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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Vardhman Textiles Ltd (VTL)

Basic Stock Data

Last Updated: June 12, 2024, 10:15 pm

Market Cap 13,792 Cr.
Current Price 477
High / Low497/334
Stock P/E21.8
Book Value 315
Dividend Yield0.70 %
ROCE8.80 %
ROE7.15 %
Face Value 2.00
PEG Ratio12.86

Competitors of Vardhman Textiles Ltd (VTL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Suryalakshmi Cotton Mills Ltd 132 Cr. 70.289.5/55.423.0 1410.00 %8.28 %2.18 % 10.0
Akshar Spintex Ltd 78.0 Cr. 2.607.08/2.1022.5 1.460.30 %10.5 %8.19 % 1.00
Padam Cotton Yarns Ltd 13.7 Cr. 35.357.0/13.6 18.10.00 %25.6 %29.3 % 10.0
Nahar Polyfilms Ltd 503 Cr. 204271/16788.5 3250.75 %0.04 %0.72 % 5.00
Spentex Industries Ltd 25.1 Cr. 2.803.55/1.35 6.260.00 %75.2 %% 10.0
Industry Average150.36 Cr62.9826.8098.360.21%23.92%8.08%7.20

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,9471,9272,3852,6032,7072,8122,4702,3702,4862,3182,3972,3302,459
Expenses1,5531,4481,7091,9842,2082,2862,1122,1922,2242,1032,1922,0852,151
Operating Profit394479676619499526358179262215205244308
OPM %20%25%28%24%18%19%14%8%11%9%9%10%13%
Other Income585477736032417783103988681
Interest28262421292625213032221929
Depreciation92919292929399991041051049997
Profit before tax332416638579438438275136211182178212264
Tax %23%24%24%25%27%24%25%23%24%25%23%23%23%
Net Profit255317482432321333207105160137136162202
EPS in Rs8.6110.9216.7014.8611.1511.397.093.545.494.724.645.546.94

Last Updated: June 9, 2024, 4:08 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 12:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4,9396,1286,7415,8486,0306,2486,8786,7356,1409,62210,1379,505
Expenses3,9644,6685,6234,6724,8315,3455,6845,7985,3267,3488,8148,531
Operating Profit9751,4601,1181,1761,1999031,1949378142,2741,324973
OPM %20%24%17%20%20%14%17%14%13%24%13%10%
Other Income5174161158591215239187222264232369
Interest17715112589129118120135113100102102
Depreciation295335532374343240254333364368394405
Profit before tax5531,0486228721,3187601,0596555592,0711,060835
Tax %30%27%28%28%25%22%30%10%24%25%24%24%
Net Profit3857664466249945927415914271,551805637
EPS in Rs11.2022.5712.5719.3134.1720.2425.4320.0814.4053.5427.5021.84
Dividend Payout %11%10%16%15%8%15%14%0%24%62%13%18%

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%

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:21%
5 Years:15%
3 Years:25%
1 Year:53%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:13%
Last Year:10%

Last Updated: April 16, 2024, 12:10 pm

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

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 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%

Financial Efficiency Indicators Chart

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

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 Plan9,261,5511.39396.217,742,7562024-06-1119.62%
HDFC Mid-Cap Opportunities Fund - Regular Plan7,743,6550.56331.277,742,7562024-06-110.01%
Nippon India Small Cap Fund7,742,7560.72331.247,742,7562024-06-110%
DSP Small Cap Fund4,472,8611.38191.357,742,7562024-06-11-42.23%
HDFC Hybrid Equity Fund - Regular Plan3,595,4040.68153.817,742,7562024-06-11-53.56%
DSP ELSS Tax Saver Fund3,197,3750.99136.787,742,7562024-06-11-58.7%
HSBC Value Fund2,096,7000.889.77,742,7562024-06-11-72.92%
UTI Small Cap Fund1,042,1241.1944.587,742,7562024-06-11-86.54%
ICICI Prudential Dividend Yield Equity Fund842,1351.0436.037,742,7562024-06-11-89.12%
Quant Small Cap Fund835,0000.2335.727,742,7562024-06-11-89.22%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
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) (%)0.000.0022.650.000.00
Dividend Payout Ratio (CP) (%)0.000.0018.300.000.00
Earning Retention Ratio (%)0.000.0077.350.000.00
Cash Earning Retention Ratio (%)0.000.0081.700.000.00
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 (%)0.000.0077.340.000.00
Price / BV (X)1.390.971.611.140.58
Price / Net Operating Revenue (X)1.330.821.291.200.52
EarningsYield0.050.090.120.050.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 494.43

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: 3.65% compared to the current price 477

Intrinsic Value: 502.81

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: 5.41% compared to the current price ₹477

Last 5 Year EPS CAGR: 1.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (5,418.00 cr) compared to borrowings (2,371.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (6.58 cr) and profit (405.17 cr) over the years.
  1. The stock has a low average ROCE of 12.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 148.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 266.17, 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: 23.92%)
      • 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: 8.08%)
      • 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: 21.8 (Industry average Stock P/E: 26.8)
      • 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

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

FAQ

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

The latest fair value of Vardhman Textiles Ltd (VTL) is ₹494.43.

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

The Market Cap of Vardhman Textiles Ltd (VTL) is 13,792 Cr..

What is the current Stock Price of Vardhman Textiles Ltd (VTL) as on 13 June 2024?

The current stock price of Vardhman Textiles Ltd (VTL) as on 13 June 2024 is ₹477.

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

In FY 2024, the High / Low of Vardhman Textiles Ltd (VTL) stocks is 497/334.

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

The Stock P/E of Vardhman Textiles Ltd (VTL) is 21.8.

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

The Book Value of Vardhman Textiles Ltd (VTL) is 315.

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

The Dividend Yield of Vardhman Textiles Ltd (VTL) is 0.70 %.

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

The ROCE of Vardhman Textiles Ltd (VTL) is 8.80 %.

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

The ROE of Vardhman Textiles Ltd (VTL) is 7.15 %.

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

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

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 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