnings PowerEarnings₹73.0813%Over (-67.4%)
DCFCash Flow₹112.5313%Over (-49.8%)
Net Asset ValueAssets₹124.987%Over (-44.2%)
EV/EBITDAEnterprise₹179.309%Over (-20%)
Earnings YieldEarnings₹119.007%Over (-46.9%)
ROCE CapitalReturns₹206.859%Fair (-7.7%)
Revenue MultipleRevenue₹182.515%Over (-18.5%)
Consensus (9 models)₹166.04100%Overvalued

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: -0.9%

*Investments are subject to market risks

Investment Snapshot

62
Vardhman Special Steels Ltd scores 62/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health81/100 · Strong
ROCE 16.5% GoodROE 12.1% GoodD/E 0.11 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money40/100 · Moderate
FII holding stable No changeDII holding down 0.87% MF sellingPromoter holding at 51.1% Stable
Earnings Quality50/100 · Moderate
OPM stable around 9% Steady
Quarterly Momentum58/100 · Moderate
Revenue (4Q): -3% YoY FlatProfit (4Q): +3% YoY Positive
Industry Rank65/100 · Strong
P/E 20.1 vs industry 37.9 Cheaper than peersROCE 16.5% vs industry 18.2% Average3Y sales CAGR: 9% Moderate

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:54 am

Market Cap 2,165 Cr.
Current Price 224
Intrinsic Value₹166.04
High / Low 324/185
Stock P/E20.1
Book Value 125
Dividend Yield1.34 %
ROCE16.5 %
ROE12.1 %
Face Value 10.0
PEG Ratio-23.60

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

View Share Price Target for Vardhman Special Steels Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Vardhman Special Steels Ltd 2,165 Cr. 224 324/18520.1 1251.34 %16.5 %12.1 % 10.0
Aeroflex Industries Ltd 3,317 Cr. 251 264/14568.1 27.80.12 %22.2 %16.5 % 2.00
Hisar Metal Industries Ltd 76.5 Cr. 142 228/11825.5 1190.71 %9.37 %5.06 % 10.0
Alliance Integrated Metaliks Ltd 58.8 Cr. 1.49 4.60/1.30 7.800.00 %24.7 %% 1.00
Industry Average2,741.00 Cr154.6237.9069.900.54%18.19%11.22%5.75

All Competitor Stocks of Vardhman Special Steels Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 401422409415397439415495427428434432431
Expenses 364398380384364391372456392397402387387
Operating Profit 36242931334942393531324543
OPM % 9%6%7%8%8%11%10%8%8%7%7%10%10%
Other Income 1357689697781113
Interest 5545555553424
Depreciation 7777798888988
Profit before tax 38182525294435352827274645
Tax % 25%24%26%26%25%25%26%26%25%27%26%26%25%
Net Profit 28141918223326262120203534
EPS in Rs 3.511.682.292.272.684.033.203.172.632.412.433.583.48

Last Updated: February 3, 2026, 4:46 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 26, 2026, 9:10 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 3676586536748591,1218469371,3681,7351,6611,7641,725
Expenses 5726466106127971,0538068341,1951,5941,5191,6161,573
Operating Profit -205124362626840104174141142148152
OPM % -56%2%7%9%7%6%5%11%13%8%9%8%9%
Other Income 209714629132939302939
Interest 12202328212426201718181913
Depreciation 6141718222426302728313333
Profit before tax -13-154192522-266158134123125145
Tax % -28%0%0%0%0%-0%-244%33%36%25%25%26%
Net Profit -9-1541925223441011009293108
EPS in Rs -1.52-2.450.683.103.513.110.415.4612.4212.3611.2511.3911.90
Dividend Payout % 0%0%0%0%0%0%0%14%14%8%18%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)-66.67%126.67%375.00%31.58%-12.00%-86.36%1366.67%129.55%-0.99%-8.00%1.09%
Change in YoY Net Profit Growth (%)0.00%193.33%248.33%-343.42%-43.58%-74.36%1453.03%-1237.12%-130.54%-7.01%9.09%

