Vardhman Textiles
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Vardhman Textiles Limited, together with its subsidiaries, manufacturing, purchases, and sells textiles in India. The last earnings update was 71 days ago. More info.
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502986 Share Price and Events
7 Day Returns
1 Year Returns
502986 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Vardhman Textiles (502986) | 1.1% | 5.8% | 6.4% | -6.9% | 30.8% | 236.9% |
| IN Luxury | 1.4% | 2% | 8.4% | -3.3% | 47.7% | 164.2% |
| IN Market | 1.7% | 2.7% | 5.8% | 0.1% | 41.6% | 73.3% |
1 Year Return vs Industry and Market
- 502986 underperformed the Luxury industry which returned -3.3% over the past year.
- 502986 underperformed the Market in India which returned 0.1% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Vardhman Textiles
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Vardhman Textiles.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 15.2% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| Luxury Unlevered Beta | Simply Wall St/ S&P Global | 0.73 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.728 (1 + (1- 35%) (20.89%)) |
0.884 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.88 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.884 * 8.6%) |
15.15% |
Discounted Cash Flow Calculation for BSE:502986 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Vardhman Textiles is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 15.15%) |
|
|---|---|---|---|
| 2019 | -3,426.00 | Analyst x1 | -2,975.19 |
| 2020 | 2,446.50 | Analyst x2 | 1,845.02 |
| 2021 | 6,067.50 | Analyst x2 | 3,973.68 |
| 2022 | 9,668.66 | Est @ 59.35% | 5,498.91 |
| 2023 | 13,904.61 | Est @ 43.81% | 6,867.47 |
| 2024 | 18,483.79 | Est @ 32.93% | 7,927.87 |
| 2025 | 23,163.51 | Est @ 25.32% | 8,627.75 |
| 2026 | 27,793.33 | Est @ 19.99% | 8,990.04 |
| 2027 | 32,311.50 | Est @ 16.26% | 9,076.23 |
| 2028 | 36,720.21 | Est @ 13.64% | 8,957.38 |
| Present value of next 10 years cash flows | ₹58,789.15 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹36,720.21 × (1 + 7.55%) ÷ (15.15% – 7.55%) |
₹519,486.03 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹519,486.03 ÷ (1 + 15.15%)10 |
₹126,721.38 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹58,789.15 + ₹126,721.38 |
₹185,510.53 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹185,510.53 / 56.49 |
₹3284.01 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹3,284.01 |
| Current discount | Discount to share price of
₹1,142.25
= -1 x (₹1,142.25 - ₹3,284.01) / ₹3,284.01 |
65.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Vardhman Textiles's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Vardhman Textiles's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Vardhman Textiles's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Vardhman Textiles's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in INR | ₹126.68 |
| BSE:502986 Share Price ** | BSE (2019-04-18) in INR | ₹1142.25 |
| India Luxury Industry PE Ratio | Median Figure of 240 Publicly-Listed Luxury Companies | 12.35x |
| India Market PE Ratio | Median Figure of 2,735 Publicly-Listed Companies | 16.29x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Vardhman Textiles.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:502986 Share Price ÷ EPS (both in INR) = 1142.25 ÷ 126.68 |
9.02x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vardhman Textiles is good value based on earnings compared to the IN Luxury industry average.
- Vardhman Textiles is good value based on earnings compared to the India market.
Price based on expected Growth
Does
Vardhman Textiles's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.02x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
8.1%per year |
| India Luxury Industry PEG Ratio | Median Figure of 25 Publicly-Listed Luxury Companies | 1.57x |
| India Market PEG Ratio | Median Figure of 584 Publicly-Listed Companies | 1.33x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.02x ÷ 8.1% |
1.12x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vardhman Textiles is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Vardhman Textiles's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in INR | ₹922.24 |
| BSE:502986 Share Price * | BSE (2019-04-18) in INR | ₹1142.25 |
| India Luxury Industry PB Ratio | Median Figure of 311 Publicly-Listed Luxury Companies | 0.75x |
| India Market PB Ratio | Median Figure of 3,626 Publicly-Listed Companies | 1.12x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:502986 Share Price ÷ Book Value per Share (both in INR) = 1142.25 ÷ 922.24 |
1.24x |
* Primary Listing of Vardhman Textiles.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Vardhman Textiles is overvalued based on assets compared to the IN Luxury industry average.
