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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Vardhman Textiles Ltd (VTL)

About the Company - Vardhman Textiles Ltd

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. 9386.10 Cr. and Equity Capital is Rs. 57.77 Cr. for the Year ended 31/03/2022.
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
Dr. Parampal SinghIndependent Director
Mr. Prafull AnubhaiIndependent Director
Ms. Sagrika JainExecutive Director
Mr. Udeypaul Singh GillIndependent Director
Mr. Suresh KumarIndependent Director
Mr. Atul KhoslaIndependent Director

Vardhman Textiles Ltd. Share Price Update

Share PriceValue
Today₹430.95
Previous Day₹435.10

Basic Stock Data of Vardhman Textiles Ltd

Market Cap 12,668 Cr.
Current Price 438
High / Low456/270
Stock P/E21.5
Book Value 306
Dividend Yield0.78 %
ROCE11.5 %
ROE9.74 %
Face Value 2.00

Data Source: screener.in

Competitors of Vardhman Textiles Ltd (VTL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Salona Cotspin Ltd 174 Cr. 330357/20220.8 1470.00 %13.8 %26.6 % 10.0
Mohini Health & Hygiene Ltd 109 Cr. 59.597.0/45.615.9 52.00.00 %12.1 %7.92 % 10.0
Patspin India Ltd 39.8 Cr. 12.916.5/8.85 7.850.00 %14.6 %% 10.0
Vardhman Polytex Ltd 186 Cr. 68.074.0/18.8 1380.00 %33.7 %% 10.0
Suryalakshmi Cotton Mills Ltd 152 Cr. 81.089.5/43.418.5 1410.00 %10.3 %5.91 % 10.0
Industry Average132.16 Cr110.2811.0497.170.00%16.90%8.09%10.00

Vardhman Textiles Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,7501,9471,9272,3852,6032,7072,8122,4702,3702,4862,3182,3972,330
Expenses1,4731,5531,4481,7091,9842,2082,2862,1122,1922,2242,1032,1922,085
Operating Profit277394479676619499526358179262215205244
OPM %16%20%25%28%24%18%19%14%8%11%9%9%10%
Other Income665854777360324177831039886
Interest23282624212926252130322219
Depreciation92929192929293999910410510499
Profit before tax228332416638579438438275136211182178212
Tax %23%23%24%24%25%27%24%25%23%24%25%23%23%
Net Profit175255317482432321333207105160137136162
EPS in Rs5.938.6110.9216.7014.8611.1511.397.093.545.494.724.645.54

Vardhman Textiles Ltd Quarterly Chart

Vardhman Textiles Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4,6144,9396,1286,7415,8486,0306,2486,8786,7356,1409,62210,1379,531
Expenses3,9983,9644,6685,6234,6724,8315,3455,6845,7985,3267,3488,8148,604
Operating Profit6169751,4601,1181,1761,1999031,1949378142,2741,324927
OPM %13%20%24%17%20%20%14%17%14%13%24%13%10%
Other Income665174161158591215239187222264232371
Interest17417715112589129118120135113100102104
Depreciation274295335532374343240254333364368394412
Profit before tax2355531,0486228721,3187601,0596555592,0711,060782
Tax %28%30%27%28%28%25%22%30%10%24%25%24%
Net Profit1683857664466249945927415914271,551805594
EPS in Rs4.4411.2022.5712.5719.3134.1720.2425.4320.0814.4053.5427.5020.39
Dividend Payout %20%11%10%16%15%8%15%14%0%24%62%13%

Vardhman Textiles 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 (%)129.17%98.96%-41.78%39.91%59.29%-40.44%25.17%-20.24%-27.75%263.23%-48.10%
Change in YoY Net Profit Growth (%)0.00%-30.21%-140.74%81.69%19.38%-99.74%65.61%-45.41%-7.51%290.98%-311.33%

Vardhman Textiles Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:10%
3 Years:15%
TTM:-8%
Compounded Profit Growth
10 Years:9%
5 Years:10%
3 Years:11%
TTM:-38%
Stock Price CAGR
10 Years:20%
5 Years:18%
3 Years:25%
1 Year:39%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:13%
Last Year:10%

Vardhman Textiles Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital63636363615556565757575757
Reserves2,1442,4443,0703,3133,9394,2184,8975,5355,9916,4127,6478,5078,778
Borrowings2,7573,1743,3732,6402,6302,2382,3212,2782,2212,1321,9831,6781,515
Other Liabilities1,0041,1091,3601,3638839909711,1491,0871,0221,2931,0941,113
Total Liabilities5,9686,7897,8657,3787,5137,5028,2469,0189,3569,62210,98011,33511,463
Fixed Assets2,5782,7043,1542,8752,6272,5912,6313,2013,6283,5293,4943,9373,826
CWIP18521394838649106274142782415137
Investments5125817848691,3131,8681,8341,3461,1451,0751,6912,5492,983
Other Assets2,6943,2913,8333,5513,4882,9943,6764,1984,4414,9415,5544,7984,617
Total Assets5,9686,7897,8657,3787,5137,5028,2469,0189,3569,62210,98011,33511,463

Vardhman Textiles Ltd Reserves and Borrowings Chart

Vardhman Textiles Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,0203338341,4129151,3501034998491681,4451,853
Cash from Investing Activity -652-517-780-315-451-343-167-278-379-116-899-1,445
Cash from Financing Activity -355165-39-975-365-1,18092-252-296-174-571-399
Net Cash Flow13-191612299-17328-30175-122-269

Vardhman Textiles Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days505552444944444344625043
Inventory Days212281296200249218242265276314231147
Days Payable161322232331313237343222
Cash Conversion Cycle245323326221274232255276283342249168
Working Capital Days14916614993127111154163170215161129
ROCE %7%13%18%11%14%15%11%14%10%8%23%11%

