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Last Updated on: 23 February, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Vardhman Textiles Ltd (VTL): Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 22, 2025, 6:29 am

Market Cap 12,148 Cr.
Current Price 420
High / Low 592/396
Stock P/E14.4
Book Value 326
Dividend Yield0.95 %
ROCE8.73 %
ROE7.09 %
Face Value 2.00
PEG Ratio1.20

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

View Share Price Target for Vardhman Textiles Ltd (VTL)

Competitors of Vardhman Textiles Ltd (VTL)

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Mohite Industries Ltd 106 Cr. 5.29 16.4/3.3017.4 5.670.00 %6.18 %2.27 % 1.00
Hisar Spinning Mills Ltd 19.8 Cr. 53.0 84.0/40.87.65 62.40.00 %12.5 %9.50 % 10.0
Rudra Ecovation Ltd 549 Cr. 48.0 82.6/36.7 8.360.00 %1.92 %4.05 % 1.00
H P Cotton Textile Mills Ltd 41.7 Cr. 106 194/100 38.50.00 %4.39 %6.57 % 10.0
Gujarat Hy-Spin Ltd 35.4 Cr. 21.2 24.5/8.5033.4 11.20.00 %4.31 %0.90 % 10.0
Industry Average2,665.92 Cr170.5929.72122.880.34%32.24%10.84%7.24

All Competitor Stocks of Vardhman Textiles Ltd (VTL)

Quarterly Result

MetricJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales 1,9272,3852,6032,7072,8122,4702,3702,4862,3182,3972,3302,4592,309
Expenses 1,4481,7091,9842,2082,2862,1122,1922,2242,1032,1922,0852,1511,961
Operating Profit 479676619499526358179262215205244308348
OPM % 25%28%24%18%19%14%8%11%9%9%10%13%15%
Other Income 547773603241778310398868179
Interest 26242129262521303222192918
Depreciation 91929292939999104105104999797
Profit before tax 416638579438438275136211182178212264312
Tax % 24%24%25%27%24%25%23%24%25%23%23%23%23%
Net Profit 317482432321333207105160137136162202240
EPS in Rs 10.9216.7014.8611.1511.397.093.545.494.724.645.546.948.25

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

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

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 4,9396,1286,7415,8486,0306,2486,8786,7356,1409,62210,1379,5059,495
Expenses 3,9644,6685,6234,6724,8315,3455,6845,7985,3267,3488,8148,5318,389
Operating Profit 9751,4601,1181,1761,1999031,1949378142,2741,3249731,106
OPM % 20%24%17%20%20%14%17%14%13%24%13%10%12%
Other Income 5174161158591215239187222264232369344
Interest 1771511258912911812013511310010210288
Depreciation 295335532374343240254333364368394405397
Profit before tax 5531,0486228721,3187601,0596555592,0711,060835965
Tax % 30%27%28%28%25%22%30%10%24%25%24%24%
Net Profit 3857664466249945927415914271,551805637740
EPS in Rs 11.2022.5712.5719.3134.1720.2425.4320.0814.4053.5427.5021.8425.37
Dividend Payout % 11%10%16%15%8%15%14%0%24%62%13%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)98.96%-41.78%39.91%59.29%-40.44%25.17%-20.24%-27.75%263.23%-48.10%-20.87%
Change in YoY Net Profit Growth (%)0.00%-140.74%81.69%19.38%-99.74%65.61%-45.41%-7.51%290.98%-311.33%27.23%

Vardhman Textiles Ltd (VTL) 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:4%
5 Years:7%
3 Years:16%
TTM:2%
Compounded Profit Growth
10 Years:-1%
5 Years:-1%
3 Years:15%
TTM:44%
Stock Price CAGR
10 Years:15%
5 Years:14%
3 Years:-6%
1 Year:-3%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:12%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 63636361555656575757575757
Reserves 2,4443,0703,3133,9394,2184,8975,5355,9916,4127,6478,5079,0439,369
Borrowings 3,1743,3732,6402,6302,2382,3212,2782,2212,1321,9831,6781,791951
Other Liabilities 1,1091,3601,3638839909711,1491,0871,0221,2931,0941,0911,274
Total Liabilities 6,7897,8657,3787,5137,5028,2469,0189,3569,62210,98011,33511,98311,651
Fixed Assets 2,7043,1542,8752,6272,5912,6313,2013,6283,5293,4943,9373,7693,731
CWIP 21394838649106274142782415161271
Investments 5817848691,3131,8681,8341,3461,1451,0751,6912,5491,6992,687
Other Assets 3,2913,8333,5513,4882,9943,6764,1984,4414,9415,5544,7986,4544,961
Total Assets 6,7897,8657,3787,5137,5028,2469,0189,3569,62210,98011,33511,98311,651