Value checks
We assess Vardhman Textiles's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check) Vardhman Textiles has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Vardhman Textiles's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Vardhman Textiles's earnings growth is positive but not above the India market average.
- Vardhman Textiles's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:502986 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 8.1% |
| BSE:502986 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 7.5% |
| India Luxury Industry Earnings Growth Rate | Market Cap Weighted Average | 19.2% |
| India Luxury Industry Revenue Growth Rate | Market Cap Weighted Average | 15% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.7% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.8% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 78,389 | 7,360 | 8,429 | 3 |
| 2020-03-31 | 73,216 | 7,743 | 7,668 | 3 |
| 2019-03-31 | 67,690 | 8,402 | 7,138 | 3 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 66,183 | 7,150 | |
| 2018-09-30 | 65,368 | 6,548 | |
| 2018-06-30 | 63,806 | 5,915 | |
| 2018-03-31 | 62,424 | 1,023 | 5,812 |
| 2017-12-31 | 63,395 | 5,760 | |
| 2017-09-30 | 61,585 | 6,311 | |
| 2017-06-30 | 61,546 | 9,520 | |
| 2017-03-31 | 59,975 | 13,503 | 9,814 |
| 2016-12-31 | 66,588 | 7,116 | |
| 2016-09-30 | 67,003 | 6,788 | |
| 2016-06-30 | 66,511 | 6,133 | |
| 2016-03-31 | 58,596 | 9,151 | 6,146 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Vardhman Textiles Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 148.37 | 155.90 | 139.00 | 3.00 |
| 2020-03-31 | 134.63 | 138.70 | 129.50 | 4.00 |
| 2019-03-31 | 125.40 | 126.90 | 124.00 | 4.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2018-12-31 | 126.68 |
| 2018-09-30 | 116.90 |
| 2018-06-30 | 104.82 |
| 2018-03-31 | 104.54 |
| 2017-12-31 | 102.92 |
| 2017-09-30 | 109.73 |
| 2017-06-30 | 162.27 |
| 2017-03-31 | 163.10 |
| 2016-12-31 | 113.83 |
| 2016-09-30 | 108.58 |
| 2016-06-30 | 98.10 |
| 2016-03-31 | 100.90 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Vardhman Textiles's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Vardhman Textiles has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Vardhman Textiles performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Vardhman Textiles's year on year earnings growth rate has been positive over the past 5 years.
- Vardhman Textiles's 1-year earnings growth exceeds its 5-year average (24.1% vs 7%)
- Vardhman Textiles's earnings growth has exceeded the IN Luxury industry average in the past year (24.1% vs 14.8%).
Earnings and Revenue History
All data from Vardhman Textiles Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 66,182.90 | 7,149.90 | 5,326.90 | |
| 2018-09-30 | 65,368.30 | 6,547.50 | 5,208.30 | |
| 2018-06-30 | 63,806.40 | 5,914.80 | 5,178.10 | |
| 2018-03-31 | 62,424.20 | 5,811.90 | 5,088.40 | |
| 2017-12-31 | 63,394.80 | 5,760.34 | 5,152.15 | |
| 2017-09-30 | 61,585.30 | 6,311.14 | 5,118.35 | |
| 2017-06-30 | 61,545.80 | 9,519.70 | 4,883.10 | |
| 2017-03-31 | 59,974.50 | 9,814.10 | 4,847.30 | |
| 2016-12-31 | 66,588.10 | 7,116.42 | 5,378.62 | |
| 2016-09-30 | 67,003.30 | 6,788.22 | 5,448.62 | |
| 2016-06-30 | 66,510.90 | 6,133.12 | 5,345.62 | |
| 2016-03-31 | 58,596.13 | 6,145.93 | 4,366.07 | |
| 2015-12-31 | 66,462.20 | 5,284.59 | 7,500.17 | |
| 2015-09-30 | 66,332.60 | 4,659.49 | 7,246.37 | |
| 2015-06-30 | 67,479.90 | 4,397.39 | 7,107.97 | |
| 2015-03-31 | 67,859.60 | 4,002.09 | 4,531.64 | |
| 2014-12-31 | 67,090.32 | 4,288.46 | 6,269.90 | |
| 2014-03-31 | 61,664.32 | 7,183.46 | 6,267.50 | |
| 2013-03-31 | 49,720.74 | 3,563.83 | 5,407.68 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Vardhman Textiles has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Vardhman Textiles used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
- Vardhman Textiles has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Vardhman Textiles's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Vardhman Textiles has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Vardhman Textiles's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Vardhman Textiles's finances.