Vardhman Special Steels Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:16%
3 Years:9%
TTM:7%
Compounded Profit Growth
10 Years:21%
5 Years:116%
3 Years:-3%
TTM:-12%
Stock Price CAGR
10 Years:34%
5 Years:50%
3 Years:31%
1 Year:-6%
Return on Equity
10 Years:11%
5 Years:14%
3 Years:14%
Last Year:12%

Last Updated: September 5, 2025, 1:50 pm

Balance Sheet

Last Updated: December 4, 2025, 2:11 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 19191919363640414141818296
Reserves 1671511611803043263734195146026387161,112
Borrowings 2953503383162283342661911621448412077
Other Liabilities 8394979910919490153204244237218274
Total Liabilities 5646156146136778897708039211,0311,0401,1361,559
Fixed Assets 210230251265250280310283289294325309472
CWIP 30212173312131312111757
Investments 32141418050152001826
Other Assets 2923503473464125774435076037057146931,004
Total Assets 5646156146136778897708039211,0311,0401,1361,559

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + -36-33466811-19135875974142127
Cash from Investing Activity + 52-4-16-16-16-70-887-9-15-50-127
Cash from Financing Activity + -3331-35-50782-45-94-52-49-943
Net Cash Flow -16-5-522-720-29-23
Free Cash Flow -89-612736-1-98101782445769
CFO/OP 17%-283%108%110%18%-19%342%90%47%79%122%108%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-500.00-338.00-295.00-254.00-166.00-266.00-226.00-87.0012.00-3.0058.0028.00

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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 122991091028361788759555854
Inventory Days 116119110122123170103134139119129113
Days Payable 414642364789429068616347
Cash Conversion Cycle 197172176188159142139131131113123120
Working Capital Days -7-514175850477881738468
ROCE %-3%-0%5%9%8%7%3%13%26%20%18%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 60.71%60.71%60.71%60.67%60.55%60.55%60.53%60.49%60.37%60.37%51.13%51.10%
FIIs 1.14%1.22%0.96%0.75%0.49%0.64%0.60%0.58%0.64%0.58%0.54%0.54%
DIIs 1.03%1.06%2.42%2.50%2.63%3.14%3.84%4.51%4.17%4.17%3.63%3.30%
Public 37.13%37.03%35.91%36.08%36.33%35.67%35.01%34.42%34.82%34.88%44.70%45.02%
No. of Shareholders 30,12431,95131,90633,71532,86634,68335,22936,34836,28735,85636,44338,079