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3338341,4129151,3501034998491681,4451,853-1,055
Cash from Investing Activity +-517-780-315-451-343-167-278-379-116-899-1,4451,104
Cash from Financing Activity +165-39-975-365-1,18092-252-296-174-571-399-90
Net Cash Flow-191612299-17328-30175-122-269-41

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow972.00-2.00-1.00-1.00-1.00901.00-1.00935.00812.001.000.00972.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days555244494444434462504347
Inventory Days281296200249218242265276314231147273
Days Payable132223233131323734322223
Cash Conversion Cycle323326221274232255276283342249168296
Working Capital Days16614993127111154163170215161129209
ROCE %13%18%11%14%15%11%14%10%8%23%11%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters62.93%62.91%63.75%63.85%63.85%64.07%64.11%64.13%64.13%64.19%64.19%64.21%
FIIs8.26%7.51%6.99%7.07%6.85%6.65%6.95%6.37%6.29%6.12%6.03%5.97%
DIIs16.52%16.56%16.71%16.85%17.01%16.95%16.70%16.84%16.54%16.65%16.59%16.71%
Government0.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public11.95%13.01%12.51%12.21%12.30%12.32%12.25%12.65%13.04%13.02%13.18%13.11%
No. of Shareholders74,44985,45381,99976,00274,07768,70866,67667,84868,94563,87071,87475,337

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan9,261,5511.39396.219,261,5512025-02-220%
HDFC Mid-Cap Opportunities Fund - Regular Plan7,743,6550.56331.279,261,5512025-02-22-16.39%
Nippon India Small Cap Fund7,742,7560.72331.249,261,5512025-02-22-16.4%
DSP Small Cap Fund4,472,8611.38191.359,261,5512025-02-22-51.71%
HDFC Hybrid Equity Fund - Regular Plan3,595,4040.68153.819,261,5512025-02-22-61.18%
DSP ELSS Tax Saver Fund3,197,3750.99136.789,261,5512025-02-22-65.48%
HSBC Value Fund2,096,7000.889.79,261,5512025-02-22-77.36%
UTI Small Cap Fund1,042,1241.1944.589,261,5512025-02-22-88.75%
ICICI Prudential Dividend Yield Equity Fund842,1351.0436.039,261,5512025-02-22-90.91%
Quant Small Cap Fund835,0000.2335.729,261,5512025-02-22-90.98%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 2.002.002.0010.0010.00
Basic EPS (Rs.) 22.2027.9654.5872.52102.22
Diluted EPS (Rs.) 22.2027.9554.4272.07101.45
Cash EPS (Rs.) 35.1040.7366.12135.37161.37
Book Value[Excl.RevalReserv]/Share (Rs.) 322.95304.16275.861167.161091.39
Book Value[Incl.RevalReserv]/Share (Rs.) 322.95304.16275.861167.161091.39
Revenue From Operations / Share (Rs.) 334.08356.39338.581085.551191.61
PBDIT / Share (Rs.) 45.6653.2987.91179.53196.71
PBIT / Share (Rs.) 31.4439.4374.98115.20137.76
PBT / Share (Rs.) 27.8535.8471.4795.17113.82
Net Profit / Share (Rs.) 20.8826.8753.1971.05102.41
NP After MI And SOA / Share (Rs.) 22.2027.9554.4372.47102.18
PBDIT Margin (%) 13.6614.9525.9616.5316.50
PBIT Margin (%) 9.4111.0622.1410.6111.56
PBT Margin (%) 8.3310.0521.108.769.55
Net Profit Margin (%) 6.257.5315.706.548.59
NP After MI And SOA Margin (%) 6.647.8416.076.678.57
Return on Networth / Equity (%) 6.949.2820.086.339.54
Return on Capital Employeed (%) 9.0111.3423.547.9410.08
Return On Assets (%) 5.277.0114.084.256.17
Long Term Debt / Equity (X) 0.040.100.110.200.20
Total Debt / Equity (X) 0.190.190.250.280.33
Asset Turnover Ratio (%) 0.810.900.920.630.71
Current Ratio (X) 3.124.003.033.642.99
Quick Ratio (X) 1.092.351.541.681.35
Inventory Turnover Ratio (X) 1.672.241.711.131.30
Dividend Payout Ratio (NP) (%) 15.750.0022.650.000.00
Dividend Payout Ratio (CP) (%) 9.600.0018.300.000.00
Earning Retention Ratio (%) 84.250.0077.350.000.00
Cash Earning Retention Ratio (%) 90.400.0081.700.000.00
Interest Coverage Ratio (X) 12.7014.8425.058.968.22
Interest Coverage Ratio (Post Tax) (X) 6.818.4816.164.555.28
Enterprise Value (Cr.) 14411.719747.4814377.199123.305379.98
EV / Net Operating Revenue (X) 1.520.961.491.490.79
EV / EBITDA (X) 11.096.435.758.984.84
MarketCap / Net Operating Revenue (X) 1.330.821.291.200.52
Retention Ratios (%) 84.240.0077.340.000.00
Price / BV (X) 1.390.971.611.140.58
Price / Net Operating Revenue (X) 1.330.821.291.200.52
EarningsYield 0.050.090.120.050.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vardhman Textiles Ltd (VTL) as of February 23, 2025 is: ₹268.80