The net worth of a company is the difference between its assets and liabilities.
- Vardhman Textiles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Vardhman Textiles's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Vardhman Textiles Company Filings, last reported 3 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 53,212.70 | 13,402.90 | 12,923.50 |
| 2018-09-30 | 53,212.70 | 13,402.90 | 12,923.50 |
| 2018-06-30 | 50,624.80 | 20,309.60 | 10,712.00 |
| 2018-03-31 | 50,624.80 | 23,214.80 | 10,498.00 |
| 2017-12-31 | 46,506.20 | 18,347.50 | 13,733.80 |
| 2017-09-30 | 46,506.20 | 18,347.50 | 13,733.80 |
| 2017-06-30 | 43,854.80 | 18,090.20 | 10,134.90 |
| 2017-03-31 | 43,854.20 | 22,383.60 | 9,770.20 |
| 2016-12-31 | 46,904.90 | 19,590.50 | 22,203.20 |
| 2016-09-30 | 46,904.90 | 19,590.50 | 22,203.20 |
| 2016-06-30 | 42,180.62 | 27,781.88 | 5,464.06 |
| 2016-03-31 | 41,029.36 | 26,302.68 | 4,357.64 |
| 2015-12-31 | 40,732.60 | 16,436.70 | 14,702.10 |
| 2015-09-30 | 40,732.60 | 16,436.70 | 14,702.10 |
| 2015-06-30 | 38,163.04 | 26,401.55 | 6,145.81 |
| 2015-03-31 | 38,163.04 | 26,401.55 | 6,145.81 |
| 2014-12-31 | |||
| 2014-03-31 | 35,283.64 | 33,727.41 | 4,928.74 |
| 2013-03-31 | 28,619.65 | 31,736.84 | 5,361.23 |
- Vardhman Textiles's level of debt (25.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (98.8% vs 25.2% today).
- Debt is not well covered by operating cash flow (7.6%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).
Financial health checks
We assess Vardhman Textiles's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Vardhman Textiles has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Vardhman Textiles's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Vardhman Textiles
shares you are expected to receive
₹26
in your first year as a dividend.
Dividend Amount
- Vardhman Textiles's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.49%).
- Vardhman Textiles's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| India Luxury Industry Average Dividend Yield | Market Cap Weighted Average of 110 Stocks | 0.6% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1399 Stocks | 1.3% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 1.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 19.50 | 2.00 |
| 2020-03-31 | 20.37 | 3.00 |
| 2019-03-31 | 16.00 | 2.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-09-27 | 15.000 | 1.426 |
| 2017-05-10 | 15.000 | 1.211 |
| 2016-05-09 | 15.000 | 1.377 |
| 2016-03-11 | 15.000 | 1.819 |
| 2015-07-22 | 10.000 | 1.246 |
| 2014-08-07 | 6.000 | 1.184 |
| 2014-05-23 | 6.000 | 1.309 |
| 2013-09-10 | 6.000 | 1.708 |
| 2012-09-06 | 4.500 | 1.718 |
| 2011-09-27 | 4.500 | 2.211 |
| 2010-05-07 | 3.000 | 1.145 |
| 2009-05-07 | 2.000 | 1.227 |
| 2009-04-20 | 2.000 | 2.950 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Vardhman Textiles's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are thoroughly covered by earnings (8.4x coverage).