Vardhman Textiles Ltd Financial Efficiency Indicators Chart

Vardhman Textiles Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters63.27%63.21%63.17%63.15%62.93%62.91%63.75%63.85%63.85%64.07%64.11%64.13%
FIIs4.26%4.41%4.91%6.30%8.26%7.51%6.99%7.07%6.85%6.65%6.95%6.37%
DIIs21.56%21.29%20.68%18.84%16.52%16.56%16.71%16.85%17.01%16.95%16.70%16.84%
Government0.00%0.00%0.00%0.00%0.34%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public10.91%11.10%11.24%11.71%11.95%13.01%12.51%12.21%12.30%12.32%12.25%12.65%
No. of Shareholders20,94932,49545,07257,31174,44985,45381,99976,00274,07768,70866,67667,848

Vardhman Textiles Ltd Shareholding Pattern Chart

No. of Vardhman Textiles Ltd Shareholders

Vardhman Textiles Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Small Cap Fund - Regular Plan92615511.39396.21
HDFC Mid-Cap Opportunities Fund - Regular Plan77436550.56331.27
Nippon India Small Cap Fund77427560.72331.24
DSP Small Cap Fund44728611.38191.35
HDFC Hybrid Equity Fund - Regular Plan35954040.68153.81
DSP ELSS Tax Saver Fund31973750.99136.78
HSBC Value Fund20967000.889.7
UTI Small Cap Fund10421241.1944.58
ICICI Prudential Dividend Yield Equity Fund8421351.0436.03
Quant Small Cap Fund8350000.2335.72

Vardhman Textiles Ltd ROCE Trend

Vardhman Textiles Ltd EPS Trend

Vardhman Textiles Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)27.9654.5872.52102.22129.45
Diluted EPS (Rs.)27.9554.4272.07101.45128.19
Cash EPS (Rs.)40.7366.12135.37161.37173.27
Book Value[Excl.RevalReserv]/Share (Rs.)304.16275.861167.161091.391009.81
Book Value[Incl.RevalReserv]/Share (Rs.)304.16275.861167.161091.391009.81
Revenue From Operations / Share (Rs.)356.39338.581085.551191.611217.76
PBDIT / Share (Rs.)53.2987.91179.53196.71250.79
PBIT / Share (Rs.)39.4374.98115.20137.76205.82
PBT / Share (Rs.)35.8471.4795.17113.82184.63
Net Profit / Share (Rs.)26.8753.1971.05102.41128.30
NP After MI And SOA / Share (Rs.)27.9554.4372.47102.18129.38
PBDIT Margin (%)14.9525.9616.5316.5020.59
PBIT Margin (%)11.0622.1410.6111.5616.90
PBT Margin (%)10.0521.108.769.5515.16
Net Profit Margin (%)7.5315.706.548.5910.53
NP After MI And SOA Margin (%)7.8416.076.678.5710.62
Return on Networth / Equity (%)9.2820.086.339.5413.07
Return on Capital Employeed (%)11.3423.547.9410.0816.24
Return On Assets (%)7.0114.084.256.178.10
Long Term Debt / Equity (X)0.100.110.200.200.19
Total Debt / Equity (X)0.190.250.280.330.35
Asset Turnover Ratio (%)0.900.920.630.710.77
Current Ratio (X)4.003.033.642.992.51
Quick Ratio (X)2.351.541.681.351.11
Inventory Turnover Ratio (X)2.241.711.131.301.39
Dividend Payout Ratio (NP) (%)0.0022.650.000.0011.58
Dividend Payout Ratio (CP) (%)0.0018.300.000.008.59
Earning Retention Ratio (%)0.0077.350.000.0088.42
Cash Earning Retention Ratio (%)0.0081.700.000.0091.41
Interest Coverage Ratio (X)14.8425.058.968.2211.84
Interest Coverage Ratio (Post Tax) (X)8.4816.164.555.287.06
Enterprise Value (Cr.)9747.4814377.199123.305379.988137.49
EV / Net Operating Revenue (X)0.961.491.490.791.18
EV / EBITDA (X)6.435.758.984.845.74
MarketCap / Net Operating Revenue (X)0.821.291.200.520.88
Retention Ratios (%)0.0077.340.000.0088.41
Price / BV (X)0.971.611.140.581.09
Price / Net Operating Revenue (X)0.821.291.200.520.88
EarningsYield0.090.120.050.160.11

Vardhman Textiles Ltd Profitability Ratios (%)

Vardhman Textiles Ltd Liquidity Ratios

Vardhman Textiles Ltd Liquidity Ratios (%)

Vardhman Textiles Ltd Interest Coverage Ratios (X)

Vardhman Textiles Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vardhman Textiles Ltd

Fair Value: ₹645.79

The stock is undervalued by 47.44% compared to the current price ₹438

*Investments are subject to market risks

Strength and Weakness of Vardhman Textiles Ltd

StrengthWeakness
  1. The company has higher reserves (5,145.77 cr) compared to borrowings (2,380.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (6.38 cr) and profit (388.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 114.64 and average Dividend Yield of 14.45%.
  2. The stock has a low average ROCE of 12.92%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 148.92, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 266.17, which may not be favorable.

Should I Buy Vardhman Textiles Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vardhman Textiles Ltd (VTL):
    1. Net Profit Margin: 7.53%
      • 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: 11.34% (Industry Average ROCE: 16.9%)
      • 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): 8.48
      • 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: 2.35
      • 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: 21.5 (Industry average Stock P/E: 11.04)
      • 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: 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 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 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