Shareholding Pattern Chart

No. of Shareholders

Vardhman Special Steels Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Small Cap Fund 2,378,601 0.57 61.031,965,2752025-10-30 04:18:5221.03%
ICICI Prudential Smallcap Fund 778,797 0.24 19.98800,0002025-12-15 01:45:48-2.65%
ICICI Prudential Childrens Fund 26,362 0.05 0.68N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24
FaceValue 10.0010.00
Basic EPS (Rs.) 11.4011.24
Diluted EPS (Rs.) 11.3711.18
Cash EPS (Rs.) 15.4815.05
Book Value[Excl.RevalReserv]/Share (Rs.) 97.6288.31
Book Value[Incl.RevalReserv]/Share (Rs.) 97.6288.31
Revenue From Operations / Share (Rs.) 215.87203.95
PBDIT / Share (Rs.) 21.6821.15
PBIT / Share (Rs.) 17.5817.34
PBT / Share (Rs.) 15.3015.08
Net Profit / Share (Rs.) 11.3911.25
NP After MI And SOA / Share (Rs.) 11.3911.25
PBDIT Margin (%) 10.0410.36
PBIT Margin (%) 8.148.50
PBT Margin (%) 7.087.39
Net Profit Margin (%) 5.275.51
NP After MI And SOA Margin (%) 5.275.51
Return on Networth / Equity (%) 11.6612.73
Return on Capital Employeed (%) 17.4618.67
Return On Assets (%) 8.198.81
Long Term Debt / Equity (X) 0.000.01
Total Debt / Equity (X) 0.150.11
Asset Turnover Ratio (%) 1.620.00
Current Ratio (X) 2.112.38
Quick Ratio (X) 1.041.12
Inventory Turnover Ratio (X) 5.110.00
Dividend Payout Ratio (NP) (%) 17.5017.73
Dividend Payout Ratio (CP) (%) 12.8713.25
Earning Retention Ratio (%) 82.5082.27
Cash Earning Retention Ratio (%) 87.1386.75
Interest Coverage Ratio (X) 9.519.35
Interest Coverage Ratio (Post Tax) (X) 6.005.97
Enterprise Value (Cr.) 1734.091802.94
EV / Net Operating Revenue (X) 0.981.09
EV / EBITDA (X) 9.7910.47
MarketCap / Net Operating Revenue (X) 0.921.04
Retention Ratios (%) 82.4982.26
Price / BV (X) 2.042.40
Price / Net Operating Revenue (X) 0.921.04
EarningsYield 0.050.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Vardhman Special Steels Ltd. is a Public Limited Listed company incorporated on 14/05/2010 and has its registered office in the State of Punjab, India. Company's Corporate Identification Number(CIN) is L27100PB2010PLC033930 and registration number is 033930. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company's Total Operating Revenue is Rs. 1764.41 Cr. and Equity Capital is Rs. 81.73 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Steel - GeneralVardhman Premises, Chandigarh Road, Ludhiana Punjab 141010Contact not found
Management
NamePosition Held
Mr. Rajeev GuptaChairman
Mr. Sachit JainVice Chairman & Mng.Director
Mr. Rajendar Kumar RewariExecutive Director
Ms. Soumya JainExecutive Director
Mr. Rajinder Kumar JainNon Executive Director
Mr. Toshio ItoNon Executive Director
Mrs. Suchita JainNon Executive Director
Mrs. Vidya ShahIndependent Director
Mr. Rakesh JainIndependent Director
Mr. Sanjoy BhattacharyyaIndependent Director
Mr. Suman ChatterjeeIndependent Director
Mr. Hemant Bharat RamIndependent Director
Mr. Randhir Singh KalsiIndependent Director
Mr. Koichiro HayashidaAddnl.Non Executive Director

FAQ

What is the intrinsic value of Vardhman Special Steels Ltd and is it undervalued?

As of 14 April 2026, Vardhman Special Steels Ltd's intrinsic value is ₹166.04, which is 25.88% lower than the current market price of ₹224.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (12.1 %), book value (₹125), dividend yield (1.34 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Vardhman Special Steels Ltd?

Vardhman Special Steels Ltd is trading at ₹224.00 as of 14 April 2026, with a FY2026-2027 high of ₹324 and low of ₹185. The stock is currently in the middle of its 52-week range. Market cap stands at ₹2,165 Cr..

How does Vardhman Special Steels Ltd's P/E ratio compare to its industry?

Vardhman Special Steels Ltd has a P/E ratio of 20.1, which is below the industry average of 37.90. This is broadly in line with or below the industry average.

Is Vardhman Special Steels Ltd financially healthy?

Key indicators for Vardhman Special Steels Ltd: ROCE of 16.5 % indicates efficient capital utilization. Dividend yield is 1.34 %.

Is Vardhman Special Steels Ltd profitable and how is the profit trend?

Vardhman Special Steels Ltd reported a net profit of ₹93 Cr in Mar 2025 on revenue of ₹1,764 Cr. Compared to ₹101 Cr in Mar 2022, the net profit shows a declining trend.

Does Vardhman Special Steels Ltd pay dividends?

Vardhman Special Steels Ltd has a dividend yield of 1.34 % at the current price of ₹224.00. The company pays dividends, though the yield is modest.

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 Special Steels 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
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