- Dividends after 3 years are expected to be thoroughly covered by earnings (7.4x coverage).
Income/ dividend checks
We assess Vardhman Textiles's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Vardhman Textiles afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Vardhman Textiles has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | ₹151,864,000 |
| AGE | 76 |
| TENURE AS CEO | 13.8 years |
CEO Bio
Mr. Shri Paul Oswal, M.Com. has been the Executive Chairman of Vardhman Textiles Limited since June 1, 2005 and its Managing Director since June 17, 2005. Mr. Oswal has been the Managing Director of Vardhman Holdings Ltd. since August 9, 2016. He served as Chief Executive Officer and Managing Director of Vardhman Holdings Ltd. Mr. Oswal served as the Managing Director and Chairman of the Board at Vardhman Special Steels Limited. He has a Rich Business experience of about 38 years in the Textile Industry. He co-founded Ludhiana Stock Exchange Limited in 1981 and served as its President and Chairman from August 16, 1983 to July 27, 1986. He served as the Managing Director of Vardhman Holdings Ltd., (formerly, Vardhman Spinning & General Mills) until June 1, 2005. Mr. Oswal serves as the Chairman of Vardhman Holdings Ltd. He serves as the Chairman of Nimbua Greenfield (Punjab) Limited, Vardhman Yarns & Threads Limited and Vardhman Threads Ltd. He serves as the Non-Executive Chairman at Vardhman Acrylics Ltd. and has been its Non Independent Director since December 24, 1990. Mr. Oswal has been a Director of Vardhman Holdings Ltd., since April 12, 1971 and UTI Trustee Company Pvt. Ltd., of UTI Mutual Fund - Children Career Plan since January 13, 2006. He has been a Director of Vardhman Textiles since October 08, 1973. He serves as a Director of VMT Spinning Company Limited, Adinath Investment & Trading Company, Devakar Investment & Trading Company (P) Limited, Anklesh Investments (P) Limited, Srestha Holdings Limited, Vardhman Linen Limited, Vardhman Textile Processors (P) Limited, Santon Finance and Investment Company Limited, Flamingo Finance and Investment Company Limited, Ramaniya Finance and Investment Company Limited, Marshall Investment and Trading Company (P) Limited, Pradeep Mercantile Company Pvt. Ltd., Plaza Trading Company (P) Limited, The Ludhiana Industries Power Company Limited, Syracuse Investment & Trading Company (P) Limited, Vardhman Yarns & Threads Limited and Nimbua Greenfield (Punjab) Limited. He serves as a Director of Syracase Investment & Trading Co. P. Ltd. He serves as a Trustee of Banarso Devi Oswal Public Charitable Trust, Sri Aurobindo Socio Economic & Mgt. Research Institute, VSGM Ltd., Employees Gratuity Fund Trust, Mahavir Employees Gratuity Fund Trust, Vardhman Superannuation Scheme and Mahavir Superannuation Scheme. He served as Director of Export-Import Bank of India.
CEO Compensation
- Shri's compensation has been consistent with company performance over the past year.
- Shri's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the Vardhman Textiles management team in years:
- The tenure for the Vardhman Textiles management team is about average.