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 February 23, 2025, Vardhman Textiles Ltd (VTL) is Overvalued by 36.00% compared to the current share price ₹420.00

Intrinsic Value of Vardhman Textiles Ltd (VTL) as of February 23, 2025 is: 301.04

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 February 23, 2025, Vardhman Textiles Ltd (VTL) is Overvalued by 28.32% compared to the current share price ₹420.00

Last 5 Year EPS CAGR: 11.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (5,721.92 cr) compared to borrowings (2,262.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (6.77 cr) and profit (448.23 cr) over the years.
  1. The stock has a low average ROCE of 13.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 153.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 270.42, 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 Textiles Ltd (VTL):
    1. Net Profit Margin: 6.25%
      • 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: 9.01% (Industry Average ROCE: 32.24%)
      • 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%: 6.94% (Industry Average ROE: 10.84%)
      • 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): 6.81
      • 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: 1.09
      • 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: 14.4 (Industry average Stock P/E: 29.72)
      • 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: 0.19
      • 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 Textiles Ltd. is a Public Limited Listed company incorporated on 08/10/1973 and has its registered office in the State of Punjab, India. Company's Corporate Identification Number(CIN) is L17111PB1973PLC003345 and registration number is 003345. Currently Company is involved in the business activities of Spinning, weaving and finishing of textiles. Company's Total Operating Revenue is Rs. 9298.68 Cr. and Equity Capital is Rs. 57.83 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton BlendedVardhman Premises, Chandigarh Road, Ludhiana Punjab 141010secretarial.lud@vardhman.com
http://www.vardhman.com
Management
NamePosition Held
Mr. Shri Paul OswalChairman & Managing Director
Mrs. Suchita JainVice Chairman & Jt Manag. Dir.
Mr. Neeraj JainJoint Managing Director
Mrs. Harpreet Kaur KangIndependent Director
Mr. Sachit JainNon Executive Director
Mr. Prafull AnubhaiIndependent Director
Ms. Sagrika JainExecutive Director
Mr. Udeypaul Singh GillIndependent Director
Mr. Suresh KumarIndependent Director
Mr. Atul KhoslaIndependent Director
Mr. Prem KumarIndependent Director

FAQ

What is the latest intrinsic value of Vardhman Textiles Ltd (VTL)?

Let's break down Vardhman Textiles Ltd (VTL)'s intrinsic value simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 23 February 2025:

  • Calculated Fair Value: ₹268.80
  • Current Market Price: ₹420.00
  • Variance: 36.00% lower

This suggests Vardhman Textiles Ltd (VTL) is currently overvalued by 36.00%. For context:

  • Market Cap: 12,148 Cr.
  • 52-Week Range: 592/396
  • Reserves (Sep 2024): ₹9,369 Cr
  • Liabilities: 11,651 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Vardhman Textiles Ltd (VTL)?

The Market Cap of Vardhman Textiles Ltd (VTL) is 12,148 Cr..

What is the current Stock Price of Vardhman Textiles Ltd (VTL) as on 23 February 2025?

The current stock price of Vardhman Textiles Ltd (VTL) as on 23 February 2025 is ₹420.

What is the High / Low of Vardhman Textiles Ltd (VTL) stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Vardhman Textiles Ltd (VTL) stocks is 592/396.

What is the Stock P/E of Vardhman Textiles Ltd (VTL)?

The Stock P/E of Vardhman Textiles Ltd (VTL) is 14.4.

What is the Book Value of Vardhman Textiles Ltd (VTL)?

The Book Value of Vardhman Textiles Ltd (VTL) is 326.

What is the Dividend Yield of Vardhman Textiles Ltd (VTL)?

The Dividend Yield of Vardhman Textiles Ltd (VTL) is 0.95 %.

What is the ROCE of Vardhman Textiles Ltd (VTL)?

The ROCE of Vardhman Textiles Ltd (VTL) is 8.73 %.

What is the ROE of Vardhman Textiles Ltd (VTL)?

The ROE of Vardhman Textiles Ltd (VTL) is 7.09 %.

What is the Face Value of Vardhman Textiles Ltd (VTL)?

The Face Value of Vardhman Textiles Ltd (VTL) is 2.00.

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 Textiles Ltd (VTL). 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