Management Team
Shri Oswal
Executive Chairman & MD
₹152M
76
13.8 yrs
Suchita Jain
Vice Chairperson & Joint MD
₹17M
50
2.4 yrs
Neeraj Jain
Joint MD
₹17M
51
4.7 yrs
I. M. J. Sidhu
President & Director In-charge
70
Rajeev Thapar
Chief Financial Officer
52
Sanjay Gupta
Compliance Officer & Company Secretary
1.8 yrs
D. Sindwani
Director of Corporate Services
57
I. Dhuria
Director of Materials
64
S. Pal
Director of MP Location
74
S. Rai
Vice President
41
Board of Directors Tenure
Average tenure and age of the Vardhman Textiles board of directors in years:
- The average tenure for the Vardhman Textiles board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Shri Oswal
Executive Chairman & MD
₹152M
76
13.8 yrs
Suchita Jain
Vice Chairperson & Joint MD
₹17M
50
0.2 yrs
Neeraj Jain
Joint MD
₹17M
51
9 yrs
Prafull Shah
Non-Executive Independent Director
₹380K
80
38.8 yrs
Ashok Kundra
Non-Executive Independent Director
₹500K
75
10.3 yrs
Darshan Sharma
Non-Executive Non-Independent Director
70
33.7 yrs
Sachit Jain
Director
₹14M
52
24.8 yrs
Subash Bijlani
Non-Executive Independent Director
₹255K
76
14.1 yrs
Devendra Jain
Independent Additional Director
₹260K
76
4.7 yrs
Rajender Malla
Independent Director
₹170K
65
3.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Apr 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 04. Apr 19 | 04. Apr 19 | 10,294 | ₹1,078.88 | ₹11,105,984 | ||
| 29. Mar 19 | Sell | Darshan Sharma | Individual | 26. Mar 19 | 26. Mar 19 | -300 | ₹1,078.88 | ₹-323,664 | ||
| 28. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 27. Mar 19 | 27. Mar 19 | 1,468 | ₹1,078.33 | ₹1,582,988 | ||
| 27. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 26. Mar 19 | 26. Mar 19 | 4,891 | ₹1,078.13 | ₹5,273,134 | ||
| 20. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 18. Mar 19 | 19. Mar 19 | 2,415 | ₹1,085.89 | ₹2,618,777 | ||
| 11. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 08. Mar 19 | 08. Mar 19 | 7,602 | ₹1,059.47 | ₹8,054,091 | ||
| 02. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 28. Feb 19 | 28. Feb 19 | 205 | ₹998.69 | ₹204,732 | ||
| 01. Mar 19 | Buy | Devakar Investment and Trading Company Private Limited | Company | 27. Feb 19 | 27. Feb 19 | 5,963 | ₹974.42 | ₹5,810,479 | ||
| 06. Jul 18 | Sell | Neeraj Jain | Individual | 02. Jul 18 | 04. Jul 18 | -1,012 | ₹1,219.32 | ₹-1,227,626 | ||
Management checks
We assess Vardhman Textiles's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Vardhman Textiles has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
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Simply Wall St - – Full articleCompany Info
Description
Vardhman Textiles Limited, together with its subsidiaries, manufacturing, purchases, and sells textiles in India. It operates in two segments, Textiles and Fibre. The company manufactures yarns, fabrics, fibers, threads, and garments. It offers specialized greige and dyed yarns in cotton, polyester, acrylic, and various blends; and value added products, such as organic cotton, melange, core spun yarns, ultra yarns, gassed mercerized, super fine yarns, slub and cellulose yarns, and fancy yarns for hand knitting. The company also exports its products. In addition, it engages in lending and investing activities; and manufacturing steel products. The company was formerly known as Mahavir Spinning Mills Limited and changed its name to Vardhman Textiles Limited in September 2006. Vardhman Textiles Limited was founded in 1965 and is based in Ludhiana, India.
Details
| Name: | Vardhman Textiles Limited |
| 502986 | |
| Exchange: | BSE |
| Founded: | 1965 |
| ₹64,171,602,832 | |
| 56,489,087 | |
| Website: | http://www.vardhman.com |
| Address: |
Vardhman Textiles Limited Chandigarh Road, Ludhiana, Punjab, 141010, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 502986 | Equity Shares | Mumbai Stock Exchange | IN | INR | 13. Jul 2001 | |
| NSEI | VTL | Equity Shares | National Stock Exchange of India | IN | INR | 13. Jul 2001 |
Number of employees
Current staff
Industry
| Textiles | |
| Consumer Durables |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/18 12:37 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/10 |
| Last earnings filing: | 2019/02/06 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
